The World Bank Report No: ISR13986 Implementation Status & Results Egypt, Arab Republic of Egypt Enhancing Access to Finance for Micro and Small Enterprises (P116011) Public Disclosure Copy Operation Name: Egypt Enhancing Access to Finance for Micro and Small Project Stage: Implementation Seq.No: 8 Status: ARCHIVED Archive Date: 22-Jun-2014 Enterprises (P116011) Country: Egypt, Arab Republic of Approval FY: 2010 Product Line: IBRD/IDA Region: MIDDLE EAST AND NORTH AFRICA Lending Instrument: Financial Intermediary Loan Implementing Agency(ies): The Social Fund for Development Key Dates Board Approval Date 09-Mar-2010 Original Closing Date 31-Dec-2015 Planned Mid Term Review Date 03-Mar-2013 Last Archived ISR Date 30-Dec-2013 Effectiveness Date 19-Aug-2010 Revised Closing Date 31-Dec-2015 Actual Mid Term Review Date 14-Oct-2012 Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project's development objective is to contribute to increased access to finance for micro and small enterprises on a sustainable and commercial basis, thus promoting growth, job creation, and an inclusive financial system, as well as ease the impact of the global economic crisis on micro and small enterprises. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Line of Credit for Microfinance 150.00 Line of Credit for Small Enterprise Finance 150.00 Overall Ratings Previous Rating Current Rating Public Disclosure Copy Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Moderate Moderate Implementation Status Overview The Bank team was pleased with the progress made in the implementation of this operation, which has become even more important for Egypt in the post-revolution context. By ensuring commercially sustainable micro and small enterprise (MSE) lending, the operation contributed to the creation of private sector jobs for the most disadvantaged segments of the society—women and youth, and in the underserved Governorates and poor villages. The number of jobs created, as of February 2014, is over 150,000 jobs of which more than 50,000 are through small enterprises, and over 75,000 jobs through micro enterprises component. Women represent, on average, 28 percent of project beneficiaries. In light of regional disparities, the project allocated approximately 40 percent of the value of disbursed loans to previously underserved Governorates and poor villages, with a focus on Upper Page 1 of 5 The World Bank Report No: ISR13986 Egypt that alone accounts for 35 percent. Despite the challenging environment and political and economic uncertainty, disbursement has remained ahead of the projected schedule. The total amount disbursed from the Bank to SFD is US$ 259 million, accounting for 86 percent of the total loan amount. More importantly, is that 74 percent reached the end beneficiaries MSEs, with effective targeting of Public Disclosure Copy women and youth. Moreover, the remaining US$ 41 million are committed as evident in the contracts signed between the Social Fund for Development (SFD) and the pa ticipating financial intermediaries. The loan is expected to disburse fully by December 2014. Management continued their efforts in modernizing and restructuring SFD, to foster its pivotal role in developing the MSE sector, and in creating jobs. New departments and units were established, including a Gender Unit, Monitoring and Evaluation (M&E) Unit, and Safeguard Unit. In addition, branches in the various Governorates were strengthened and their capacities built to improve outreach and the quality of services. The governance structure has been strengthened, the Board composition now includes representation from the private sector, civil society, NGOs, and youth. Moreover, SFD has migrated to e-disbursements for the electronic submission of all withdrawal applications to the Bank. All this has contributed to improving the performance of SFD in project implementation, and more effective targeting. SFD finalized the National Strategy for MSEs Development with the support of development partners, in consultation with all stakeholders (private sector, civil