The World Bank Report No: ISR14885 Implementation Status & Results Ethiopia Women Entrepreneurship Development Project (P122764) Public Disclosure Copy Operation Name: Women Entrepreneurship Development Project (P122764) Project Stage: Implementation Seq.No: 4 Status: ARCHIVED Archive Date: 02-Jul-2014 Country: Ethiopia Approval FY: 2012 Product Line: IBRD/IDA Region: AFRICA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key Dates Board Approval Date 24-May-2012 Original Closing Date 31-Dec-2017 Planned Mid Term Review Date 15-Jun-2015 Last Archived ISR Date 31-Dec-2013 Effectiveness Date 05-Oct-2012 Revised Closing Date 31-Dec-2017 Actual Mid Term Review Date 15-Jun-2015 Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objective of the WEDP is to increase the earnings and employment of MSEs owned or partly owned by the participating female entrepreneurs in the targeted cities. This will be achieved by: i) tailoring financial instruments to the needs of the participants and ensuring availability of finance; and ii) developing the entrepreneurial and technical skills of the target group and supporting cluster, technology and product development for their businesses. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Component 1: Access to Microfinance 42.40 Component 2: Entrepreneurial skills, Technology and Cluster Development. 6.10 Component 3: Project Management, Advocacy and Outreach, Monitoring Evaluation and Impact 1.50 Evaluation. Public Disclosure Copy Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Moderate Moderate Implementation Status Overview A project Implementation Support Mission for Ethiopia - Women Entrepreneurship Development Project took place from April 23 to May 2, 2014. The objectives of the Implementation Support Mission were to ensure that within the project: (i) the Micro Finance Institutions (MFIs) are disbursing funds to the women clients and receiving adequate technical assistance; (ii) the One Stop Services are sufficiently prepared and registering clients; (iii) the skills development consultancy for component 2 is on track to start; and (iv) other Page 1 of 7 The World Bank Report No: ISR14885 pending procurement tasks are properly addressed. In addition, the ISM formally transferred the Team Leadership of the project as of July 1, 2014. Component 1 has continued to register significant progress since the last implementation mission with the initial disbursements from the line of credit to 5 (out of 8) MFIs, reaching over 400 final beneficiaries with a total loan of approximately ETB 90 million as of end April 2014 (resulting in an average loan per client of approx. ETB 215,000). Since the last Public Disclosure Copy implementation mission, the TA program to MFIs (delivered by the DAI/PEPE team funded by DFID) has continued to provide a sound and tailored capacity building to the participating MFIs. The main task of the intensive TA program was to ensure that MFIs have a solid foundation for identifying potential WEDP clients, assessing the clients’ businesses and analyzing the cash flow, character and repayment capacity of the borrower. All MFIs submitted their initial request for their first advance against the WEDP credit line during the Q4 2013. In early December 2013, DBE had secured and received the first advance of USD 16.2 million for the MFIs by the World Bank. As of end Q1 2014, DBE had disbursed 69% of the first advance to MFIs, which is Birr 212 Million (USD 11.2 million). Challenges observed by the mission for component 1 inlcude: reporting lag, communication, incentives to MFIs for adopting innovative approaches, and collaboration between OSS and MFIs. All these challenges were discussed with the relevant counterparts and are currently being addressed. Component 2. The mission visited 33 One Stop Services (OSSs) in Addis, Adama, Bahir Dar, and Hawassa. OSSs which serve as the entry point for WEDP have made significant progress over the past six months in their readiness to intake clients. The OSSs in the three cities of Addis, Adama, and Bahir Dar are successfully registering WEDP clients and referring