AFRICAN DEVELOPMENT FUND

AFRICAN DEVELOPMENT FUND MULTINATIONAL AFRICAN CAPACITY BUILDING FOUNDATION FOR THE THIRD STRATEGIC MEDIUM TERM PLAN (SMTP III) (PCR) RDGS DEPARTMENT April 2018

PROJECT COMPLETION REPORT FOR PUBLIC SECTOR OPERATIONS (PCR) I BASIC DATA A Report data Report date Date of report: 12 August 2015 Mission date (if field mission) From: 6 July 2015 To: 10 July 2015 B Responsible Bank staff Positions At approval At completion Regional Director Ebrima Faal Josephine NGURE Country Manager Mary MONYAU Sector Director Vicotr MURINDE John ANYANWU Sector Manager Bernadette Dia KAMGNIA Noel KULEMEKA Task Manager Kanny DIALLO Nkoanyane SEBUTSOE Alternate Task Manager PCR Team Leader PCR Team Members Bernadette Dia KAMGNIA Nkoanyane SEBUTSOE; Mary Manneko MONYAU C Project data Project name: GRANT SUPPORT THE AFRICAN CAPACITY BUILDING FOUNDATION FOR THE THIRD STRATEGIC MEDIUM TERM PLAN (SMTP III) Project code: P-Z1-KF0-036 Instrument number(s): ADF GRANT 2100155026866 Project type: PUBLIC SECTOR PROJECT Sector: INSTITUTIONAL SUPPORT Country: MULTINATIONAL Environmental categorization (1-3): 3 Processing milestones Bank approved financing only (add/delete rows depending on the number of financing sources) Financing source/ instrument1: ADF Grant 2100155026866 Key Events (Bank approved financing only) Financing source/ instrument1: ADF Grant 2100155026866 Disbursement and closing dates (Bank approved financing only) Financing source/ instrument1: ADF Grant 2100155026866 Date approved: 17 th February 2014 Cancelled amounts: None Original disbursement deadline: 31 st November 2014 Date signed: 31 st March 2014 Supplementary financing:none Original closing date: 31 st December 2014 Date of entry into force: 31 st March 2014 Date effective for 1st disbursement: 08 th May 2014 Restructuring (specify date & amount involved): None Extensions (specify dates):31 st December 2015 Revised (if applicable) disbursement deadline:31 st March 2015 Revised (if applicable) closing date: 31 December 2015 1

Date of actual 1st disbursement: 30 th May 2014 Financing source/instrument (add/delete rows depending on the number of financing sources): Disbursed amount (amount, UA): Percentage disbursed (%): Undisbursed amount (UA): Percentage undisbursed (%): Financing Source/ instrument1:adf 3,000,000 100% 0 0 Government: Other (eg. co-financiers). Add rows as needed TOTAL 3,000,000 100% 0 0 Co-financiers and other external partners: WORLD BANK, 33 African member countries, South Africa (These are cofinanciers for the overall ACBF SMTP III but not for this specific project). Executing and implementing agency (ies): THE AFRICAN CAPACITY BUILDING FOUNDATION (ACBF) D Management review and comments Report reviewed by Name Date reviewed Comments Country Manager Damoni KITABIRE Sector Manager Noel KULEMEKA 21 December 2017 Regional Director (as chair of Country Team) Sector Director Josephine NGURE John ANYANWU Program was ultimately beneficial as countries benefited from training and TA in terms of debt sustainability. Bank also moved from retail to wholesale capacity building. II Project performance assessment A Relevance 1. Relevance of project development objective Narrative assessment (max 250 words) 4 The overall goal of the project and ACBF s Third Strategic Medium Term Plan (SMTP III) is to build capacity of regional institutions for governance that is effective and translates into real poverty reduction. The Bank s Ten Year Strategy (TYS) alludes to the huge capcity building needs the contirnet is faced with and goes on further to allude to the fact not one capacity building institution can achieve the feat alone. The Bank therefore emphasizes the need for partnerships in ensuring adequate coverage of capacity development in Africa. This project therefore prioritized the idea of building partnerships and the Executing agency (ACBF) worked with other implementing partners being Macroeconomic and Financial Management Instuitute for Eastern and Southern Africa (MEFMI) and the Nigelria Insitute for Legislative Studies (NILS). The project development objective (PDO) emphasizes effective economic governance and this is aligned to the Bank s Knowledge Management Strategy 2015 2020 as well as the Capcity Development Strategy. These two strategies, the KMS and CDS have among their objectives the need to improve the capacity of regional member countries RMCs to undertake effective policy dialogue. Moreover, the PDO is also aligned with the Bank group Regional Integration Policy and Strategy (RIPoS) 2014-2023 whose objective is to foster regional and ultimately continental economic integration through increased effectiveness of Bank Group support to RMCs, the private sector and sub-regional and regional organizations. To this end, strengthening the capacity of the African institutions was deemed critical to accelerating the integration agenda lleading to emphasis being placed on ensuring wide coverage of the project activities through a regional focus by prioritizing regional workshops. By providing capacity building to RMCs officials the project also satisfied the Bank s Human Capital Strategy 2014 2018 whose aim is is to harness the potential of one billion Africans by building skills and promoting technologies for equal opportunities and a productive and competitive workforce. For all ratings in the PCR use the following scale: 4 (Highly satisfactory), 3 (Satisfactory), 2 (Unsatisfactory), 1 (Highly unsatisfactory) 2

