Document of The World Bank

Report No:

RESTRUCTURING PAPER

ON A

PROPOSED RESTRUCTURING OF THE GHANA - MICRO, SMALL AND MEDIUM ENTERPRISE PROJECT

{CREDIT NUMBER 4139-GH}

TO THE

REPUBLIC OF GHANA

MARCH 2, 2011

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ABBREVIATIONS AND ACRONYMS

BDS Business Development Services CEDECOM Central Region Development Commission CSCs Common Service Centers DCA Development Credit Agreement EPZ E xport Processing Zone GEPC GoG

Ghana Export Promotion Council Government of Ghana

GCIs G overnment Catalytic Interventions GICTed Ghana Information Communication Technologies Directorate ImC ICT

Implementation Committee Information, Communications and Technology

IDA International Development Association IFC I nternational Finance Corporation LOC Line of Credit MOTI Ministry of Trade and Industry MOU Memorandum of Understanding MSMEs Micro, Small and Medium Enterprises NBSSI National Board for Small Scale Industries PCU PCG

Project Coordination Unit Partial Credit Guarantee

PIM P roject Implementation Manual PSDS Private Sector Development Strategy PSOC Private Sector Oversight Committee SDR Special Drawing Rights SME TA

Small and Medium Enterprises Technical Assistance

WBG World Bank Group

Regional Vice President: Obiageli Katryn Ezekwesili Country Director: Ishac Diwan Sector Manager / Director: Paul Noumba UmMarilou U. Uy Task Team Leader: Kofi-Boateng Agyen

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GHANA

GHANA - MICRO, SMALL AND MEDIUM ENTERPRISE PROJECT P085006

CONTENTS

Page A.  SUMMARY................................................................................................................ 6 B.  PROJECT STATUS.................................................................................................. 7 C.  PROPOSED CHANGES .......................................................................................... 8 ANNEX 1: RESULTS FRAMEWORK AND MONITORING ................................ 122 ANNEX 2: KEY PERFORMANCE INDICATORS………………………………………………… 16 

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DATA SHEET

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SUMMARY This paper s eeks approval f rom the Country Director for a s econd-order r estructuring pl an for the Ghana Micro, Small and Medium Enterprises Project based on issues arising out of the pr oject’s M id-Term Review ( MTR) c ompleted i n D ecember 2009. S ubsequent t o t he completion of the MTR, Government of Ghana initially requested to cancel Sixteen Million US Dollars (US$16.0 M illion) f rom the undi sbursed Credit amount, how ever, after further consultations w ith th e le ad imp lementation M inistry, th e G overnment’s r equest th at a n amount of Ten Million US Dollars (US$10.0 Million) is canceled from the remaining Credit. As a result of implementation difficulties arising out of a number of constraints, ranging from p roject d esign challenges, le ngthy d elays in imp lementation d ue to c apacity deficiencies and a l eadership vacuum created as a result of the change in government in 2009, t he G overnment of G hana ha s now r equested: ( i) a pa rtial c ancellation i n t he amount of Ten (10.0) Million US Dollars (equivalent to SDR6,931,690) corresponding to 22% of the approved Credit amount); (ii) revisions to the original project with a view to correcting t he i dentified de ficiencies and enhancing t he l ikelihood o f achieving t he project’s developmental objectives; (iii) re-allocation of the remaining Credit amount for financing the restructured Project’s activities; and (iv) an extension of 18 months to allow for the completion of construction of the proposed ICT Park, implementation of the IDA-IFC A ccess to F inance collaboration and w ell-performing M atching G rant Facility. N o new activities will be introduced. The major modifications being therefore proposed include: (i) discontinuation o f th e c ondition th at b anks p articipating in th e P artial Credit

Guarantee (PCG) will not be eligible to participate in the Line of Credit (LOC) and vice versa;

(ii) modification of the description of the Project to take out activities which are yet to start or have been identified to have unclear links to the PDOs;

