The World Bank Implementation Status & Results Report Mozambique: Financial Inclusion and Stability Project (P166107) Mozambique: Financial Inclusion and Stability Project (P166107) AFRICA | Mozambique | Finance, Competitiveness and Innovation Global Practice | IBRD/IDA | Investment Project Financing | FY 2019 | Seq No: 3 | ARCHIVED on 25-Mar-2020 | ISR40917 | Implementing Agencies: Ministry of Economy and Finance, Ministry of Economy and Finance, Deposit Guarantee Fund, Bank of Mozambique, Instituto de Supervisao de Seguros de Mocambique Key Dates Key Project Dates Bank Approval Date: 13-Dec-2018 Effectiveness Date: 29-Aug-2019 Planned Mid Term Review Date: 30-Sep-2021 Actual Mid-Term Review Date: Original Closing Date: 30-Jun-2024 Revised Closing Date: 30-Jun-2024 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The objective of the Project is to increase financial inclusion among underserved groups and MSMEs, while strengthening the overall financial safety net. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Increasing usage of transaction accounts and access to finance for MSMEs:(Cost $20.00 M) Financial safety net strengthening:(Cost $17.00 M) Project management, monitoring and evaluation:(Cost $3.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions The project was declared effective on August 29, 2019. The PIU has been operational since the last quarter of 2019 and implementing agencies have appointed focal points. TORs and specifications for key contracts have been drafted and submitted to the PIU for advertisement, covering (i) financial literacy and awareness; (iii) collateral registry hardware; and (iii) IT equipment for the Treasury. The procurement notice of the latter package has been advertised. Other TORs and specifications have been drafted and are in final stages of completion. The Bank of Mozambique has submitted to the Ministry of Economy and Finance a draft bill on financial institutions which, if enacted, would provide substantial compliance with the first Disbursement-Linked Indicator. 3/25/2020 Page 1 of 9 The World Bank Implementation Status & Results Report Mozambique: Financial Inclusion and Stability Project (P166107) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial Substantial Substantial Macroeconomic Substantial Substantial Substantial Sector Strategies and Policies Low Low Low Technical Design of Project or Program High High High Institutional Capacity for Implementation and Substantial Substantial Substantial Sustainability Fiduciary Substantial Substantial Substantial Environment and Social Low Moderate Moderate Stakeholders Low Low Low Other -- -- Moderate Overall Substantial Substantial Substantial Results PDO Indicators by Objectives / Outcomes Increasing usage of transaction accounts and access to finance for MSMEs IN00816409 ►Teachers in rural areas with access to a mobile money account (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 13.00 13.00 13.00 25.00 Date 31-Dec-2017 21-Mar-2019 21-Mar-2019 31-Dec-2023 Percentage of teachers working in public schools in rural areas (as defined by the national statistics Comments: institute) that have a registered transaction account with a mobile money operator IN00816411 Teachers in rural areas with access to a mobile money accoubt (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 9,100.00 9,100.00 9,100.00 17,500.00 IN00816412 3/25/2020 Page 2 of 9 The World Bank Implementation Status & Results Report Mozambique: Financial Inclusion and Stability Project (P166107) ►Targeted recipients of government transfers that make or receive digital payments (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 25.00 Date 30-Sep-2018 21-Mar-2019 21-Mar-2019 31-Dec-2023 The percentage of recipients of government transfers (disaggregated by target groups, such as urban/rural, gender, teachers, lifelong learning facilitators, or social benefits recipients) who report using mobile money, a debit or credit card, or a mobile phone to make a payment from an account, or report using the internet to pay bills or to buy something online, in the past 12 months. It also includes Comments: respondents who report paying bills, sending or receiving remittances, receiving payments for agricultural products, receiving government transfers, receiving wages, or receiving a public sector pension directly from or into a financial institution account or through a mobile money account in the past 12 month (% age 15+) IN00816413 Life-long learning facilitators (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 2,500.00 IN00816414 Life-long learning facilitators (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 25.00 IN00816415 Beneficiaries of social transfers in urban areas (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 5,000.00 IN00816416 Beneficiaries of social transfers in urban areas (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 20.00 IN00816417 Beneficiaries of social transfers in rural areas (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 10,000.00 IN00816418 Beneficiaries of social transfers in rural areas (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 10.00 IN00816419 ►Adults making or receiving digital payments in the past year (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target 3/25/2020 Page 3 of 9 The World Bank Implementation Status & Results Report Mozambique: Financial Inclusion and Stability Project (P166107) Value 34.00 34.00 34.00 42.00 Date 31-Dec-2017 21-Mar-2019 21-Mar-2019 31-Dec-2023 The percentage of respondents who report using mobile money, a debit or credit card, or a mobile phone to make a payment from an account, or report using the internet to pay bills or to buy something online, in the past 12 months. It also includes respondents who report paying bills, sending or receiving remittances, Comments: receiving payments for agricultural products, receiving government transfers, receiving wages, or receiving a public sector pension directly from or into a financial institution account or through a mobile money account in the past 12 months. IN00816420 Women (Percentage, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 27.00 27.00 27.00 40.00 Date 31-Dec-2017 21-Mar-2019 21-Mar-2019 31-Dec-2023 IN00816421 Men (Percentage, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 42.00 42.00 42.00 50.00 Date 31-Dec-2017 21-Mar-2019 21-Mar-2019 31-Dec-2023 IN00816422 Poorest 40% of the population (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 20.00 20.00 20.00 28.00 IN00816423 ►Active mobile money agents (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 25,000.00 25,000.00 25,000.00 50,000.00 Date 31-Dec-2016 21-Mar-2019 21-Mar-2019 31-Dec-2023 Comments: Certified agents of electronic money institutions. IN00816424 Districts covered by active mobile money agents (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 77.00 77.00 77.00 90.00 IN00816425 ►MSMEs that received loans secured by movable assets registered in the collateral registry (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 3,750.00 3/25/2020 Page 4 of 9 The World Bank Implementation Status & Results Report Mozambique: Financial Inclusion and Stability Project (P166107) Date 30-Sep-2018 21-Mar-2019 21-Mar-2019 31-Dec-2023 Number of individual entrepreneurs and legal entities classified as micro, small, or medium enterprise (as per the existing legislation) that have received a credit from a financial institution that has registered in the Comments: collateral registry a security interest of a movable asset given as collateral by the borrower (individual entrepreneur and legal entity). Strengthening financial safety nets IN00816410 ►Size of the deposit insurance fund as a share of total deposits (without contributions from other development partners) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.05 0.05 0.05 0.25 Date 31-Aug-2018 21-Mar-2019 21-Mar-2019 31-Dec-2023 The fund size is the market value in local currency of the DGF assets. The value of total deposits is the Comments: local currency value of the deposits in the banking system. The indicator excludes potential contributions by development partners other than the World Bank. Overall Comments PDO The first year of implementation is yet to be completed. The PIU is in the process of recruiting a monitoring and evaluation specialist, which will be in charge of monitoring these indicators. Collection of information for some of the indicators will likely require a survey. Intermediate Results Indicators by Components Increasing usage of transaction accounts and access to finance for MSMEs IN00816426 ►IT solution that enables Treasury to interface with e-money payment systems installed and operational (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 30-Sep-2018 21-Mar-2019 21-Mar-2019 30-Jun-2021 The Government's financial management system (eSistafe) is expected to be able to make payments Comments: directly into a mobile account. Currently, the system can only make payments to bank accounts. IN00816428 ►Individuals benefitting from financial literacy awareness program (Number (Thousand), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 1,000.00 Date 30-Sep-2018 21-Mar-2019 21-Mar-2019 31-Dec-2023 Number of individuals that attended a financial education session or event or received specific training on Comments: the use of a new payment technology or money management. These events should last at least 15 minutes. IN00816430 3/25/2020 Page 5 of 9 The World Bank Implementation Status & Results Report Mozambique: Financial Inclusion and Stability Project (P166107) ►Recipients of government transfers reporting satisfaction with the digitized payment method(s) (citizen engagement) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 66.00 Date 30-Sep-2018 21-Mar-2019 21-Mar-2019 31-Dec-2023 IN00816432 ►A centralized, web-based collateral registry established and operational (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 30-Sep-2018 21-Mar-2019 21-Mar-2019 30-Jun-2021 A registry for security interests in movable property that is accessible through web and is centrally Comments: managed by an authorized body of the Government. Strengthening financial safety nets IN00816427 ►Strengthened bank recovery resolution framework (Yes/No, Custom, DLI) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 30-Sep-2018 21-Mar-2019 21-Mar-2019 30-Jun-2020 Comments: Described in the DLI Verification Protocol IN00816429 ►Improved DGF’s ability to undertake deposit insurance functions (Yes/No, Custom, DLI) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 30-Sep-2018 21-Mar-2019 21-Mar-2019 31-Dec-2023 Comments: Described in the DLI Verification Protocol IN00816431 ►Expanded coverage of deposit insurance (Yes/No, Custom, DLI) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 30-Sep-2018 21-Mar-2019 21-Mar-2019 30-Jun-2021 Comments: Described in the DLI Verification Protocol IN00816433 3/25/2020 Page 6 of 9 The World Bank Implementation Status & Results Report Mozambique: Financial Inclusion and Stability Project (P166107) ►Insurance companies among the five largest with integrated connections to the supervisory reporting system (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 3.00 Date 30-Sep-2018 21-Mar-2019 21-Mar-2019 31-Dec-2023 Number of insurance companies (among the five largest by assets) that have a direct application Comments: programming interface with the supervisory reporting system for data transmission to the insurance regulator. Overall Comments IR The first year of implementation is yet to be completed. The PIU is in the process of recruiting a monitoring and evaluation specialist, which will be in charge of monitoring these indicators. Collection of information for some of the indicators will likely require a survey. Disbursement Linked Indicators IN00816434 ►DLI 1 Strengthened bank recovery resolution framework (Yes/No, Output, 4,000,000.00, 10.00%) Baseline Actual (Previous) Actual (Current) Year 3 Value No No No -- Date -- 21-Mar-2019 21-Mar-2019 -- IN00816435 ►DLI 2 Improved DGF’s ability to undertake deposit insurance functions (Yes/No, Output, 4,000,000.00, 10.00%) Baseline Actual (Previous) Actual (Current) Year 3 Value No No No -- Date -- 21-Mar-2019 21-Mar-2019 -- IN00816436 ►DLI 3 Expanded coverage of deposit insurance (Yes/No, Intermediate Outcome, 4,000,000.00, 10.00%) Baseline Actual (Previous) Actual (Current) Year 3 Value No No No -- 3/25/2020 Page 7 of 9 The World Bank Implementation Status & Results Report Mozambique: Financial Inclusion and Stability Project (P166107) Date -- 21-Mar-2019 21-Mar-2019 -- Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P166107 IDA-D4050 Effective USD 40.00 40.00 0.00 2.11 37.48 5.3% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P166107 IDA-D4050 Effective 13-Dec-2018 01-Feb-2019 29-Aug-2019 30-Jun-2024 30-Jun-2024 Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) 3/25/2020 Page 8 of 9 The World Bank Implementation Status & Results Report Mozambique: Financial Inclusion and Stability Project (P166107) There are no related projects. 3/25/2020 Page 9 of 9