2. Relevance of project design Narrative assessment (max 250 words) The project was designed to respond to the needs of the Bank, the Executing Agency as well as the RMCs given that most RMCs lack are faced with challenges when it comes to economic and financial governance. The capacity of the ACBF was assessed during project design to gauge its ability to implement the project. It was found that ACBF possesses competent staff, effective internal controls, and a sound accounting system. This thus assisted in ensuring that funds are used only for intended purposes; and financial reporting is based on accurate and complete information. ACBF s financial management policies, procedures and practices are in full compliance with the International Financial Reporting Standards (IFRS). Moreover, the procurement rules and processes of the Foundation were put in place with the support of the AfDB and the World Bank as thus they were found adequate to handle the project s procurement activities. By this the project aimed at minimizing delays involved with the prior review requirements necessary under use of Bank Rules and Procedures for Procurement of Consultants as well as good s and services. 3 In light of the huge capacity needs facing African countries and the notion that not one institution can meet all these needs, the project also employed the idea of partnerships as advocated for in the Bank s TYS, the CDS and KMS. This helped the Bank move from retail to wholesale provision of support towards capacity building. Due to delays in project approval the design of the project enabled the executing agency to adjust ther activities along with the sub-grantees to ensure effective implementation and delivery. The work programme progressed with slight disruptions. Minor adjustments were made to the results based logical framework (RBLF) during project implementation to ensure achievement of expected results and their sustainability. Some outputs were revised to those that can be easily measured. By working with the sub-grantees the project enabled some skills transfer as some of the documents ABCF uses were shared with the sub-grantees in order for better implementation. This entailed among others the monitoring and evaluation templates which made supervision easy. The grant also enabled the Bank strengthen its partnership and collaboration with ACBF in the development of regional public goods on capacity building. 3. Lessons learned related to relevance Key issues (max 5, add rows as needed) 1. Responding to capcity needs and priorities of RMCs 2. Increased member countries buy-in, ownership and use of macroeconomic, financial and debt management solutions 3. Increased willingness and commitment of member countries to contribute to financing capacity building intervention B Effectiveness Lessons learned 3 Target audience With the continuous demand for effective macroeconomic, financial AfDB, ACBF, RMCs governance and accountability, and debt management capacities in RMCs, the other partners Bank and ACBF will continue to respond to the needs and priorities of African countries in these areas. Partnerships are important as they assist in partenrs leveraging on each others expertise, capacity and comparative advantage. The demand driven and participatory technical and advisory support provided by MEFMI, contributed significantly to increased buy-in, ownership and use of policy recommendations, tools and manuals developed by the institution. The active involvement of the member countries in the diagnostics of the issues as well as development and roll-out of the possible solutions enhanced knowledge and skills transfer, ownership and sustainable use of the macroeconomic, financial and debt sustainability models and instruments. A participatory approach resulted in member countries increased willingness and commitment to the project For instance, MEFMI member countries contributed 50.2% of the total budget of their current strategy. The funding provided to NILS served as catalyst to attract additional funding from the Nigerian government in excess of $400,000 of the project grant. This was due to project implementation success. 1. Progress towards the project s development objective (project purpose) Comments AfDB, ACBF, MEFMI other partners AfDB, ACBF, NILS other partners The development objective of the project is to promote effective governance in regional member countries and regional institutions that translates into real poverty reduction. The project had two componets namely: Component 1: Improving economic and financial governance in support of regional integration policy formulation and implementation and component 2: Improved transparency and accountability in the management of public resources in Africa. Through 3 interventions (MEFMI, NILS and AGO), the project has improved the capabilities (knowledge, skills, systems and processes) of Central Banks, Ministries of Finance/ Economic Planning,

