Document of The World Bank Public Disclosure Authorized Report No: ICR00003873 IMPLEMENTATION COMPLETION AND RESULTS REPORT (TF-11812) ONA GRANT Public Disclosure Authorized IN THE AMOUNT OF US$9 MILLION TOTHE REPUBLIC OF SOUTH SUDAN FORA PRIVATE SECTOR DEVELOPMENT PROJECT Public Disclosure Authorized September 10, 201 7 Finance and Markets Global Practice Africa Region Public Disclosure Authorized CURRENCY EQUIVALENTS (Exchange Rate Effective June 30, 2017) Currency Unit= South Sudanese Pound (SSP) SSP 1.00 = US$ 0.0088 US$ 1.00 = SSP 113.50 FISCAL YEAR January 1 - December 31 ABBREVIATIONS AND ACRONYMS AF Additional Financing BDS Business Development Services BPC Business Plan Competition BSC Business Start-up Competition CEN Country Engagement Note CPA Comprehensive Peace Agreement DO Development Objective GDP Gross Domestic Product EAC East African Community EOI Expressions of Interest FIRST Financial Institutions Reform and Strengthening Initiative FSSL Finance South Sudan Limited GoNU Government of National Unity GoSS Government of South Sudan IDA International Development Agency IMF International Monetary Fund IP Implementation Progress ISN Interim Strategy Note ISR Implementation Status and Results Report KCB Kenya Commercial Bank MCII Ministry of Commerce, Industry, and Investment MDTF-SS Multi-Donor Trust Fund for South Sudan M&E Monitoring and Evaluation MFI Micro Finance Institution MIS Management Information Systems MoFP Ministry of Finance and Economic Planning MoTII Ministry of Trade, Industry and Investment MTR Mid-Term Review NGO Non-Governmental Organization PAD Project Appraisal Document PC Project Coordinator PCU Project Coordination Unit PDO Project Development Objective PFMU Project Financial Management Unit PSD Private Sector Development PSDP Private Sector Development Project SOE State-Owned Enterprise SSBF South Sudan Business Forum SSDP South Sudan Development Plan SSMDF South Sudan Micro Finance Development Facility SSP South Sudan Pound SSTTF South Sudan Transition Trust Fund SUMI Sudan Microfinance TGNU Transitional Government of National Unity TOR Terms of Reference TTL Task Team Leader USAID United States Agency for International Development vc Video Conference WDR World Development Report Senior Global Practice Director: Ceyla Pazarbasioglu-Dutz Sector Manager: James Seward Project Team Leader: Michael Corlett ICR Team Leader: Michael Corlett REPUBLIC OF SOUTH SUDAN Private Sector Development Project CONTENTS Data Sheet A. Basic Information B. Key Dates C. Ratings Summary D. Sector and Theme Codes E. Bank Staff F. Results Framework Analysis G. Ratings of Project Performance in ISRs H. Restructuring I. Disbursement Graph 1. Project Context, Development Objectives and Design 1 2. Key Factors Affecting Implementation and Outcomes 1 3. Assessment of Outcomes 2 4. Assessment of Risk to Development Outcome 2 5. Assessment of Bank and Borrower Performance 3 6. Lessons Learned 3 7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners 3 Annex 1. Project Costs and Financing 4 Annex 2. Outputs by Component. 5 Annex 3. Economic and Financial Analysis 6 Annex 4. Bank Lending and Implementation Support/Supervision Processes 7 Annex 5. Beneficiary Survey Results : 8 Annex 6. Stakeholder Workshop Report and Results 9 Annex 7. Summary of Borrower's ICR and/or Comments on Draft ICR 10 Annex 8. Comments of Cofinanciers and Other Partners/Stakeholders 11 Annex 9. List of Supporting Documents 12 The World Bank (P128239) A. BASIC INFORMAT.ION South Sudan Private Sector Country: South Sudan Project Name: Development Project Project ID: P128239 L/C/TF Number(s): TF-11812 ICR Date: 08/10/2017 ICR Type: Core ICR GOVERNMENT OF SOUTH Financing Instrument: ERL Borrower: SUDAN Original Total USO 9.00M Disbursed Amount: USO 9.00M1 Commitment: Revised Amount: USO 9.00M Environmental Category: B Implementing Agencies: Ministry of Trade, Industry and Investment, Bank of South Sudan Cofinanciers and Other External Partners: B. KEV DATES Process Date Process Original Date Revised / Actual Date(s) Concept Review: 08/30/2011 Effectiveness: 09/14/2012 08/01/2012 11/06/2014 Appraisal: 08/31/2011 Restructuring(s): 11/30/2015 Approval: 01/10/2012 Mid-term Review: 09/25/2014 09/25/2014 Closing: 11/30/2014 06/01/2016 C. RATINGS SUMMARY C.1 Performance Rating by ICR Outcomes: Moderately Unsatisfactory I Risk to Development Outcome: High Bank Performance: Moderately Unsatisfactory Borrower Performance: Unsatisfactory C.2 Detailed Ratings of Bank and Borrower Performance (by ICR) Bank Ratings Borrower Ratings Quality at Entry: Moderately Unsatisfactory Government: Unsatisfactory 1 A refund of ineligible expenditures is currently outstanding and will likely result in a final disbursement of US$7.2 million. The World