Annex 1: Results Framework and Monitoring MOROCCO: Microfinance Development Project Results Framework Project Development Objective (PDO): The project objective is to promote access to finance to low income households and micro and small enterprises through the promotion of a sustainable and inclusive microfinance sector. PDO Level Results Indicators* Core Unit of Measure Baseline (Dec 2012) Cumulative Target Values** Frequency Data Source/ Methodology Responsibility for Data Collection Description (indicator definition etc.) YR 1 YR 2 YR3 YR4 Indicator One: % of adults (and women) with an account at a formal financial institution, including low income households Percent increase (percent female in brackets) 0 (0) 2% (2%) 5% (5%) 10% (11%) 12% (15%) Bi-annually BAM PMU (MoEF) Access to formal financial inclusion is a core indicators of relative financial inclusion levels in a given country Indicator Two: Outstanding Microfinance Loan Portfolio USD mn 550 (4’589’185 MAD) 560 570 580 590 BAM PMU (MoEF) Volume of outstanding microloans Indicator Three: Number of active loan accounts - Microfinance Number 804,000 830,000 900,000 1,000,000 1,100,000 BAM PMU (MoEF) This indicator includes loan accounts held by low-income households, microenterprises and small firms. Indicator Four: Portfolio at Risk - Microfinance Percent 6.7% -- 6.6% 6.5% 6.4% BAM PMU (MoEF)
INTERMEDIATE RESULTS Intermediate Results (Component One): Strengthening the institutional, legal, regulatory, tax and governance framework for microfinance Intermediate Result indicator One: Regulatory studies completed Number 0 0 1 2 3 Annually PMU (MoEF) PMU (MoEF) Intermediate Result indicator Two: Number of operational and regulatory initiatives implemented by BAM and other key stakeholders Number 0 0 0 1 3 Annually PMU (MoEF) PMU (MoEF) Intermediate Results (Component two): Strengthening the market infrastructure, product innovation and funding sources for microfinance Intermediate Result indicator One: Number of alternative microfinance products developed and piloted (e.g. Islamic finance, mobile phone banking, housing) Number 0 0 1 2 3 Quarterly PMU (MoEF) PMU (MoEF) Intermediate Result indicator Two: Number of trainings to micro entrepreneurs delivered Number 0 500 700 900 1100 CM6 Centre Mohammed 6; PMU (MoEF) Intermediate Result indicator One: Financial inclusion completed Binary (Yes/No) No Yes Once BAM PMU (MoEF) Intermediate Result indicator Two: Evaluation completed of existing financial inclusion measures Binary (Yes/No) No Yes - - Once BAM PMU (MoEF)
Annex 4: Operational Risk Assessment Framework (ORAF) MOROCCO: Microfinance Development Project Stage: Approval Project Stakeholder Risks Rating Moderate Description: (i) Agencies receiving technical assistance may not have the institutional capacity to effectively absorb project resources. This may prevent effective translation of capacity building to changes to institutional policies and procedures and may prevent project outputs from being attained. Risk Management: The project will only extend technical assistance to entities which are considered to be sufficiently prepared of integrating the changes. In a number of components, TA is preceded by a diagnostic effort to measure the status quo and highlight structural aspects/ weaknesses which need to be addressed before any assistance can be provided. Resp: Bank Stage: Preparation/Implementation Due Date : Status: In progress (ii) A number of donors supporting the microfinance sector in Morocco are engaged in capacity building work, leaving a potential risk of duplication/ lack of coordination Risk Management: The Bank has conducted extensive consultations with key donors engaged in Morocco’s microfinance sector during project preparation, and will continue to do so throughout the implementation period to ensure that this projects contribution is harmonized and complementary with existing initiatives and activities. Resp: Bank and Client Stage: Preparation/Implementation Due Date : Status: In progress (iii) There is a risk that the MFIs might not be supportive of the proposed capacity building of the FNAM, other MFIs or microenterprises. Risk Management: Project outreach during both preparation and implementation phases will focus on clearly communicating project activities and proposed benefits to participating MFIs and other financial institutions serving low-income communities in Morocco. The project has been developed in close consultations with MFIs, which have provided useful inputs to the project’s design. Resp: Bank and Client Stage: Preparation/Implementation Due Date : Status: In progress Implementing Agency Risks (including fiduciary) Capacity Rating: High Description: The MoEF may not have the necessary dedicated Risk Management: The WB team has assessed the institutional capacity of the MoEF and identified