parliaments and parliamentary institutions and other stakeholders in MEFMI and ECOWAS regions in macroeconomic, debt and financial sector management ; cross-border trade and effective Executive-Legislative relations. Further,the generation of the AGO, has enhanced stakeholder knowledge and access to research-based information for decision making on financial governance in Africa. Five (5) out of the 8 results (outcome and output) targets agreed in the Results-Based Monitoring and Evaluation Framework have been achieved. 1. MEFMI Under Component 1: Improving Economic and Financial Governance in support of Regional Integration, Policy formulation and Implementation, the following results were achieved: 1.1 Improved Macroeconomic, financial and debt management in the Eastern and Souther Africa Region: MEFMI s hands-on technical and advisory support has enabled its member countries to improve their macroeconomic, financial and debt management capabilities, including: (i) Development of 5 Financial Programming Framework for Botswana, Namibia, Rwanda, Kenya, Lesotho, (ii) Development of a core Model of Inflation for EAC Countries such as Rwanda; (iii) Development of a Quarterly GDP and short-term Economic Indicators for Lesotho; (iv) Development of 3 Macroeconomic Modeling and Forecasting models for Swaziland, Malawi, Mozambique; and v) harmonization of methodologies and construction of analytical indicators for SADC, SACU and EAC countries 1.2 Strengthened Policy Formulation and Implementation of RECs on Regional Integration and Trade within the MEFMI Region: MEFMI Conducted 6 seminars: (i) A Seminar on Regional Integration and Trade (30 participants); (ii) A Course on Economic Issues in Regional Integration (35 participants); (iii) A seminar on Deeper Regional Integration Agenda in Africa (30 participants); (iv) Regional workshop on Developments and innovations in payment systems (20 participants); (v) Seminar for Heads of Payment systems on Leveraging payment systems in Financial Inclusion (13 participants); (vi) Supported the formulation of debt policies through conducting debt sustainability analysis in Zimbabwe, Tanzania, Zambia and Lesotho. In addition, 5 In-country missions were conducted: (i) In-country missions to: Central Bank of Swaziland, Bank of Botswana and Bank of Zambia to provide technical assistance on implementation of the COMESA Framework for Financial Stability Assessment and reporting requirements; (ii) In-country missions to the National Bank of Rwanda and Bank of Mozambique on payment systems oversight 1.3 Increased stakeholder knowledge and awareness of Innovative Methods of Financing Infrastructure Development in MEFMI Region: a High Level Seminar on Sovereign Bond Issuance focusing on Innovative Infrastructure Financing Options was organized. The seminar deliberated on potential use of several innovative infrastructure financing mechanisms including Public- Private Partenerships (PPPs), Tapping on Remittances for equity, Diaspora bonds/ remittance backed bonds, Resource for Infrastructure (RFI) approach, and Annuity Financing Mechanism. Beneficiaries were Ministries of Finance, Central Banks and Capital Markets Authorities of MEFMI 13 Member states 2. NILS-CAP NILS-CAP has contributed to improving the knowledge and understanding of policy makers, mainly Legislators, in regional integration and effective financial governance. The project has also enhanced the skills and competencies of parliamentary staff in the ECOWAS region to enable them provide effective technical support toward the work of parliamentary institutions. The following are the specific achievements of the component: 2.1 Improved knowledge and skills of 480 ECOWAS Parliamentary staff in Results Based Monitoring and Evaluation, Speech Writing and Legislative Research Methodology. The customized national-level training sessions has enhanced the capacity of parliament officials to provide effective technical support to the legislators. 2.2 Enhanced skills of 153 policy makers including ministers, legislators, MPs, Directors of government ministries and departments and civil society actors, in cross-border trade and financing framework including Cross- Border trade and opportunities for trade finance in West Africa. 2.3 Increased knowledge and awareness of 140 policy makers including ministers, legislators, Directors of government ministries and departments and civil society actors on cross-border trade and financing framework. A two-day regional conference on regional trade and financing opportunitie was organized by NILs which produced a Communiqué that was widely disseminated and is expected to have a positive impact on trade policies in the ECOWAS sub-region. 2.4 NILS-CAP supported Legislators and staff from the ECOWAS sub-region to participate in selected international programs and conferences, learn best practices, and share experiences in developmental issues. 2 officials participated in a course on Executive-Legislative relations and effective performance organized by the John Hopkins university; 2 officials participated in an Advanced Legislative Management course, organized by the University of Illinois; 3 Parliamentarians participated in a Negotiations and Decision Making Strategy course organized by RIPA in London; 2 Parliamentarians participated in a Strategic Leadership course at Oxford; 1 staff participated in an Outcome-Based Monitoring and Evaluation Course in South Africa; and 4 officials participated in an International Executive Program for Senior Parliamentary Staff organized by McGill University. 4