(iii) reallocation of uncommitted funds under the “pooled fund” component; (i) increase in the percentage of financing to 100%, as a result of the Government’s

inability to fully fund c ounterpart f unding commitments le ading to implementation delays;

(ii) revision of t he R esults Framework t o be tter r eflect t he r efocused pr ogram of activities and to better measure the Project Developmental Objective (PDO);

(iii) reduction of t he amount of t he C redit b y, and c ancellation of U S$10.0 million (equivalent t o S ix M illion, N ine H undred a nd Thirty O ne t housand a nd s ix hundred a nd ni nety S DR); G overnment i ntends t o us e t he c ancelled a mount towards the general pool for the support of priority and fast moving projects. We confirm t hat t here i s adequate funding t o f ully finance t he P roject a t 100% expenditures e ven after the r eduction of t he C redit a mount, a nd t hat w ith t his amendment t here would be s ignificant i mplementation pr ogress a s c ontracted individuals and firms will now be assured of full payment for services delivered;

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(iv) revision of t he pr oject’s i mplementation a nd i nstitutional a rrangements b y replacing the Private Sector Oversight Committee (PSOC) with a newly-formed Project S teering C ommittee ( PSC) a nd r evising th e P roject Implementation Manual ( PIM) t o, among ot her t hings, i nclude two ( 2) government a gencies Central Region Development Commission (CEDECOM) and National Board for Small Scale Industries (NBSSI) as co-implementers with the Ministry of Trade & Industry; and

(v) selective e xtension of t he pr oject’s c losing d ate b y 18 m onths t o a ssure completion of t he pr oposed ICT P ark, t he IDA-IFC A ccess t o F inance collaboration, and the Matching Grant Facility.

PROJECT STATUS The pr oject, w hich i s one of s even j oint International D evelopment ( IDA) a nd International Finance Corporation (IFC) MSME pilot Programs for Africa was approved on January 5th, 2006 and was effective May 2nd, 2006. The original loan was SDR 31.0 Million ( equivalent t o US$45,000,000). T he c urrent C losing D ate for t he C redit i s December 31, 2011, and this request seeks the first extension of the closing date. The pr oject c urrently complies w ith a ll l egal and f inancial covenants, and i s c urrently rated as moderately satisfactory on implementation progress and likelihood to achieve the PDO. These ratings are more l ikely to be upgraded to Satisfactory b y March 31, 2011, based on improved implementation progress and interim results realized. The MTR was concluded l ater t han s cheduled; w ith t he de lay du e m ainly t o P residential a nd Parliamentary e lections a nd t he s ubsequent c hange i n government. The t ransition contributed to c lose to 1 year o f imp lementation d elays in v iew o f th e time it to ok to appoint new government leaders to oversee the project. The MTR served as the platform for r evising t he pr oject t o be i n l ine w ith t he n ew government’s S mall a nd M edium Enterprise ( SME) a genda a nd a greeing ot her r evisions t hat w ould a ssist i ncrease t he likelihood of achieving the PDOs. As at December 31, 2010, a total of US$11.6 Million or about 24% of the Credit proceeds had been disbursed, with commitments amounting to an additional US$13.0 Million. Implementation progress would be upgraded to Satisfactory, based on the resolution of a number of issues that had hampered progress. Currently:

(i) IFC is ready to sign one more participating bank under the PCG facility, bringing the total number of banks to two. Intermediate outcomes being reported by the first ba nk t o s ign up t o t he s cheme i ndicate F ifty S ix ( 56) S MEs a re being supported under the facility one (1) year into its operation ;

(i). Eight (8) other commercial banks have expressed interest in accessing the Access to F inance ( A2F) i nstruments, t hree ( 3) of w hich m eet pr eliminary qu alifying criteria for the PCG and LoC facilities;

(ii). Over 200 S MEs h ave be nefitted from t he Business D evelopment Services scheme ( BDS)/Matching G rant Facility(MGF), w ith s ome o f t he b eneficiary

