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The World Bank

Implementation Status & Results Report

South Sudan Private Sector Development Project (P128239)

South Sudan Private Sector Development Project (P128239) AFRICA | South Sudan | Finance & Markets Global Practice | Special Financing | Emergency Recovery Loan | FY 2012 | Seq No: 7 | ARCHIVED on 03-Dec-2015 | ISR21461 |

Public Disclosure Authorized

Implementing Agencies:

Key Dates Key Project Dates Bank Approval Date:10-Jan-2012

Effectiveness Date:01-Aug-2012

Planned Mid Term Review Date:29-Apr-2016

Actual Mid-Term Review Date:--

Original Closing Date:30-Nov-2014

Revised Closing Date:01-Dec-2015

Public Disclosure Authorized

Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objective (PDO) is to improve access to finance for private sector development and increase employment opportunities in South Sudan.

Has the Project Development Objective been changed since Board Approval of the Project Objective? No

PHRPDODEL

Components Name

Public Disclosure Authorized

1. Establish Commercially-Viable Microfinance Institutions:(Cost $2.80 M) 2. Promote Micro-Entrepreneurship:(Cost $4.40 M) 3. Mobile Payments and Trade Integration Policy Support:(Cost $0.30 M) 4. Institutional Strengthening of the South Sudan Business Forum and Project Management:(Cost $1.50 M)

Overall Ratings Name

Previous Rating

Current Rating

Progress towards achievement of PDO

 Moderately Satisfactory

 Moderately Satisfactory

Overall Implementation Progress (IP)

 Satisfactory

 Satisfactory

Overall Risk Rating

 --

 High

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The World Bank

Implementation Status & Results Report

South Sudan Private Sector Development Project (P128239)

Implementation Status and Key Decisions The project has made progress in the implementation of all four components and towards achieving the development objective: to improve access to finance for private sector development and increase employment opportunities in South Sudan. In particular, implementation of the Business Startup (BSC) and Business Plan Competitions (BPC) has accelerated with the completion of selection process for Business Start-up Competition (BSC) and Business Plan Competitions (BPC), training of Awardees, signing of Memorandum of Understanding with commercial bank (precursor to disbursement to final beneficiaries), training of business development service (BDS) providers, and delivery of the first round of BDS to BPC winners. The SSMDF has continued to disburse loans and technical assistance to MFIs, a government team has received training on trade negotiations related to the government’s interest in joining the East African Community (EAC), and a draft regulatory framework for mobile banking and payments has been completed and presented to the Central Bank (CB) for Board approval. However, the December 2013 crisis delayed the launch of the Business Plan Competitions and has had a negative impact on the health of the microfinance sector, and in general, has contributed to a deterioration of the business environment. With the project scheduled to close on December 1, 2015, the Ministry of Finance has requested a project extension and additional financing. The Bank is processing the project extension and while the request for additional financing is under review.

Risks Systematic Operations Risk-rating Tool Risk Category

Rating at Approval

Previous Rating

Current Rating

Political and Governance

 --

 --

 High

Macroeconomic

 --

 --

 High

Sector Strategies and Policies

 --

 --

 Moderate

Technical Design of Project or Program

 --

 --

 Moderate

Institutional Capacity for Implementation and Sustainability

 --

 --

 Substantial

Fiduciary

 --

 --

 Moderate

Environment and Social

 --

 --

 Low

Stakeholders

 --

 --

 Moderate

Other

 --

 --

 --

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The World Bank

Implementation Status & Results Report

South Sudan Private Sector Development Project (P128239)

 --

Overall

 --

 High

Results Project Development Objective Indicators PHINDPDOTBL



Number of jobs generated by enterprises supported by the BPC and BSC sub-grants (Number, Custom) Baseline

Actual (Previous)

Actual (Current)

End Target

Value

98.00

--

98.00

1400.00

Date

30-Sep-2011

--

10-Nov-2015

30-Nov-2015

Comments Direct payment to commercial bank administering the BPC/BSC is being processed. Once this disbursement has been made, PCU will inform the winners that the funds are available for withdrawal at local bank branch. It is expected that the 1,301 business competition winners (1,200 from the Business Start-up Competition and 101 from Business Plan Competition) will launch (or scale up) their business plans shortly thereafter, supported by business development services provided by the project. With the launch (or scaling up) of the 1,301 businesses, this indicator will be considered achieved.