3. AGO This aspect of the project was affected by delays in implementation. The process involved recruitment of country research teams (CRTs) within the 10 pilot countries (Burkina Faso, Ethiopia, Ghana, Kenya, Mali, Mozambique, Rwanda, Senegal, Tanzania, and Uganda) who would then be tasked with preparing the relavant country s financial governance report. There were delays in five of the countries and this led to the overall delay in the publishing of the relevant country assessment reports as well as the Flagship report. Following the recruitment of the remaining CRTs an inception workshop was conducted end of July 2015. A validation workshop was held in November 2016 to present the findings of the report. This report was finalised by ACBF and was shared with the Bank to provide comments before its publication. The comments have already been done (July 2017) and the final product is expected from ACBF. <ENTER HERE> 2 Outcome reporting Outcome indicators (as per RLF; add more rows as needed) Outcome 1.No of Africa capacity Indicators Report (ACIR) developed Baseline value (Year) Most recent value (A) End target (B) (expected value at project completion) Progress towards target (% realized) (A/B) Narrative assessment (indicative max length: 50 words per outcome) 3 ACIR 4 ACIR 4 ACIR 100% The 4 th ACIR was published on 22 December 2014. The ACIRs are currently present on over 90 websites of development institutions and libraries such as the WBI, AfDB, United States Agency for International Development (USAID), Capacity.org, LenCD, Stanford University. The Library of Congress and over 106 organizations have reproduced the different versions of the ACI reports on their websites. Core Sector Indicato r (Yes/No) Outcome 2:No. of countries that have adopted the Private Capital Monitoring System(PCMS) Outcome 3: No. countries whose of parliamentary institutions were supported (see IPR methodology) 4 8 9 11 82% The tool is being used by 9 countries, namely Botswana, Kenya, Lesotho, Malawi, Mozambique, Rwanda, Swaziland, Tanzania, Zimbabwe. It has helped member countries to establish and ascertain the magnitude, scale and composition of the stocks and flows of foreign private capital and their impact on the economies. 0 11 10 110% 12 countries could have been covered but due to emergence of new cases of EBOLA in one of the targeted country, 11 were covered. Narrative assessment Even though the PAR put sthe baseline for the ACIR at 1, the actually number of ACIR already produced were 3 hence the baseline number shoulf have been 3 and not 1. This was realised during the mid-term review and corrected in the logical framework. In addition, during the mid-term it was discovered Outcome 2 on Number of countries rated with more than 39 on the Corruption Perception Index (CPI) for transparency, accountability and corruption in public sector would not truly reflect the results of the project and was thus replaced with Outcome 2: No. of countries that have adopted the Private Capital Monitoring System(PCMS). 5

3 Output reporting Output indicators (as specified in the RLF; add more rows as needed) Output 1:No. of institutions trained on regional integration policy modelling and forecasting including gender using gender-s ensitive parameters Output 2:No.of RECs assisted to develop policy frameworks for the management of public private partnerships Output 3: No. Of legislators and parliamentary staff trained in cross border trade, peace building and outcome-based monitoring and evaluation Output 4.1: No. of Africa Governance Outlook (AGO) country reports published Output 4.2 Publication of consolidated report summarising findings from the 10 AGO country reports Most recent value (A) End target (B) (expected value at project completion) Progress towards target (% realized) (A/B) Narrative assessment (indicative max length: 50 words per output) 22 12 183% The interventions have contributed to: promoting evidence-based policy making; imparting knowledge on recurrent issues on regional integration; enhancing capacity to manage trade arrangements; appreciation of policy challenges for deeper integration and the role of different institutions (Central Banks, Ministries of Finance, Ministries of Planning, Custom Administration, etc). Out of 893 training beneficiaries, 349 (39%) were women. 03 02 150% Main beneficiaries are from the Ministries of Finance, Central Banks and Capital Markets Authorities. 700 450 156% Many of the programs organized by NILS were over-subscribed. Also, the ECOWAS Parliament and the Nigerian government contributed funds to activities of NILS-CAP. 35% of the participants were women 0 10 0 Work is ongoing in all 10 countries of the AGO. Out of the ten (10) country reports, five (5) have been received and under review (Ghana, Kenya, Uganda, Mali and Mozambique). The Country Reserach Teams (CRTs) have been recruited for the drafting of the remaining country reports and these are expected end of December 2015. 