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SMEs gaining access to new markets, showing improved production and efficient administration processes, and are now equipped to better access credit;

(ii) On the basis of support provided under the Sub-Contracting Partnership Exchange (SPX) s cheme, t wenty t hree S MEs ha ve reportedly s ecured s ub-contracts f rom larger firms in the construction sector;

(iii)The government ha s no w s ecured access t o a n une ncumbered pl ot of l and t hat would f inally allow f or t he c onstruction of a n ICT P ark t o s upport S ME development in the IT sector, with the cost of consultancy services and needed infrastructure estimated at a bout US$10 M illion. D esign o f th e c ivil w orks is underway and construction is expected to start in fourth quarter of 2011;

(iv) Key pr iority s ectors ha ve be en i dentified a nd s upport f or M SMEs ope rating i n these sectors agreed;

(v) Support for reforms in the Business Environment have contributed to a reduction in the time it takes to register a business (5 days compared to 82 days a few years back);

(vi) Creation of a utomated c ommercial c ourts f or t he a djudication of c ommercial cases leading to a reduction in turnaround times;

(vii)Establishment o f f acilities f or c ertifying G hanaian-made p roducts f or b oth th e domestic and export markets; and

(viii)Staff upgrades within the project coordination unit which has significantly improved the procurement functions across all project implementing agencies.

PROPOSED CHANGES Project’s Development Objectives: The p roject’s de velopment obj ectives r emains unchanged, t hat i s, “ enhance t he competitive a nd e mployment l evels of G hanaian MSMEs”.

Results/Indicators: Project out comes a re unc hanged; how ever, t he out come i ndicators are being modified to better reflect the revised scope of the project. The changes in the Results Framework include: (a) tr ansforming the PDO indicators in to a set of Specific, Measurable, A ttributable, R elevant a nd T ime-bound ( SMART) i ndicators w hich r eflect the intentions and content of the original PDO; (b) consolidating and revising a number of i ndicators t o ensure t hey are relevant and c learly d efined; ( c) dropping a number of indicators t hat a ppear t o be of l ittle r elevance t o t he r evised pr oject, a nd/or l ack da ta sources; a nd ( d) pr oposing t wo s eparate l ists o f i ndicators: ( i) a l ist o f “ outcome” indicators a s p art o f th e R esult F ramework; and ( ii) a lis t o f “ output in dicators” to b e monitored and reported at the implementation level. Components:

Component 1: Access to Finance: To facilitate the expansion and improvement in the delivery of f inancial products and in r esponse t o r ecent developments i n SME f inance, commercial banks can under the restructured project apply for both the PCG and LOC,

