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Support Project for Youth Employability And AFRICAN DEVELOPMENT BANK AFRICAN DEVELOPENT FUND Public Disclosure Authorized PROJECT: SUPPORT PROJECT FOR YOUTH EMPLOYABILITY AND INTEGRATION IN GROWTH SECTORS COUNTRY: TOGO PROJECT APPRAISAL REPORT Public Disclosure Authorized OSHD DEPARTMENT October 2015 Translated Document TABLE OF CONTENTS Project Summary ..................................................................................................................... vii I. Strategic Thrust and Rationale ........................................................................................... 1 1.1 Project Linkages with Country Strategy and Objectives............................................. 1 1.2 Rationale for Bank’s Involvement .............................................................................. 2 1.3 Aid Coordination ......................................................................................................... 4 II. Project Description ............................................................................................................ 5 2.1 Project Components .................................................................................................... 5 2.2 Technical Solutions Retained and Other Alternatives Explored ................................. 6 2.3 Project Type ................................................................................................................ 6 2.4 Project Cost and Financing Arrangements.................................................................. 6 2.5 Project Target Area and Beneficiaries......................................................................... 8 2.6 Participatory Approach for Project Identification, Design and Implementation….....8 2.7 Bank Group Experience, Lessons Reflected in Project Design. ................................. 9 2.8 Key Performance Indicators ........................................................................................ 9 III. Project Feasibility ............................................................................................................. 10 3.1 Economic and Financial Performance ....................................................................... 10 3.2 Environmental and Social Impact ............................................................................. 11 IV. Implementation ................................................................................................................. 12 4.1 Implementation Arrangements .................................................................................. 12 4.2 Financial Management .............................................................................................. 14 4.3 Project Monitoring ................................................................................................... 14 4.4 Governance ................................................................................................................ 15 4.5 Sustainability ............................................................................................................. 15 4.6 Risk Management and Mitigation ............................................................................. 16 4.7 Knowledge Building..................................................................................................16 V. Legal Framework ............................................................................................................... 16 5.1 Legal Instrument........................................................................................................ 16 5.2 Conditions Associated with Bank’s Intervention ...................................................... 16 5.3 Compliance with Bank Policies ................................................................................ 17 VI. RECOMMENDATION .................................................................................................... 17 LIST OF ANNEXES Annex I : Comparative Socio-Economic Indicators of Togo Annex II : Table of AfDB Portfolio in Togo Annex III : Key Related Projects Financed by other Development Partners Annex IV : Mainstreaming of Gender-related Challenges in Project Annex V : Map of Togo Currency Equivalents July 2015 Currency Unit = CFA franc UA 1 = CFAF 824.5 Fiscal Year January – December i Acronyms and Abbreviations ADF African Development Fund AFD French Development Agency ANPE National Employment Agency ANPGF National Agency for Promoting and Guaranteeing Financing for SME/SMI AVC Agricultural Value Chain BPW Building and Public Works CSP Country Strategy Paper CWIQ Core Welfare Indicators Questionnaire DFS Decentralized Financial System ETD Enterprises, Territories and Development (Entreprises, Territoires et Développement) FAIEJ Youth Economic