The World Bank Implementation Status & Results Report Access to Finance & Economic Opportunities Project – Mais Oportunidades (P178658) Access to Finance & Economic Opportunities Project – Mais Oportunidades (P178658) EASTERN AND SOUTHERN AFRICA | Mozambique | IBRD/IDA | Investment Project Financing (IPF) | FY 2023 | Seq No: 4 | Archived on 10-Dec-2024 | ISR02247 Implementing Agencies: Ministry of Economy and Finance 1. OBJECTIVE 1.1 Development Objective Original Development Objective (Approved as part of Approval package on 30-Mar-2023) The project development objective is to support the growth of micro, small, and medium enterprises (MSMEs) in Mozambique by (i) increasing access and usage of financial services and (ii) increasing access to economic opportunities. Has the Development Objective been changed since Board Approval of the Project Objective? No 2. COMPONENTS Name Component 1. Promote access and usage of financial services for MSMEs:(Cost 225,000,000.00) Component 2. Improve access to economic opportunities and jobs for MSMEs:(Cost 65,000,000.00) Component 3. Project management:(Cost 10,000,000.00) 3. OVERALL RATINGS Name Previous Current Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Substantial Substantial 4. KEY ISSUES & STATUS Dec 10, 2024 Page 1 of 12 The World Bank Implementation Status & Results Report Access to Finance & Economic Opportunities Project – Mais Oportunidades (P178658) 4.1 Implementation Status and Key Decisions The authorities approved the creation of the credit guarantee fund and of its management company (SGM), as well as of its investment policy, meeting the first two performance-based conditions (PBCs). This triggered a disbursement of $20m. The SGM interim management team began operations in March 2024 and has prepared the application to the Bank of Mozambique for a license. IGEPE is preparing the commercial registration of SGM and its Articles of Association, and will submit the licensing application to the Bank of Mozambique. SGM's interim management team is preparing the operations manual (PBC #3), with the support of the team of consultants funded by the Project. These consultants are also supporting the preparation of the Risk Management Framework (and related manuals) and other tools necessary for the operationalisation of the Fund (PBC #4). SGM will begin discussions with potential participating financial institutions (PFIs) after the registration and licensing of SGM. The project will finance the rental of office space for SGM and the procurement of an information management system and consulting services. Business environment reforms coordinated under the PAE Delivery Unit at the Ministry of Economy and Finance are underway with the Ministries of Justice, Public Works, Industry and Commerce, and INATUR. The Project has made progress in identifying and conducting preparatory studies for last-mile infrastructure. Environmental and social screening (A&S) has been completed for the training centre at UniZambeze (Manica) and the road/bridge on the Lumani River (Gaza), and is underway for the rehabilitation of the dike and training centre at Buzi (Sofala), rehabilitation of roads and bridge on the Chicamba Ring (Manica), and requalification of the Tofo market (Inhambane). The Catalytic Fund (FCID) will launch the two new matching grants windows in the first quarter of 2025. SMEs graduating from these programs will constitute a primary target audience to leverage the access to finance instruments implemented under Component 1. 5. SYSTEMATIC OPERATIONS RISK-RATING TOOL Rating at Approval Last Approved Rating Risk Category Approval Package - ISR Seq. 03 - 24 Jun Proposed Rating 30 Mar 2023 2024 Political and Governance Substantial Substantial Substantial Macroeconomic Substantial Substantial Substantial Sector Strategies and Policies Low Low Moderate Technical Design of Project or Program Moderate Moderate Moderate Institutional Capacity for Implementation and Substantial Substantial Substantial Sustainability Fiduciary Substantial Substantial Substantial Dec 10, 2024 Page 2 of 12 The World Bank Implementation Status & Results Report Access to Finance & Economic Opportunities Project – Mais Oportunidades (P178658) Environment and Social Substantial Substantial Substantial Stakeholders Moderate Moderate Moderate Overall Substantial Substantial Substantial Dec 10, 2024 Page 3 of 12 The World Bank Implementation Status & Results Report Access to Finance & Economic Opportunities Project – Mais Oportunidades (P178658) 6. RESULTS 6.1 PDO Indicators by PDO Outcomes PDO Indicators Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year 0.00 Sep/2022 0.00 31-May-2024 0.00 31-Oct-2024 450,000,000.00 Dec/2028 Volume of loans to MSMEs Comments on Volume of loans issued to MSMEs either guaranteed through the CGS or financed by the facilitated by the project achieving targets credit line (assuming that some loans will benefit from the credit line in conjunction with the (Amount(USD)) CGS, to avoid double counting) 0.00 0.00 0.00 375,000,000.00 Of which through the Comments on Volume of loans issued to SMEs guaranteed through the CGS CGS (Amount(USD)) achieving targets Of which through the 0.00 0.00 0.00 80,000,000.00 line of credit Comments on Number of loans to MSMEs facilitated by the line of credit (Amount(USD)) achieving targets Number of loans to MSMEs 0.00 Sep/2022 0.00 31-May-2024 0.00 31-Oct-2024 20,000.00 Dec/2028 facilitated by the project Comments on Number of loans to MSMEs facilitated by the project (assuming that 20% of the loans (Number) achieving targets facilitated through the CGS will also go through the credit line to avoid double-counting) 0.00 0.00 0.00 5,000.00 Of which through the Comments on Number of loans to SMEs facilitated by the project through the CGS CGS (Number) achieving targets Of which through the 0.00 0.00 0.00 16,000.00 line of credit Comments on Number of loans to MSMEs facilitated by the line of credit (Number) achieving targets Dec 10, 2024 Page 4 of 12 The World Bank Implementation Status & Results Report Access to Finance & Economic Opportunities Project – Mais Oportunidades (P178658) 0.00 0.00 0.00 7,000.00 Comments on Women-owned enterprises are those where women directly own more than 50% of the Of which issued to achieving targets company or that was founded by a woman or group of women that retain(s) an active role in women-owned/-led the organization. Women-led enterprises are those with at least 30% of women in senior MSMEs (Number) management position (such as managing directors and partners) or with at least 30% of women as board members. 0.00 0.00 0.00 1,000.00 Of which with a climate Comments on Number of loans to MSMEs to finance projects under (i) the climate adaptation window of adaptation or achieving targets the CGS for loans to sectors particularly affected by climate risk—namely, the agriculture, mitigation component tourism and transport sectors; or (ii) the clean energy window of the CGS for loans financing (Number) the off-grid solar energy access. Women-led SMEs benefiting from firm-level interventions with increase in sales (Percentage) Percentage of SMEs 0.00 Sep/2022 0.00 31-May-2024 0.00 31-Oct-2024 80.00 Dec/2028 benefiting from firm-level Comments on Comparing change in annual sales of firms supported with skills, quality upgrading, access to interventions with increase in achieving targets finance and to markets' interventions. sales (Percentage) 0.00 0.00 0.00 25.00 of which in women- Comments on Comparing change in annual sales of firms supported with skills, quality upgrading, access to owned/-led SMEs achieving targets finance and to markets' interventions (Comp 2). We aim for 25% of the 80% SMEs with (Percentage) increase in sales to be WSMEs (or 31% of total beneficiary SMEs)--well above the 17%market representation of WSMEs. Number of new jobs in 0.00 Oct/2022 0.00 31-May-2024 0.00 31-Oct-2024 26,250.00 Dec/2028 MSMEs supported by the project (Number) 0.00 0.00 0.00 20,000.00 Dec 10, 2024 Page 5 of 12 The World Bank Implementation Status & Results Report Access to Finance & Economic Opportunities Project – Mais Oportunidades (P178658) Of which from access Comments on New jobs are defined as new employment in firms supported by the project. to finance (Number) achieving targets Of which from private 0.00 0.00 0.00 6,250.00 sector interventions Comments on New jobs are defined as new employment in firms supported by the project. (Number) achieving targets of which in women- 0.00 0.00 0.00 30.00 owned/-led MSMEs Comments on New jobs - new employment in firms supported by the project; (Percentage) achieving targets Percentage of beneficiaries 0.00 Sep/2022 0.00 31-May-2024 0.00 31-May-2024 75.00 Dec/2028 satisfied with financial Comments on Percentage of beneficiaries satisfied with financial services facilitated by the project services facilitated by the achieving targets (including enhanced access to and better terms of credit and savings products) and private project and private sector sector interventions (including ecosystem, market, and firm level interventions). interventions (Percentage) 6.2 Intermediate Results Indicators by Components Not Categorized Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year Credit Guarantee Fund (CGF) No Oct/2022 Yes 18-Jun-2024 Yes 31-Oct-2024 Yes Dec/2028 legally established, Manager Comments on See Verification Protocol table and Managing Board achieving targets appointed, and Independent Product and Services Committee established (Yes/No) PBC No Oct/2022 0 18-Jun-2024 0 31-Oct-2024 Yes Dec/2028 Dec 10, 2024 Page 6 of 12 The World Bank Implementation Status & Results Report Access to Finance & Economic Opportunities Project – Mais Oportunidades (P178658) Operating Manual approved Comments on See Verification Protocol table (Yes/No) PBC achieving targets No Oct/2022 0 18-Jun-2024 Yes 31-Oct-2024 Yes Dec/2028 Investment Policy approved Comments on See Verification Protocol