1 1 100% Though with a delay, the consolidated report was finalised by ACBF and has been received by the Bank to provide final comments before publication. The country reports will also be published independent of the consolidated report. Core Sector Indicato r (Yes/No) (see IPR methodology) 3 Narrative assessment All the the other outputs were realised on time but one. The AGO component suffered huge delays with country teams in 5 other countries taking time to be procured. Extension was giaven to allow adequate time for its completion. Following a validation workshop in November 2016, the consolidated report has been finalised and shared with the Bank for comments before publication. The other country reports will be published independent of the coslidated report. 6

4 Development Objective (DO) rating DO rating (derived from updated IPR) 3.5 Narrative assessment (indicative max length: 250 words The project has satisfactorily made strides towards achievement of the PDO, despite facing initial delays in disbursement of funds and as a result of the outbreak of the Ebola epidemic in West Africa for some activities. It is also aliogned with the objectives and priorities of ACBF s SMTP III and the Bank s Strategies for the project period. The development objective of promoting effective governance in regional member countries and regional institutions has been satisfactorily achieved, since the achievement of outputs and outcomes is deemed satisfactory. Two out of the three outcome indicators and respective targets annual and at end of project have been achieved. The one outcome that even needed an extension to the project close date was the AGO which suffered from delays in the setting up of the country research teams (CRTs) in five of the ten countries. However this activity has since been completed and the report has been shared with the Bank. 5 Beneficiaries (add rows as needed) Actual (A) Planned (B) Progress towards target (% realized) (A/B) MEFMI: 14 countries NILS: 12 countries AGO: 10 countries % of women Category (eg. Farmers, students) 14 100% 39 Senior and middle level officials from the Directorates of Ministries of Finance and Planning, Central Banks and Regulatory Bodies of the 13 Members States 10 120% 35 Legislators and staff from the ECOWAS region 10 100% n/a Governments of the 10 countries, and other RMCs 6 Unanticipated or additional outcomes (add rows as needed) Description Reduction in the number of regional parliamentary training activities due to the Ebola outbreak. Type (eg. Gender, climate change, social, other) Positive or negative Impact on project (High, Medium, Low) Health Negative NILS-CAP had to cut down on planned regional level participation in favour of increased national level participations. Extended delay in the delivery of the AGO component Other negative Though completed this activity delayed the finalisation of the PCR. 7 Lessons learned related to effectiveness (add rows as needed) Key issues (max 5, add rows as needed) Lessons learned Target audience 1. Flexible design and implementation strategy The flexibility of the Foundation s grant design and implementation strategy enabled it to adjust the project scope and timelines despite the initial delay in grant approval by the AfDB without any serious negative impact on the expected results. AfDB, ACBF other donors 2. Providng tailor-made capacity building support to parliamentarians and parliamentary staff The customized capacity building support including training favourably responded to the needs of the beneficiary countries. For example, the Federal Government of Nigeria provided additional support to enable more parliamentarians to benefit from the training. As parliament is the first point of government scrutiny training parliamentarians helped them in understanding the various aspects of their job in oder for increased accountability. 7 AfDB, ACBF other donors

3. Hands-on technical assistance and project implementation support provided by ACBF has enhanced the delivery and impact of the project. Project Scope Creep The on-site and remote technical support provided by ACBF helped in accelerating the delivery and impact of the poject. In addition to the grant, ACBF provided technical support to MEFMI and NILs in project management including M&E, financial management and procurement which has enabled the instituions to improve their capabilities which has translated into timely implementation and reporting on project results. MEFMI for example has adopted the Results Measurement Framework (RMF) developed as part of the project for its engagement with other donors. Initial project design assumption of the AGO was to simply revise existing draft reports and improve political economy analysis. This was however subsequently expanded to involve a complete overhaul of the reports to respond to changes in data availability. ACBF AfDB ACBF AfDB CRTs C Efficiency 1. Timeliness Planned project duration years (A) (as per PAR) Actual implementation time years (B) (from effectiveness for 1st disb.) Ratio of planned and actual implementation time (A/B) 18 months 32 months 0.56 2 Narrative assessment (indicative max length: 250 words) The initial project start-up delays led to adjustment in the timelines to ensure that expected deliverables and results are achieved. Subsequently, the Foundation and AfDB discussed and the project duration was adjusted accordingly. Over and above this one aspect of the project the AGO experienced lengthy delays (only being finalised in 2017) and ended up affecting the overall completion of the project. All the other activities were completed on time as explained in the outputs section. The delays were as a result of inability to quickly appoint country teams in five countries. 