The World Bank Report No: ISR6462 Implementation Status & Results Sudan Sudan Microfinance Development Facility Project (P102315) Public Disclosure Copy Operation Name: Sudan Microfinance Development Facility Project (P102315) Project Stage: Implementation Seq.No: 8 Status: ARCHIVED Archive Date: 04-Nov-2011 Country: Sudan Approval FY: 2007 Product Line: Recipient Executed Activities Region: AFRICA Lending Instrument: Emergency Recovery Loan Implementing Agency(ies): Central Bank of Sudan Key Dates Board Approval Date 22-May-2007 Original Closing Date 30-Jun-2011 Planned Mid Term Review Date Last Archived ISR Date 04-Nov-2011 Effectiveness Date 14-Apr-2008 Revised Closing Date 30-Jun-2012 Actual Mid Term Review Date 24-May-2010 Project Development Objectives Project Development Objective (from Project Appraisal Document) The development objective is to increase the availability of affordable financial services to 200,0000 households by supporting the emergence of commercially sustainable microfinance service providers. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost CBOS and MFNE Capacity Building 0.25 Sudan Microfinance Development Facility 4.10 Microfinance Sector Development 17.00 Monitoring and Evaluation 0.05 Overall Ratings Public Disclosure Copy Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Implementation Status Overview The implementation progress of all four project components has shown progress since the last ISR. The goal of reaching 200,000 people with access to microfinance has been achieved, with over 209,000 Sudanese accessing financial services through MFIs and commercial banks. Activities under component one have been implemented, including the microfinance policy and the guidelines for monitoring and evaluation of the sector. Page 1 of 5 The World Bank Report No: ISR6462 After the departure of the Frankfurt School in July 2011, SMDF has been in a transitional period. Moreover, the microfinance industry in Sudan is also in a transitional phase, with the government currently preparing a new Microfinance Strategy that will set up the future roles that organizations will play in the sector, including SMDF and the Microfinance Unit in the Central Bank. Public Disclosure Copy There are many changes currently in progress in SMDF such as the review of the role of the General Assembly, the selection of a new board of directors, and the completion of the staffing of SMDF. As a result of these changes, together with the restructuring of the microfinance sector in Sudan, the implementation of the project has slowed down during the last five months, making it difficult for the project to achieve its disbursement targets by June 30, 2012. However, CBOS plans to continue supporting SMDF and the counterpart funding will be used for SMDF to maintain its role as a wholesaler for microfinance. SMDF's financial and management sustainability will depend in the role that is meant to play as part of the new National Microfinance Strategy. As of April 2, total MDTF-N funds committed to the SMDF project amounted to US$ 11.8m, while accumulated disbursements amounted to US$9.53m, representing a disbursement rate of 81 percent. Locations No Location data has been entered Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target 1. Increase in the number of microfinance Text Value 2 9 8 institutions Date 22-May-2007 31-Mar-2012 31-Dec-2012 Comments 2. Increase in the number of commercially Text Value 0 4 sustainable institutions Date 22-May-2007 31-Mar-2012 31-Dec-2012 Comments There are still no increase in the number of commercially sustainable institutions. However it must be noted that while lending is at market rates, the source of funding Public Disclosure Copy for these institutions is subsidized. These include SDF Khartoum and SDF Kassala. 3. Greater diversity in the range of Text Value 0% of providers with savings 80% of providers with savings microfinance products and loan facilities and loan facilities Date 22-May-2007 31-Mar-2012 31-Dec-2012 Comments MFIs are now able to take deposits. However, there are no MFIs currently doing it. Page 2 of 5 The World Bank Report No: ISR6462 4. Number of clients and geographical Text Value Clients North <50000 South 209,000 Clients North 150000 South coverage <5000 Total <55000 Region 50000 Total 200000 Region Urban 80 % Rural 20 % Urban 50% Rural 50% Public Disclosure Copy Date 22-May-2007 31-Mar-2012 31-Dec-2011 Comments The figures are for all Sudan Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Improved licensing, regulatory and market Text Value None 80% compliance to prudential conduct rules (deposit taking MFIs) and market Date 22-May-2007 30-Jun-2011 31-Dec-2012 Comments Regulatory framework developed and implemented by the Central Bank to regulate the sector. All MFI's subject to regulations of CBoS. Capable, transparent, independent, efficient Text Value No Microfinance Development Support to at least 10-15 Facility delivering appropriate tailored services Facility, No policies for TA microfinance providers and 15 service providers Date 22-May-2007 30-Jun-2011 31-Dec-2012 Comments Share of Sudan Microfinance Development Text Value 0 100 100 Facility Staff who are Sudanese. Date 22-May-2007 31-Mar-2012 31-Dec-2012 Comments 100% of professional staff are national. Diverse range of MF providers operating Text Value Minimum 4 diverse MF 5 8 including NGOs, specialized MFIs, banks and providers others Date 22-May-2007 30-Dec-2011 31-Dec-2012 Public Disclosure Copy Comments Currently 5. These include 1 commercial company supporting 60 CBO's and 1 NGO under registration as an MFI. Improved risk based monitoring and Text Value None 100% offsite analysis and enforcement 100% onsite inspections Date 22-May-2007 31-Dec-2011 31-Dec-2011 Comments Regulations and supervisory framework have been Page 3 of 5 The World Bank Report No: ISR6462 prepared by Senior Policy Advisor. F Public Disclosure Copy Data on Financial Performance (as of 24-Apr-2012) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P102315 TF-90080 Effective 22-May-2007 22-May-2007 14-Apr-2008 30-Jun-2011 30-Jun-2012 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P102315 TF-90080 Effective USD 10.00 11.81 0.00 9.50 2.31 80.00 Disbursement Graph Public Disclosure Copy Key Decisions Regarding Implementation The key decision related to the project continues to be the future sustainability of the Sudan Microfinance Development Facility (SMDF) as a microfinance Apex institution in Sudan. On February 15, 2012, the Ministry of Finance and National Economy requested an extension of the closing date of the project to June 30, 2013. The extra 12 months will ensure that the project achieves its development objective and effectively utilizes the remaining funds. The SMDF is formulating, in close consultation with the Bank, an activity program along with a disbursement plan until the requested completion date of June 2013. The extension request will be discussed during the next OC meeting in early-May and if supported, the SMDF project will be extended until June 30, 2013. Restructuring History Page 4 of 5 The World Bank Report No: ISR6462 Level two Approved on 25-May-2011 Related Projects Public Disclosure Copy There are no related projects. Public Disclosure Copy Page 5 of 5