PHINDPDOTBL



Number of people with access to finance trough targeted MFIs and BPC (Male) (Number, Custom) Baseline

Actual (Previous)

Actual (Current)

End Target

Value

3069.00

3525.00

2483.00

4440.00

Date

30-Nov-2013

30-Jun-2014

31-May-2015

30-Nov-2015

Comments As of May 2015, there are 2,483 male microfinance beneficiaries (out of 7091). Business Startup competition - Overall, women participants were estimated to be around 63% (756) of all training participants, meaning that the project’s objective of building capacity to 60% of the women under the project was achieved. The percentage of men participants is 37%. Business Startup Competiton - 61/101 beneficiaries are women

PHINDPDOTBL



Number of people with access to finance trough targeted MFIs and BPC (Female) (Number, Custom) Baseline

Actual (Previous)

Actual (Current)

End Target

Value

5531.00

5646.00

4608.00

6660.00

Date

30-Nov-2013

30-Jun-2014

31-May-2015

30-Nov-2015

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The World Bank

Implementation Status & Results Report

South Sudan Private Sector Development Project (P128239)

Comments Business Startup competition - Overall, women participants were estimated to be around 63% (756) of all training participants, meaning that the project’s objective of building capacity to 60% of the women under the project was achieved. The percentage of men participants is 37%. Business Startup Competiton - 61/101 beneficiaries are women

PHINDPDOTBL



Number of businesses supported through BPC (Male) (Number, Custom) Baseline

Actual (Previous)

Actual (Current)

End Target

Value

20.00

20.00

20.00

440.00

Date

30-Sep-2011

30-Jun-2014

10-Nov-2015

30-Nov-2015

Comments 101 BPC winners have been selected, and will receive there funds following disbursement to KCB.

PHINDPDOTBL



Number of businesses supported through BPC (Female) (Number, Custom) Baseline

Actual (Previous)

Actual (Current)

End Target

Value

25.00

25.00

25.00

660.00

Date

30-Sep-2011

30-Jun-2014

30-Jun-2014

30-Nov-2015

PHINDPDOTBL



Number of people with access to finance through targeted MFIs (Male) (Number, Custom) Baseline

Actual (Previous)

Actual (Current)

End Target

Value

3049.00

3505.00

2483.00

4000.00

Date

30-Nov-2013

30-Jun-2014

31-May-2015

30-Nov-2015

Comments Drop reflects gradual decline of microfinance industry since onset of December 2013 crisis (number of active borrowers declined from 8,493 in Dec 2013 to 7091 in May 2015). This follows huge drop in number of active borrowers following exit of BRAC, and suspension of lending by Finance South Sudan Limited.

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The World Bank

Implementation Status & Results Report

South Sudan Private Sector Development Project (P128239)

PHINDPDOTBL



Number of people with access to finance through targeted MFIs (Female) (Number, Custom) Baseline

Actual (Previous)

Actual (Current)

End Target

Value

5506.00

5621.00

4608.00

6000.00

Date

30-Nov-2013

30-Jun-2014

31-May-2015

30-Nov-2015

Comments Drop reflects gradual decline of microfinance industry since onset of December 2013 crisis (number of active borrowers declined from 8,493 in Dec 2013 to 7091 in May 2015). This follows huge drop in number of active borrowers following exit of BRAC, and suspension of lending by Finance South Sudan Limited.

Overall Comments The microfinance sector experienced strong growth in the lead up to independence in 2011, and SSMDF’s portfolio comprised 7 MFIs serving 35,693 clients in 7 states. However, the initial growth of the sector came to an end after the largest MFI with over 25,000 (BRAC) clients exited the market due to the collapse of Nile Commercial Bank, which handled its deposits. The second largest MFI, SUMI, also collapsed when its largest donor, USAID, exited the country. Hence, between approval of PSDP and initial disbursement to SSMDF, the microfinance sector had shrunk by more than 3/4's. The December 2013 crisis dealt another blow to the sector as the majority investor in the largest MFI, Finance South Sudan Limited (FSSL), suspended lending operations. In 2014, a new majority investor came in and FSSL resumed its lending operations, and its active loans have been rescheduled to allow the institution to recover without restraining the new resources availed by the new investor. The results framework was revised in November 2014, with targets substantially reduced, to reflect these negative developments . However, since the restructuring, weak reporting from one large Savings and Credit Cooperative Society has contributed to another apparent drop in overall sector indicators, as reflected in the above results framework. SSMDF is reconciling data from this institution in order to present a more accurate picture of the sector. That said, data through June 2015 show a slight uptick in performance in the sector in terms of number of borrowers and outstanding volume of loans. Business competitions are set to disburse to winners in the weeks ahead (1,200 Business Startup Competition, and 101 Business Plan competitions).