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and qualify for any combinations of the Technical Assistance (TA) to Banks, and support to de velop a dditional f inancial i nstruments. T he F inancial S ector Board ha s a pproved revisions to the Access to Finance instruments, and Conflict of Interest issues have also been subsequently addressed. Component 2: Access to Markets, Trade Facilitation and Entrepreneurship Development: To more clearly link inputs to the sub-objective of assisting enterprises improve their ability to identify and take advantage of market opportunities, support will be focused on i dentified high priority/target sectors and in addition, management of the MGF would be strengthened to engender a more comprehensive response to the needs of MSMEs i n t he i dentified hi gh p riority s ectors. Other s pecific M atching G rant s upport would be provided to SMEs operating in the Tourism and the Creative Industries’ sector (Music, T heatre, Fashion D esign, a nd J ewelry) t o a ssist t heir a bilities t o e nter ne w markets, innovate and also gain access to credit. There are revisions i n t he s cope o f a num ber of a ctivities w hose i mplementation a re already unde rway: ( a) t he ICT Park to be constructed in t he Borrower’s Multi-Purpose Industrial P ark- ba sed on pr e-construction s tudies, t he c ost t o c onstruct t he agreed infrastructure and business and administrative buildings have been revised upwards; (b) initial imp lementation o f me asures id entified for th e e stablishment o f th e b usiness process out sourcing s ector; t raining a ctivities of t he K ofi A nnan ICT C enter of Excellence; s upport t o G hana Information C ommunication T echnologies D irectorate (GICTed); and capacity building for Ministry of Communication) have all been dropped. These a ctivities w ere n ot s tarted but a re c urrently be ing f inanced und er a n on- going Credit ( E-Ghana); ( c) s et-up of pi lot c ommon s ervice centers i s r evised to i nclude t he establishment o f C ommunity-Based R ural T echnology Facilities f or S MEs in a s elect number o f d istricts a nd in id entified p riority s ectors; ( d) th e s mall scale f urniture producer center would not be pursued as originally designed, support will now be limited to c ompleting a f easibility s tudy already s tarted; ( e) s upport f or th e s et-up a nd implementation of a c lothing t echnology a nd training c enter i n t he Multi-Purpose Industrial Park will also be dropped. Component 3: Business Environment: There are no r evisions t o t his component a nd would be m aintained a s or iginally designed. Undisbursed a nd un committed f unds w ill however be re-allocated.

Component 4: Project Implementation, Monitoring and Evaluation: To i mprove capacity w ithin a nd b etween P CU a nd IAs i n r espect of p rocurement pl anning, monitoring, c ontract a nd pr oject m anagement, coordination, a ccounting r econciliation, etc., the PCU’s Technical Capacity will be strengthened. This will also ensure a greater level of ups tream c o-operation on t he t echnical a spects of t he pr oject c omponents between t he P CU a nd IDA. N ew s taff w ill be e ngaged a nd t here w ill be a m ove t o quarterly pr ogress r eporting b y a ll i mplementing a gencies, i nvolving more de tailed technical/developmental, (proposed outline of quarterly reports provided in revised PIM). To address counterpart funds difficulties, the percentage of expenditures to be f inanced under the IDA credit is increased to 100%, in line with the approved Country Financing Framework for Ghana.

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Safeguards: There i s no c hange to the Environment Category assessed for the Project, which is Category B. Since there are no n ew activities introduced in the revised project, no safeguard policies would be triggered.

Institutional arrangements:�Under a ne w c onfiguration of G oG i nstitutional i nterface with t he pr ivate s ector, the r ole o f 2 government a gencies i s i mportant f or i mproving dialog and awareness creation, as such, NBSSI and CEDECOM will be included as co-implementing a gencies under t he T rade Information i nfrastructure s ub-component. T he revamped Implementation C ommittee ( ImC) ��� a newly-established �������� ������������������� ��� will b e ������������ ���� ���������� ���������� ���� ����� ������� ����������������������������������������������������������������������������� � ��������������� �������� ���� ������� ����� ����� ���� �������������� ������� ���� ������� ������������ ��� ���������� ��������� ��� ������ ��� ������� ��������� ������������������������������������������������� ���������������������������������������������������������������������������������������������������������������������������������������������� ��� ���� � ������ ������������� ���������������������������Financing: Credit proceeds will be re-allocated to reflect the newly agreed scope of the project. T he or iginal a mount of t he C redit w ill be r educed b y T en ( 10.0) M illion U S Dollars ( equivalent t o S DR 6.931 m illion) a nd cancelled f rom t he C redit. T he pa rtial cancellation amount will be re-committed to the general IDA pool for Ghana and towards support for fast moving projects. In view of Government’s inability to fully fund counterpart funding requirements, it has requested that all expenditures going forward be funded at 100%. There is no co-financing provided by other donors, and since effectiveness, government internally generated funds have been the only source of counterpart funds. We can confirm that there is adequate funding to fully finance the Project at 100% of expenditures even after the reduction of the Credit amount.