them to available WEDP services. There are a total of approximately 1,800 women entrepreneurs who have been registered and issued unique ID codes in the three cities of Addis, Adama, and Bahir Dar as of end-April 2014. A central client database has been established, which includes profile information on individual clients such as their age, education, business experience, business sector, borrowing history, and enterprise statistics. An analysis of the clients registered to dates suggests that the OSSs have successfully attracted the growth-oriented women entrepreneurs which the project is targeting. The main challenge for this component continues to be the gap in delivering skills development services to WEDP clients during the interim period until the TVET colleges have benefited from the support of the international skills development consulting firm, which has now been hired. The mission recommends adopting a two pronged approach to delivering training services to existing and newly registering WEDP clients: the first possible channel is to use services of the UNDP funded Entrepreneurship Development Center (EDC). The second possible channel is to pilot in one or two TVET colleges the process of offering currently existing TVET services specifically to WEDP clients. Both these options are currently being explored while, in parallel, the skills development consulting firm will complete its inception report phase. Locations Country First Administrative Division Location Planned Actual Ethiopia Adis Abeba Astedader Adis Abeba Astedader ✔ Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Public Disclosure Copy Increase in number of hours of worked for the Percentage Value MSE per week (paid and unpaid) Date 31-Oct-2012 02-May-2014 31-Dec-2017 Comments to be completed by data not yet available Target: baseline +50% September 2014 with retroactive information Increase in numbers of full-time and part-time Percentage Value employees (paid and unpaid) Date 31-Oct-2012 31-Dec-2017 Page 2 of 7 The World Bank Report No: ISR14885 Comments to be completed by data not yet available Target: baseline +30% September 2014 with retroactive information Public Disclosure Copy Increase in yearly average business earnings Percentage Value Date 31-Oct-2012 31-Dec-2017 Comments to be completed by data not yet available Target: baseline +50% September 2014 with retroactive information Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Intermediate Number of OSS, PFIs and TVETs Number Value 0.00 41.00 61.00 reporting according to the WEDP M&E system Date 31-Oct-2012 02-May-2014 31-Dec-2017 Comments OSSs in Addis (20), Bahir Dar (5), Adama (5), and Dire Dawa (5) are all now reporting correctly on client registration via the excel database. Dire Dawa began registration in early May, coinciding with the launch of OCCSCO’s MFI branch in Dire Dawa. Moreover 5 PFIs and 1 TVET are also reporting according to the system. Establish an Women Entrepreneurship Number Value 0.00 0.00 6.00 Development Training Program with fully Date 31-Oct-2012 02-May-2014 31-Dec-2017 operative modules Comments With considerable delay, the training program is now being developed. Fully staffed, trained and well-functioning OSS Number Value 0.00 35.00 45.00 Public Disclosure Copy Date 31-Oct-2012 02-May-2014 31-Dec-2017 Comments OSSs in Addis (20), Bahir Dar (5), Adama (5), Hawassa (5) are fully staffed, trained and well-functioning. Although only 33 were visited during ISM visits, the other 2 (in Addis) have recently been visited by the project team Page 3 of 7 The World Bank Report No: ISR14885 and are correctly intaking clients. Data collection and reporting Text Value 0 35 OSSs + 5 MFIs Public Disclosure Copy Date 31-Oct-2012 02-May-2014 Comments Data from 35 OSSs and 5 MFIs is being collected. Percentage of trainees passing the end-of- Percentage Value 0.00 0.00 80.00 training competency test Date 31-Oct-2012 02-May-2014 31-Dec-2017 Comments The training program is now being developed. Direct project beneficiaries Number Value 0.00 420.00 17500.00 Date 31-Oct-2012 02-May-2014 31-Dec-2017 Comments The MFIs have