Intermediate Results Indicators PHINDIRITBL



No of active loan accounts -Microfinance (Number, Core) Baseline

Actual (Previous)

Actual (Current)

End Target

Value

6269.00

5556.00

7286.00

6269.00

Date

30-Nov-2013

30-Jun-2014

30-Jun-2014

30-Nov-2014

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The World Bank

Implementation Status & Results Report

South Sudan Private Sector Development Project (P128239)

PHINDIRITBL



Percentage of project-supported institutions that are reporting on this indicator (Percentage, Core Supplement) Baseline

Actual (Previous)

Actual (Current)

End Target

100.00

86.00

86.00

100.00

Baseline

Actual (Previous)

Actual (Current)

End Target

Value

25.00

18.70

15.20

15.00

Date

30-Sep-2011

31-Dec-2014

31-May-2015

30-Nov-2015

Value

PHINDIRITBL



Portfolio at Risk - Microfinance (Percentage, Core)

PHINDIRITBL



Percentage of project-supported institutions that are reporting on this indicator (Percentage, Core Supplement)

Value

Baseline

Actual (Previous)

Actual (Current)

End Target

67.00

86.00

86.00

100.00

PHINDIRITBL



Number of ongoing businesses supported through BPC (Male) (Number, Custom) Baseline

Actual (Previous)

Actual (Current)

End Target

Value

0.00

0.00

0.00

40.00

Date

30-Sep-2011

30-Jun-2014

30-Jun-2014

30-Nov-2015

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The World Bank

Implementation Status & Results Report

South Sudan Private Sector Development Project (P128239)

PHINDIRITBL



Number of ongoing businesses supported through BPC (Female) (Number, Custom) Baseline

Actual (Previous)

Actual (Current)

End Target

Value

0.00

0.00

0.00

60.00

Date

30-Sep-2011

30-Jun-2014

30-Jun-2014

30-Nov-2015

PHINDIRITBL



Number of startup businesses supported through BPC (Male) (Number, Custom) Baseline

Actual (Previous)

Actual (Current)

End Target

Value

20.00

20.00

20.00

420.00

Date

30-Sep-2011

30-Jun-2014

30-Jun-2014

30-Nov-2015

PHINDIRITBL



Number of businesses supported through the BPC still in operation at the end of theproject (Number, Custom) Baseline

Actual (Previous)

Actual (Current)

End Target

Value

0.00

0.00

0.00

50.00

Date

30-Sep-2011

30-Jun-2014

30-Jun-2014

30-Nov-2015

PHINDIRITBL



Number of startup businesses supported through BPC (Female) (Number, Custom) Baseline

Actual (Previous)

Actual (Current)

End Target

Value

25.00

25.00

25.00

625.00

Date

30-Sep-2011

30-Jun-2014

30-Jun-2014

30-Nov-2015

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The World Bank

Implementation Status & Results Report

South Sudan Private Sector Development Project (P128239)

PHINDIRITBL



Number of MCII staff trained on trade policy and integration (Number, Custom) Baseline

Actual (Previous)

Actual (Current)

End Target

Value

0.00

25.00

25.00

25.00

Date

30-Sep-2011

31-Jul-2014

31-Jul-2014

30-Nov-2015

PHINDIRITBL



The regulatory framework for mobile banking and payments is completed and presented to Cabinet (Yes/No, Custom) Baseline

Actual (Previous)

Actual (Current)

End Target

Value

N

N

N

Y

Date

30-Sep-2011

30-Jun-2014

30-Jun-2014

30-Nov-2015

Comments the draft regulatory framework was completed and presented to Central Bank top management in October 2015. CBoSS has indicated that it will table the regulations for Central Bank Board approval at its next meeting, which will avoid the backlog of seeking legislative approval. This is a very positive development, and the indicator would be considered achieved upon presentation to Central Bank board.

Overall Comments

Data on Financial Performance Disbursements (by loan) Project

Loan/Credit/TF

Status

Currency

Original

Revised

Cancelled

Disbursed

Undisbursed

Disbursed

P128239

TF-11812

Effective

USD

9.00

9.00

0.00

6.70

2.30

74%

Key Dates (by loan) Project

Loan/Credit/TF

Status

Approval Date

Signing Date

Effectiveness Date

Orig. Closing Date

Rev. Closing Date

P128239

TF-11812

Effective

14-Mar-2012

14-Mar-2012

01-Aug-2012

30-Nov-2014

01-Dec-2015

Cumulative Disbursements

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The World Bank

Implementation Status & Results Report

South Sudan Private Sector Development Project (P128239)

Restructuring History Level 2 Approved on 06-Nov-2014 ,Level 2 Approved on 21-Nov-2015

Related Project(s) There are no related projects.

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