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The project costing based on activities agreed to be financed under the restructured project are as follows:

Project Costs (XDR) Description O riginal

Allocation Disbursed/committed C ancellation Proposed Re-

allocation Access to Finance

PCG 2.83 0.82 2.81 LoC Perf. Grant 1.45 1.29 0.16 Bank TA (BDS) 2.49 0.06 0.16 1.42 SME TA (BDS) 2.49 2.49 - Add. F inancial Instruments

0.45

Access to Markets, Entrepreneurship. Dev. & Trade Facilitation Infrastructure

(BDS/Integrated BDS

2.49 2.572 2.65

Priority sectors 0.32 0.15 0.16 0.16 SPX 0.19 0.10 0.06 0.12 Web Gallery 0.25 0.06 0.17 0.07 ICT Park 2.90 1.30 6.85 MoTI/GCIs 0.35 0.35 Furniture City 2.8 0.06 2.70 0.06 Garment/Textiles 0.62 0.36 0.26 Creation o f Common Service

0.28 0.75

Information System 2.00 0.03 1.732 0.26 Export promotion 0.28 0.24 0.035 0.24 Tourism dev. 0.35 0.16 0.188 0.16 Export round tables 0.35 0.345 0 Trade Houses 0.35 0.345 0 Trade f acilitation infrastructure

0.35 0.241 0.1

Business Environment Bus. Environment 3.11 1.244 1.87 1.24

Implementation, Monitoring & Evaluation Implement., M & E 2.00 2.61 Unallocated 2.902. 2.902 0 TOTAL (SDR M) 31.1 6.93 24.17

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Variations from the original project allocations as described above reflect the anticipated impact of t he r evised components, c urrent d evelopments i n t he M SME s ector a nd financial sector issues, specifically SME lending and banking sector developments, and the implementation capacity of beneficiary agencies over the remaining implementation period as well as the evolving agenda of the Government..

Based on t he partial cancellation and reduction in the amount of the Credit, Withdrawal of the Proceeds of the Credit will be as follows:

Financial Management: T here w ill be no r evisions t o t he f inancial management a nd disbursement arrangements, except for the revision to 100% for all Category expenditures to be f inanced u nder t he r educed cr edit o nly. T his ch ange h as b ecome n ecessary i n v iew o f continued difficulties with government counterpart funds. This revision is in line with agreed Country Financing parameters.

Closing Date: The Project will be extended for 18 months to assure the completion of the construction of the ICT Park, IDA-IFC Access to Finance collaboration and Matching Grant Scheme for SME Business Development Services. The new Closing Date is June 30, 2013.

Category O riginal Allocation (XDR)

Disbursed Amount

Proposed Re-allocation

% of Expenditures to be Financed

1. W orks 3,250,000 1,319 7,532,711 100 2. .G oods 3,750,000 451,270 1,999,020 100 3. .Consultants’ s ervices

and audits 7,100,000 1,772,699 6,539,406 100

4. T raining 1,750,000 393,219 723,790 100 5. O perating Costs 450,000 282,414 507,808 100 6. B DS Grants 4,500,000 1,344,537 2,647,909 100 7. L OC Performance

Grants 1,450,000 - 160,780 -

8. S ubprograms 3,150,000 1,244,000 1,244,000 100 9. P artial Credit

Guarantees 2,850,000 819,202 2,812,886 100

10. U nallocated 2,850,000 - 0 11. C ancelled 6,931,690 TOTAL 31,100,000 24,168,310.00

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ANNEX 1: Results Framework and Monitoring

GHANA - MICRO, SMALL AND MEDIUM ENTERPRISE PROJECT

Project Development Objective (PDO): To enhance the competitiveness and employment levels of MSME’s through (a) building an integrated market access and trade facilitation infrastructure; (b) supporting entrepreneurship development; (c) developing and strengthening the sustainable capacity of local intermediaries to deliver financial and non-financial services to MSMEs and of MSMEs to make productive use of these services; (d) reducing selected business constraints faced by MSMEs, including technical barriers to trade; (e) providing an enabling environment to increase investments in the MSME sector; and (f) enhancing project implementation capacity of the Borrower. Revised Project Development Objective: N/A

Cumulative Target Values** PDO Level Results

Indicators* Cor

e

D=Dropped C=Continue N= New R=Revised

Unit of Measure

Baseline 2008 GH¢

YR 1 2009

YR 2 2010

YR 3 2011

1.Volume of bank credit to MSMEs

GHC/$e 6, 849,276,000.