Initiative Support Fund FECECAV Umbrella Organization of Village Savings and Credit Associations FI Financial Institution FNFI National Inclusive Finance Fund FRR Financial rate of return FUCEC Federation of Savings and Credit Cooperative Unions GDP Gross Domestic Product GIZ German Technical Cooperation Agency GNI Gross National Income ICT Information and Communication Technologies IFAD International Fund for Agricultural Development IFC International Finance Corporation ILO International Labour Office M&E Monitoring and Evaluation MAEP Ministry of Agriculture, Livestock and Fisheries MDBAJEJ Ministry of Grassroots Development, Crafts, Youth and Youth Employment MEIA Ministry of Livestock and Animal Industries MFI Microfinance Institution MUFEC Women’s Mutual Savings Credit Union NEPAD New Partnership for Africa’s Development NGO Non-Governmental Organization NPV Net Present Value NTF Nigeria Trust Fund OEF Training and Employment Observatory PADAT Agricultural Development Support Project PAEIJ -SP Support Project for Youth Employability and Integration in Growth Sectors PASA Agricultural Sector Support Programme PCR Project Completion Report PFIs Partner Financial Institutions PNIASA National Programme for Agricultural Investment and Food Security PNPER National Rural Entrepreneurship Promotion Project PRADEB Grassroots Development Support Programme PSNEJ National Strategic Plan for Youth Employment RESEN Government Reports on National Education Systems SCAPE Accelerated Growth and Employment Promotion Strategy SME Small and Medium Enterprises SMI Small and Medium Industries SPPO Service Provider and Producer Organizations TFMU Technical Fund Management Unit TFP Technical and Financial Partner TSF Transition Support Facility U-CMECS Union of Mutual Savings and Credit Funds of the Savannah Region UNDP United Nations Development Programme URCLEC Renovated Union of Local Savings and Credit Funds UTB Union Bank of Togo (Union Togolaise de banque) VT Vocational Training WAAPP-Togo West Africa Agricultural Productivity Programme-Togo WADB West African Development Bank WAEMU West African Economic and Monetary Union WAGES Women’s Association for Economic and Social Well-Being WB World Bank ii Project Information Sheet Client Information BORROWER: Togolese Republic EXECUTING AGENCY: Ministry of Grassroots Development, Crafts, Youth and Youth Employment (MDBAJEJ) Financing Plan Source Amount (UA) Instrument ADF 6.67 million ADF Grant TSF 1.33 million TSF Grant NTF 6.5 million NTF Loan Government 0.77 million Counterpart Funds TOTAL COST 15.27 million AfDB Key Financing Information Grant Amount UA 8 million Loan Amount UA 6.5 million Interest Type* NA Interest Rate Spread* NA Commitment Fee* 0.5% Service Charge 0.75% Tenor 20 years Grace Period 7 years FRR 29% NPV (baseline scenario) CFAF 5.083 billion Timeframe –Milestones (expected) Concept Note Approval May 2015 Project Approval October 2015 Effectiveness December 2015 Last Disbursement December 2020 Completion December 2020 iii Results-Based Logical Framework Country and Project Name: Togo – Support Project for Youth Employability and Integration in Growth Sectors (PAEIJ-SP) Project Goal: Contribute to creating the conditions for a more inclusive economic growth by boosting youth employability and promoting entrepreneurship in growth sectors PERFORMANCE INDICATORS MEANS OF RISKS/MITIGATION RESULTS CHAIN Indicator VERIFI- Baseline Target MEASURES (including CSI) CATION 2011 2025 Employment and Contribute to inclusive growth and -Incidence of poverty 58.7% 49% Informal Sector poverty reduction W: 54.3% W:45% Survey and/or CWIQ survey IMPACT - Combined unemployment and underemployment rate M: 22% M: 16% among youth aged 15-34 years W: 31.9% W: 26% Outcome 1: Income of project 2015 2020 1 Risk 1: Deterioration of macroeconomic beneficiaries are increased -% increase in beneficiary income 0 M, W: 25%, situation OMES PMU activity and Mitigation Measure 1: Continuation of Outcome 2: Youth integration into the - Number of direct jobs created by enterprises supported 0 In 2020: 19 600 (incl. project study ongoing economic reforms with the support labour market is improved 40% women) reports OUTC of Technical and Financial Partners Component 1: Development of entrepreneurial skills in growth sectors Output 1.1 Operational and effective 2015 2020 entrepreneurship support mechanism - Number of agro-processing SMEs supported 0 12 Risk 2: An unconducive business - Number of young entrepreneurs provided support in the 0 1200 (W: 50%) environment for small and microenterprises agricultural value chain (AVC) 0 14 280 (incl. W: 40% - Number of farmer groups supported and youth: 60%) PMU Reports Mitigation Measure 2: Institutional support 0 200 to improve the business environment. The - Number of women
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