society, NGOs,-MFIs, banks, financial sector, CBE, EFSA, and GAFI), and in coordination with donors to incorporate international best practices. The Strategy was launched under the new Government, and approved in July 2013. Locations No Location data has been entered Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Increase in total number of MSE loans in Percentage Value 0.00 19.00 20.00 participating financial institutions Date 30-Jun-2009 02-Jul-2013 30-Jun-2015 Comments Increase in number of female MSEs with Percentage Value 15.00 25.00 30.00 access to finance Date 30-Jun-2009 02-Jul-2013 30-Jun-2015 Comments Increase in total volume of outstanding MSE Percentage Value 0.00 32.00 27.00 Public Disclosure Copy portfolio of participating financial institutions Date 30-Jun-2009 02-Jul-2013 30-Jun-2015 Comments Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Number of small enterprise clients Number Value 1000.00 2858.00 25000.00 Date 30-Jun-2009 02-Jul-2013 30-Jun-2015 Comments Page 2 of 5 The World Bank Report No: ISR13986 Portfolio at risk for participating banks (90 Text Value 0 less than 5% days) Date 30-Jun-2009 02-Jul-2013 30-Jun-2015 Comments Public Disclosure Copy Number of banks engaged in small enterprise Number Value 7.00 7.00 10.00 lending Date 30-Jun-2009 02-Jul-2013 30-Jun-2015 Comments Volume of small financing from the line of credit Text Value 0 1,350 LE million to participating financial institutions Date 30-Jun-2009 02-Jul-2013 30-Jun-2015 Comments Number of new initiatives developed to foster Number Value 0.00 2.00 2.00 small enterprise lending Date 30-Jun-2009 02-Jul-2013 30-Jun-2015 Comments Number of female-owned small enterprises Number Value 0.00 581.00 5400.00 served under the line of credit Date 30-Jun-2009 02-Jul-2013 30-Jun-2015 Comments Overall small enterprise portfolio of Text Value 1,706 LE million 8,429 LE million participating lenders Date 30-Jun-2009 02-Jul-2013 30-Jun-2015 Comments SFD small enterprise portfolio Text Value 1,900 LE million 4,400 LE million Date 30-Jun-2009 02-Jul-2013 30-Jun-2015 Comments Overall microfinance portfolio of participating Text Value 1,800 LE thousand 7,500 LE thousand lenders Date 30-Jun-2009 02-Jul-2013 30-Jun-2015 Comments Number of banks engaged in microfinance Number Value 0.00 3.00 3.00 lending Date 30-Jun-2009 02-Jul-2013 30-Jun-2015 Public Disclosure Copy Comments Number of alternative microfinance prodects Number Value 0.00 1.00 developed and piloted Date 02-Jul-2013 30-Jun-2015 Comments Number of microenterprise clients Number Value 62594.00 91000.00 Date 02-Jul-2013 30-Jun-2015 Comments Page 3 of 5 The World Bank Report No: ISR13986 Portfolio at risk for participating MFIs and Text Value less than 5% banks (30 days) Date 02-Jul-2013 30-Jun-2015 Comments Public Disclosure Copy Total SFD microfinance portfolio Text Value 1,632 LE million 4,500 LE million Date 30-Jun-2009 02-Jul-2013 30-Jun-2015 Comments Number of female-owned micro enterprises Number Value 0.00 17573.00 27000.00 served under the line of credit Date 30-Jun-2009 02-Jul-2013 30-Jun-2015 Comments Volume of micro financing from the line of Text Value 0 450.78 LE million credit to participating financial institutions Date 30-Jun-2009 02-Jul-2013 30-Jun-2015 Comments Person Days of Employment Created Days Value 0.00 13320000.00 4000000.00 Date 30-Jun-2013 31-Jan-2014 30-Jun-2015 Comments Data on Financial Performance (as of 18-Feb-2014) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P116011 IBRD-78500 Effective 09-Mar-2010 25-Mar-2010 19-Aug-2010 31-Dec-2015 31-Dec-2015 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P116011 IBRD-78500 Effective USD 300.00 300.00 0.00 259.25 40.75 86.00 Disbursement Graph Public Disclosure Copy Page 4 of 5 The World Bank Report No: ISR13986 Public Disclosure Copy Key Decisions Regarding Implementation SFD will continue to closely monitor all contracts and disbursements especially with the relatively new entrants into such financing. Restructuring History Level two Approved on 01-May-2013 Related Projects There are no related projects. Public Disclosure Copy Page 5 of 5