8,270,040,000. 9, 900,000.000 11,800,000,000

2. Total incremental sales revenue ($) (project supported MSMEs)

GHC/US$

13,698,861.00 15 ,754,000. 19,692,500.00 24,615,700.00

3. Number of jobs (project supported MSMEs)

No. 1,932 2,500 3200 4200

4. Number of newly registered MSMEs

No. 44,000 53,000 63000 82000

INTERMEDIATE RESULTS

Intermediate Result (Component One – Access to Finance):

Revised Intermediate Result (Component One-Access to Finance): Strengthened capacity of banks and MSME’s in SME lending and business planning 5. .No. of loan officers trained/coached

R Number 60 60 60 120

6. No. of approved bankable loan proposals

R Number 14 10 15 30

7. No. of new FI’s/product developed

R Number 0 0 1 1

8. No. of loans disbursed by FI’s to MSMEs

R Number (x)* * 2009

1,138 1360 1650

9. Value ($) of loans disbursed by participating FI’s to MSMEs

R $ 2009 figure serves as baseline

69,671,000 83,600,000 100,000,000

10. %age increase in volume of SME Loans extended by participating banks

C % 2009 figure serves as baseline

- 20% increase over baseline

40% increase over baseline

11. volume of bank support: LOC-SME (US$)

Core N $ 0 0 0 20mn

12. volume of bank support; institutional

Core N $ 255,464 114,472 260,000 312,000

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development –microfinance (US$) 13. outstanding SME Loan Portfolio (US$)

Core N $ -2009 figure serves as baseline

49,305,000 39,000,000 31,000,000

14. number of active loan accounts

Core N -2009 figure serves as baseline

1,138 1360 1650

15. Portfolio at risk – SME (%)

Core N % 7.7 14.9% 7% 5%

16. Adjusted return on assets/equity (%)

Core N % 23.7 17.5 25% 30%

17. number of banks participating in the PCG, LOC and BDS programs

D

Intermediate Result (Component Two):

Revised Intermediate Result (Component Two): Access to Markets, Trade Facilitation and Entrepreneurship Development: Improved opportunities for market access and enhancement of entrepreneurial skills

18. Total (cum.) no. of MSME contract signed (service/sales contract with buyers /clients)

R No.

66

139

240

350

19. Total (cum)value of MSME contracts signed (US $) R $ 1,368,573 3.247 M 6.5 M

10.0m

20. No. and (%) of MSMEs assisted obtaining national or int. product certification/standard.

NNo./ %

5/7.5% 0 21/10%

31/ 10%

21. No. of comprehensive supply chain/cluster strategies adopted.

R/C Number -2009 figure serves as baseline

6 6 9

22. MSMEs assisted through BDSF (disaggregated by gender.

R Number Male-37 Female-20 Assoc- 9

Male-41 Female- 18 Cluster-6 BMO-8

Male – 50 Female – 30 Assoc. – 10 BMO - 10

Male – 55 Female – 35 Assoc. – 10 BMO - 10

23. Number of MSMEs that have received BDS grants and reporting increased in market share.

D

24. number of MSMEs that have improved their productive capacity and domestic market share

D

25. comprehensive supply chain strategies developed to address relevant missing links

R/D

26. at least of 3 comprehensive supply chain strategies in priority sectors by end 2007