provided loans to 420 Women MSEs with a considerable larger individual loan than the project had anticipated. This explains the lower number of beneficiaries. However it's in line with the TA program that is encouraging MFIs to increase their loan sizes Female beneficiaries Percentage Value 0.00 100.00 100.00 Sub Type Supplemental Number of PFIs that have adopted and Number Value 0.00 5.00 10.00 implemented institution development plans and Date 31-Oct-2012 02-May-2014 31-Dec-2017 project-related credit technologies Comments 5 out of the initial 8 MFIs have received full TA support. The 3 remaining ones have been Public Disclosure Copy kept on hold as non compliant anymore with the initial selection criteria. Their TA was authorized to start in April 2014, after the March 2014 Quarterly report from NBE confirmed that they are back on truck with the regulatory requirements. Portfolio at Risk - SME Percentage Value 5.10 3.00 3.00 Page 4 of 7 The World Bank Report No: ISR14885 Date 31-Oct-2012 02-May-2014 31-Dec-2017 Comments average PAR for the 8 participating MFIs Public Disclosure Copy Percentage of project-supported institutions Percentage Value 100.00 100.00 100.00 that are reporting on this indicator Sub Type Supplemental Increase in General Business Knowledge Percentage Value 0.00 10.00 Date 02-May-2014 31-Dec-2017 Comments to be collected with the The training program has not Baseline + 10% baseline survey yet commenced. Number of trained loan officers Percentage Value 0.00 21.00 20.00 Date 02-May-2014 31-Dec-2017 Comments Considering that there are, on average, 3 loan officers per sub-branch, the number of dedicated sub-branches for WEDP is 151 sub branches. Thus, the total number of loan officers in those sub-branches would be 453. We have trained a total of 94 loan officers. This equates to 21% loan officers trained Outstanding SME Loan Portfolio Amount(USD) Value 0.00 4500000.00 8500000.00 Date 31-Oct-2012 02-May-2014 31-Oct-2014 Comments corresponding to approx. ETB 90,157,000 mill disbursed by 5 MFIs to final beneficiaries as of end-April 2014 Public Disclosure Copy Percentage of project-supported institutions Percentage Value 0.00 63.00 100.00 that are reporting on this indicator Sub Type Supplemental Volume of Bank Support: Institutional Amount(USD) Value 0.00 1500000.00 300000.00 Development - SME Date 31-Oct-2012 02-May-2014 31-Dec-2017 Comments Volume of Bank Support: Lines of Credit - SME Amount(USD) Value 0.00 16200000.00 42400000.00 Date 31-Oct-2012 02-May-2014 31-Dec-2017 Page 5 of 7 The World Bank Report No: ISR14885 Comments Amount disbursed by the World Bank to DBE as wholesaler for the line of credit Public Disclosure Copy Volume of Bank Support: Lines of Credit - Amount(USD) Value 0.00 16200000.00 42400000.00 Microfinance Date 31-Oct-2012 02-May-2014 31-Dec-2017 Comments No of active loan accounts -SME Number Value 0.00 420.00 3000.00 Date 31-Oct-2012 02-May-2014 31-Oct-2014 Comments These are final beneficiaries who received a loan by end- April 2014. The average loan size is higher than forecasted at project appraisal. This is also in line with the WEDP TA objective of supporting MFIs to increase loan sizes Percentage of project-supported institutions Percentage Value 0.00 63.00 100.00 that are reporting on this indicator Sub Type Supplemental Data on Financial Performance (as of 23-May-2014) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P122764 IDA-51120 Effective 24-May-2012 12-Jun-2012 05-Oct-2012 31-Dec-2017 31-Dec-2017 P122764 TF-16392 Effective 23-Apr-2014 23-Apr-2014 23-Apr-2014 31-Dec-2017 31-Dec-2017 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed Public Disclosure Copy P122764 IDA-51120 Effective USD 50.00 50.00 0.00 20.58 28.94 41.00 P122764 TF-16392 Effective USD 5.17 5.17 0.00 0.00 5.17 0.00 Disbursement Graph Page 6 of 7 The World Bank Report No: ISR14885 Public Disclosure Copy Key Decisions Regarding Implementation All documents for the project have been disclosed. Restructuring History There has been no restructuring to date. Related Projects There are no related projects. Public Disclosure Copy Page 7 of 7