table (Yes/No) PBC achieving targets Other instruments necessary No Oct/2022 0 18-Jun-2024 0 31-Oct-2024 Yes Dec/2028 to operationalize the CGF Comments on See Verification Protocol table approved (Yes/No) PBC achieving targets First guarantee issued to a No Oct/2022 0 18-Jun-2024 0 31-Oct-2024 Yes Dec/2028 participating financial Comments on See Verification Protocol table institution (PFI) achieving targets (Yes/No) PBC No Oct/2022 0 18-Jun-2024 0 31-Oct-2024 Yes Dec/2028 Guarantee issued to a second Comments on See Verification Protocol table PFI (Yes/No) PBC achieving targets Number of PFIs onboarded to 0.00 Oct/2022 0.00 18-Jun-2024 0.00 31-Oct-2024 4.00 Dec/2028 the credit line (Number) Number of saving accounts 0.00 Oct/2022 0.00 30-Jun-2023 0.00 30-Jun-2023 200,000.00 Dec/2025 opened by women and Comments on Number of saving accounts opened by women and women-owned/-led MSMEs in the formal women-owned/-led MSMEs achieving targets financial sector triggering a matching grant in the formal financial sector (Number) SMEs benefiting from firm 0.00 Oct/2022 0.00 18-Jun-2024 0.00 31-Oct-2024 1,250.00 Dec/2028 capabilities interventions Comments on - (Number) achieving targets of which, women- 0.00 0.00 0.00 25.00 owned/-led SMEs Comments on - (Percentage) achieving targets Dec 10, 2024 Page 7 of 12 The World Bank Implementation Status & Results Report Access to Finance & Economic Opportunities Project – Mais Oportunidades (P178658) of which, SMEs 0.00 0.00 0.00 100.00 receiving green Comments on - competitiveness achieving targets capacity-building (Percentage) Implemented reforms 0.00 Oct/2022 0 18-Jun-2024 0 31-Oct-2024 3.00 Dec/2028 supporting private sector development (Number) Productive last-mile 0.00 Jul/2023 0.00 18-Jun-2024 0.00 31-Oct-2024 4.00 Dec/2028 infrastructure sites built Comments on - and/or upgraded (Number) achieving targets 0.00 Sep/2022 0.00 18-Jun-2024 0.00 18-Jun-2024 15,000,000.00 Dec/2028 Value of private sector Comments on Resources mobilized from the private sector in activities of the project that are aligned with investment leveraged by achieving targets reaching the project's objectives. This includes private sector funds mobilized under the direct activities of the project matching grant (Comp 2(c) and private investment catalyzed through investment promotion (Amount(USD)) support (Comp 2(a)). 6.3 Performance Based Conditions (PBC) Actual (Previous) Actual (Current) PBC Name Baseline Closing Period Value Date Value Date 1:Credit Guarantee Value No Yes Yes Yes Fund (CGF) legally established, Allocated 31-Oct-2024 31-Oct-2024 Manager and 0.00 0.00 0.00 Managing Board Amount appointed, and Dec 10, 2024 Page 8 of 12 The World Bank Implementation Status & Results Report Access to Finance & Economic Opportunities Project – Mais Oportunidades (P178658) Independent Product and Services Committee established (Yes/No) Achieved PBC allocation 10,000,000.00 2:Operating Manual Value No 0 0 Yes approved (Yes/No) Allocated 31-Oct-2024 31-Oct-2024 Not Due 0.00 0.00 0.00 Amount PBC allocation 10,000,000.00 3:Investment Policy Value No Yes Yes Yes approved (Yes/No) Allocated 31-Oct-2024 31-Oct-2024 Achieved 0.00 0.00 0.00 Amount PBC allocation 10,000,000.00 4:Other instruments Value No 0 0 Yes necessary to operationalize the Allocated 31-Oct-2024 31-Oct-2024 CGF approved 0.00 0.00 0.00 (Yes/No) Amount Not Due PBC allocation 10,000,000.00 5:First guarantee Value No 0 0 Yes issued to a participating Allocated 31-Oct-2024 31-Oct-2024 financial institution 0.00 0.00 0.00 (PFI) (Yes/No) Amount Not Due Dec 10, 2024 Page 9 of 12 The World Bank Implementation Status & Results Report Access to Finance & Economic Opportunities Project – Mais Oportunidades (P178658) PBC allocation 40,000,000.00 6:Guarantee issued Value No 0 0 Yes to a second PFI Allocated 18-Jun-2024 18-Jun-2024 (Yes/No) 0.00 0.00 40,000,000.00 Not Due Amount PBC allocation 40,000,000.00 Dec 10, 2024 Page 10 of 12 The World Bank Implementation Status & Results Report Access to Finance & Economic Opportunities Project – Mais Oportunidades (P178658) 7. DATA ON FINANCIAL PERFORMANCE 7.1 Cumulative Disbursements 7.2 Disbursements (by loan) Loan/Credit/TF Status Original Revised Cancelled Disbursed Undisbursed % Disbursed Historical Disbursed IDA-72780 Effective 300.00 292.66 0.00 24.65 268.06 8.42% 300.00 7.3 Key Dates (by loan) Loan/Credit/TF Status Approval Signing Effectiveness Orig. Closing Rev. Closing IDA-72780 Effective 30-Mar-2023 12-May-2023 07-Aug-2023 31-Dec-2029 31-Dec-2029 8. KEY DATES Dec 10, 2024 Page 11 of 12 The World Bank Implementation Status & Results Report Access to Finance & Economic Opportunities Project – Mais Oportunidades (P178658) Key Events Planned Actual Approval 30-Mar-2023 30-Mar-2023 Effectiveness 07-Aug-2023 07-Aug-2023 Mid-Term Review No. 01 30-Mar-2026 Operation Closing/Cancellation 31-Dec-2029 9. RESTRUCTURING HISTORY 10. ASSOCIATED OPERATION(S) There are no associated operations Dec 10, 2024 Page 12 of 12