2. Resource use efficiency Median % physical implementation of RLF outputs financed by all financiers (A) (see II.B.3) Commitment rate (%) (B) (See table 1.C Total commitment rate of all financiers) Ratio of the median percentage physical implementation and commitment rate (A/B) N/A N/A N/A Narrative assessment (indicative max length: 250 words) The Foundation has significamtly improved its resource base through diversifying its financing partners. The efficiency indicator - percentage of total program costs (including knowledge and learning products) to cash outflows - shows improved value of ACBF s capacity building support. The over program ratio increased from 83.7% in 2011 to 88.9% in 2014. This ratio was 88.7% as at 31 May 2015. On the other hand, the administrative ratio came down from 16.3% in 2011 to 11.1% in 2014. This is a demonstration of the continuous improvement in the Foundation s efficiency in resource use. 3. Cost benefit analysis Economic Rate of Return (at appraisal) Updated Economic Rate of Return (at completion) N/A N/A N/A Narrative assessment (indicative max length: 250 words) The Economic Rate of Return was not calculated for this project at appraisal. 8

4. Implementation Progress (IP) IP (derived from updated IPR) Narrative comments (commenting specifically on those IP items that were rated Unsatisfactory or Highly Unsatisfactory, as per last IPR). (indicative max length: 500 words) (i) Compliance with commitments: The conditions precedent to grant effectiveness, the first disbursement and conditions required after effectiveness were fulfilled on time. The project was classified as category 3 and therefore did not warrant any compliance to the Environmental and Social Management Plans as well as social safeguards. (ii) Project systems and procedures: 4 Financial Management: The Implementing Agency (ACBF) continues to have a sound internal control framework in place. This includes competent staff, effective internal controls, and a sound accounting system. This has assisted in ensuring that funds are used only for intended purposes; and financial reporting are based on accurate and complete information. ACBF s financial management policies, procedures and practices are in full compliance with the International Financial Reporting Standards (IFRS). Procurement: The rules and processes of the Foundation were developed with the support of the AfDB and the World Bank. The resulting procurement activities were in full compliance with the provisions of the grant agreement as well as the Bank s rules and procedures. The project files have been maintained consistently with Bank requirements. Audit compliance: (iii) Project implementation and financing: the project suffered a delay in the Bank s disbursement of the funds however ACBF and other implementing partners ensured that negative impact is minimal. The overall output rating is satisfactory (3). The score would have been a 4 if the AGO activity had been implemented successfully within the project time frame. This has caused a significant delay in preparing this PCR as the activity went even beyond the 31 st December 2015 deadline that was granted as an extension. The validation workshop only took place in November 2016 and the consolidated report as awell as the country reports are yet to be published. This has been alluded to in the Section C (i) on timeliness. 5. Lessons learned related to efficiency Key issues (max 5, add rows as needed) Lessons learned Target audience 1. Implementation of new operating modalities The implementation of new operating modalities (including relying on mature implementing partners to undertake some of the activities in their vicinity in lieu of ACBF fielding a mission, use of technology for supervision, etc.) has helped reduce operating costs and improved the timelines for developing and disseminating strategic knowledge products. For example, in recognition of the strategic importance of the 1st US-Africa Summit that was held in Washington, DC., USA, August 4-6 2014, the Foundation in collaboration with six ACBF-supported think tanks (i.e. Botswana Institute of Development Policy and Analysis (BIDPA); Institute of Democratic Governance (IDEG), Ghana; Kenya Institute for Public Policy and Research Analysis (KIPPRA); Centre Mauritanien d Analyse de Politique (CMAP); Centre D Etude et de Reinforcement des Capacites d Analyse et de Plaidoyer (CERCAP), Mali; and Programme de Gestion des Politiques Economiques (GPE-Kinshasa), DRC) drafted position papers that contributed to the discussion on the US-Africa relations. 9