R/D

27. number of MSMEs with improved access to construction sub

D

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contracts in relation to large firms 28. percentage of MSMEs applying new management techniques as a result of the project

D

29. Evidence that participating MSMEs have met their institutional targets

D

30. Number of sub contracts signed in target sectors.

R Number

2009 serves as baseline

3 60 100

31.Number of request to the information website

N Number GEPC portal does not track no. of visitors/requests

N/A N/A N/A

32. .Number of visitors to the information center

N Number 4080 5,463 7100 9200

33. Number of incubatees /incubated companies graduated from the ICT Park.

R Number To be determined when ICT Park becomes operational

No ICT Park in place

No ICT Park in place

3 incubated companies; 75 incubatees

34. ICT Park set up within the Tema Multi- Purpose Industrial Park and connected to SAT 3

D

35. IT architecture and operationality framework are in place

D

36. At least 10 companies are hosted in the ICT Park

D

37. At least 300 persons are trained at the ICT Park

D

38. Number of strategic businesses developed resulting from the interventions of the project

D

39. 3 common service centers established

D

40. At least 100 MSMEs are supported in the furniture city

D

41. .Number of MSMEs supported in the Furniture City.

R Number Furniture city not yet operational

Furniture city not yet operational

Furniture city not yet operational

Not likely that furniture city will be completed by this date

42. Number of tourist visits to the craft villages

R Number 2009 as baseline 115,000 138,000.00 165,600

43. Tourism development strategy/ master plan have been issued

D

44. Percentage of MSMEs accessing services from common services center

D

45. Trade Information system established

D

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46. Percentage of MSMEs that are making use of the trade information system and reporting improvement in their business

D

47. Number of MSMEs accessing services from the one stop information resource center

D

48. Number of MSMEs using the Export Round Table and Export Trading House facilities

D

INTERMEDIATE RESULTS

Intermediate Result (Component three): Business Environment

Revised Intermediate Result (Component three: Enhanced legal and regulatory framework 49. Number of certified MSME products

R Number 386 603 856 1100

50. Number of recommended law/amendment/regulations/codes enacted

R Number 2 3 4additional laws enacted

51. Average number of days to comply with business regulation/register a business.

R/C Number 21-30 5-10 5-10 5-10

52. average official cost to comply with business regulations/cost of business start up

R/C ¢ 65 65 65 65

53. Number of accreditation institutions to certify MSME products

R Number 2 5 5 7

54. Proportion of MSMEs reporting increased growth in exports due to improved system of quality standards

D

55. Percentage increase in application of national standards

D

56. Proportion of MSMEs complying with mandatory certification requirements

D

57. Number of days required to register a new business reduced from 82-30

D

*Please indicate whether the indicator is a Core Sector Indicator (see further http://coreindicators)**Target values should be entered for the years data will be available, not necessarily annually.

ANNEX 2: Key Performance Indicators

1. Volume of bank credit to MSMEs 2. Percentage increase in volume of SME Loans extended by participating banks 3. Total incremental sales revenue ($) (project supported MSMEs) 4. Number of jobs (project supported MSMEs) 5. Number of newly registered MSMEs 6. Number of approved bankable loan proposals 7. Number of new Financial Instruments/products developed 8. Total (cum.) number of MSME contract signed (service/sales contract with buyers /clients) 9. Number and Percentage of MSMEs assisted obtaining national or international product certification/standard.

10. Number of comprehensive supply chain/cluster strategies adopted.

11. Number of sub contracts signed in target sectors. 12. Number of visitors to the information center

13. Number of incubatees/incubated companies graduated from the ICT Park. 14. Number of tourist visits to the craft villages 15. Number of certified MSME products 16. Number of recommended law/amendment/regulations/codes enacted 17. Average number of days to comply with business regulation/register a business.

18. Average official cost to comply with business regulations/cost of business start up 19. Number of accreditation institutions to certify MSME products 20. Number of SMEs utilizing common services of Community-Based Rural technology centers