Bank (P128239) Implementing Quality of Supervision: Moderately Unsatisfactory Moderately Unsatisfactory Agency/Agencies: Overall Bank Overall Borrower Moderately Unsatisfactory Unsatisfactory Performance: Performance: C.3 Quality at Entry and Implementation Performance Indicators Implementation Indicators QAG Assessments (if any) Rating Performance Potential Problem Project No Quality at Entry (QEA): None at any time (Yes/No): Problem Project at any Quality of Supervision No None time (Yes/No): (QSA): DO rating before Moderately Satisfactory Closing/Inactive status: D." SECTOR AND THEME CODES Original Actual Major Sector/Sector Public Administration Public administration - Financial Sector 17 17 Financial Sector Public Administration - Financial Sector 17 17 Other Non-bank Financial Institutions 21 21 Microfinance 31 31 SME Finance 49 49 Payments, settlements, and remittance systems 2 2 Banking Institutions 60 60 Industry, Trade and Services Trade 1 1 Services 1 1 Major Theme/Theme/Sub Theme Finance Financial Infrastructure and Access 40 40 MSME Finance 40 40 Private Sector Development ii The World Bank (P128239) Business Enabling Environment 19 19 Investment and Business Climate 17 17 Regulation and Competition Policy 2 2 Enterprise Development 40 40 MSME Development 40 40 Jobs 100 100 Regional Integration 1 1 E. BANK STAFF Positions AtlCR At Approval Regional Vice President: Makhtar Diop Obiageli Katryn Ezekwesili Bella Bird Country Director: Carolyn Turk Practice Manager: James Seward Michael Fuchs Andres Garcia Task Team Leader(s): Michael Corlett ICR Team Leader: Michael Corlett Senior Global Practice Director: Ceyla Pazarbasioglu-Dutz ICR Primary Author: JohnP. Byamukama F. RESULTS FRAMEWORK ANALYSIS Project Development Objectives (from Project Appraisal Document) The PDO is to improve access to finance for private sector development and increase employment opportunities in South Sudan. Revised Project Development Objectives (as approved by original approving authority) (a) PDQ lndicator(s) Original Target Formally Actual Value Achieved Values (from Indicator Baseline Value Revised Target at Completion or approval Values Target Years documents) iii The World Bank (P128239) Indicator 1 : Number of jobs generated by enterprises supported by the Business competitons sub• grants Value quantitative or 98 250 1400 n/a Qualitative) Date achieved 09/30/2011 11/30/2014 06/01/2016 06/01/2016 Comments Not Achieved. Target was adjusted upwards following December 2013 conflict and decision (incl.% to expand scope of business competitions. Due to the late and incomplete disbursement of achievement) funds to business competition Awardees, only 483 businesses received funds out of 1,301 (424 for BSC, 59 for BPC). Furthermore, due to the conflict, MoTII has not been able to measure job creation of those businesses who received the award. Indicator 2 : Number of people with access to finance through targeted MFls and business competitions Value quantitative or 12,586 (M) and 34,160 14,560 (M) and 36,585 4,440 (M) and 6,660 (F) 1,883 (M) Qualitative) (F) (F) 2,635 (F) Adjusted to 2,616 (M) and 5546 (F) in November 2014 during the restructuring (see the comments section) Date achieved 09/30/2011 11/30/2014 06/01/2016 06/01/2016 Comments Not Achieved. During the restructuring on October 2014, the baseline was adjusted and (incl.% tmally revised, due to the fact that the two major MFls (BRAC and RUFI) ceased achievement) operations in South Sudan before project commencement. At project closing, the number of MFI clients was 4,035, down from 9,364 in December 2012 due to the conflict and ensuing economic downturn. Indicator 3 : Direct Project beneficiaries (Number of businesses supported through Business competitions Value 204 (M)279 quantitative or 20 (M) and 25 (F) 60 (M) and 85 (F) 440 (M) and 660 (F) (F) Qualitative) Date achieved 09/30/2011 11/30/2014 06/01/2016 06/01/2016 Comments Not achieved. The target covered both the business startup challenges and the business plan (incl.% competition. As noted above, only 483 out of 1,301 Awardees received funds. achievement) iv The World Bank (P128239) ac Indicator 4 : Number of people with access to finance through targeted MFls Value quantitative or 12,566 (M) and 14,500 (M) and 4000 (M) and 6000 (F) 1679 (M) Qualitative) . 34,135 (F) 36,500 (F) 2356 (F) The baseline was changed to 3049 (M) and 5,506 (F) Date achieved 09/30/2011 11/30/2014 06/01/2016 06/01/2016 Comments Not achieved. The baseline value was changed as the two largest MFls (BRAC and RUFI) {incl.% ceased operations in 2012. achievement) (b) Intermediate Outcome lndicator(s) Original Target Values (from Formally Revised Actual Value Achieved at Indicator Baseline Value approval Target Values Completion or Target