D Sustainability 1. Financial sustainability 3 Narrative assessment (indicative max length: 250 words) The capacity challenges of the continent are such that African governments are backing up their demands for ACBF capacity building support with increased financial contribution. African countries have pledged a total of USD 28.15 million for the SMTP III and already, more than USD 15 million had been disbursed, which is unprecedented in the history of the Foundation. In addition, the Foundation has consolidated its partnership with the World Bank through a renewed focus on results. In parallel, the Foundation is diversifying its stream of resources and in August 2014, the Foundation entered into a partnership with the Bill and Melinda Gates Foundation on the Tobacco Contro Program in Africa. This partnership is expected to grow and diversify in the coming months and years. Aside this, the Government of Australia has engaged the Foundation through the provision of the resource facility for the Australia-Africa Community Engagement Scheme (AACES). The Foundation is also actively re-engaging its traditional bilateral partners (non-african countries) towards a resumption of their support, while making efforts to reach out to the emerging economies. The three governance organs of the Foundation (Board of Governors, Executive Board and Secretariat) are working hand-in-hand to further consolidate the financial sustainability of the Foundation. It is in this regard that the Board of Governors established in 2013 a Permanent Committee on Resource Mobilization and that resource mobilization has become a standing agenda item of the Executive Board. The efficiency indicator- Percentage of total disbursements (including K&L products) to cash outflows - shows improved value of ACBF s capacity building support. The overall program ratio increased from 84% in 2011 to 89% in 2014. This ratio is 89% as at 31 May 2015. On the other hand, the administrative ratio has come down from 16% in 2011 to 11% in 2014. This is a demonstration of continuous improvement of the efficiency of the Foundation. 2. Institutional sustainability and strengthening of capacities 4 Narrative assessment (indicative max length: 250 words) Since 2012, ACBF has been implementing a set of deep reforms aimed at making the Foundation more efficient and more effective. In November 2013, the Executive Board of the Foundation adopted an additional train of measures which were implemented in the following 5 areas: Prioritizing and Scaling up operations for Success; Increasing Efficiency; Strengthening Governance; Increasing focus on Results and Impact; and Working towards the sustainability of the Foundation. A total of 24 reform actions were identified in these 5 areas and implemented. These included difficult measures such as separation of half of the staff, pay cuts up to 20% for the remaining staff, operational innovations, governance tightening, etc. Today, the Foundation has become efficient and significantly effective in its approach to capacity development. The reforms conducted have put ACBF in a better position to address the increasing and multi-faceted demand of African countries for capacity building, generating a capable workforce, and strong institutions. The expected economic growth in many African countries will lead to further demand for skilled labor force and effective and capable institutions. The Bank Group s support to the Foundation s SMTP III and the region s capacity building will therefore be sustainable, given the increasing awareness of countries, RECs and donors for capacity development and efforts to ensure that the institutional environment is strengthened for economic governance and inclusive growth amidst globalization of trade and need for Africa to become more competitive. For instance, through support to MEFMI ACBF has contributed to building capacity in debt sustainability and formulation of debt policies for 4 countries during the contract period. This has strenthende officials of the given countries in doing meaningfula analysis. Other areas where RMCs capacity was strenthend include seminars on deeper regional integration agenda in Africa; Regional workshops on developments and innovations in payment systems; and seminars for heads of payment systems on leveraging payment systems in financial inclusion. Moreover the implementation of the AU Agenda 2063 requires some capacity imperatives identified by ACBF and it was agreed with the AUC that the Foundation will be assisting with the implementation of the first ten year implementation plan of the Agenda. 10

3. Ownership and sustainability of partnerships Narrative assessment (indicative max length: 250 words) ACBF, which was established through a partnership, attaches high importance to building and maintaining strong partnerships. These partnerships are at the following levels: At continental level: ACBF has made significant progress in consolidating its partnership with the key pan- African institutions namely the African Union, the African Development Bank, the NEPAD Agency and the Economic Commission for Africa, as well as regional institutions such as the Regional Economic Communities (RECs). This level of partnership places ACBF at the forefront of the definition of the continental agenda for capacity development; 3 At country level: ACBF has supported some 45 African countries in one way or the other since its establishment. In so doing, the Foundation has built strong partnerships with each of these countries. As reported by the ACBF governors at their 23 rd Annual Meeting in Dakar in June 2014, ACBF is the only organization that really understands their capacity needs and has found the most effective ways to address them. The steady increase in African financial support to ACBF is a result of a long-standing trust with these countries; At global level: ACBF approaches non-african countries and institutions not only from a financial resource perspective but also to expand its knowledge base and increase its ability to design solutions to the variety of capacity development issues faced by African countries. Thus, the partnership is built and sustained to take account of the fact that capacity development is a long term endeavour. Backed by these critical partnerships, ACBF has been able to offer a participatory and targeted programing as well as technical support which has enabled the beneficiary institutions abilities to own and drive the interventions as well as improve the delivery and impact of their activities. The Foundation has stimulated and continues to promote demand driven capacity building that responds to the needs and priorities of its member countries. In 2014, the Foundation initiated a new business model for efficiency and effectiveness of operational delivery.the Secretariat entered into strategic partnership with selected ACBF-supported mature policy think tanks for the supervision of ACBF projects. Based on its experience and the relevance of its mandate, more strategic partnerships are set with most reliable regional and continental bodies such as the African Union, the African development bank, the RECs as well as the African Governments. 4. Environmental and social sustainability N/A Narrative assessment (indicative max length: 250 words) The project was classigfied as a Category 3 and thus did not warrant preparation of an Enviromental and Social Mitigation/Management Plan (ESMP). However, it is geared towards developing capacities of both men, women and youth for inclusive policy formulation and management. For example, 39% of women have been trained at MEFMI course and 35% under NILS-CAP. It also seeks to enhance the capabilities of public sector decision makers and nonstate actor to foster evidence-based decision making, transparency and accountability for use of public resource. As part of the policy making component, ACBF supports the development and deployment of critical capacities for mitigating fragility and enhancing national development outcomes. 5. Lessons learned related to sustainability Key issues (max 5, add rows as needed) Lessons learned Target audience Increased member countries interest in targeted country level interventions including tailor-made training courses Member countries showed increased interest in the hands-on country-specific training and technical support. For example, the in-country training and technical support provided by MEFMI was over subscribed. AfDB, ACBF and beneficiary institutions Continuation of activities after the end of project. Both MEFMI and NILS have mainstreamed most of the activities funded under the AfDB grant into their programs. These activities are likely to continue after the end of the project. 11

Responding to priorities and needs of RMCs There is continuous demand for effective macroeconomic, financial governance and accountability, and debt management capacities in RMCs. The ACBF will continue to respond to the needs and priorities of African countries in these areas. Increased member countries buy-in, ownership and use of macroeconomic, financial and debt management solutions Increased willingness and commitment of member countries to contribute the financing of capacity building interventiion The demand-driven and participatory technical and advisory support provided by MEFMI, contributed significantly to increased buy-in, ownership and use of policy recommendations, tools and manuals developed by the institution. The active involvement of the member countries in the diagnostics of the issues as well as development and roll-out of the possible solutions enhanced knowledge and skills transfer, ownership and sustainable use of the macroeconomic, financial and debt sustainability models and instruments. A participatory approach resulted in member countries increased willingness and commitment to the project For instance, MEFMI member countries contributed 50.2% of the total budget of their current strategy. AfDB, ACBF, RMCs other partners AfDB, ACBF, MEFMI other partners AfDB, ACBF other partners III Performance of stakeholders 1. Bank performance 3 Narrative assessment by the Borrower on the Bank s performance, as well as any other aspects of the project (both quantitative and qualitative). See guidance note on issues to cover. (indicative max length: 250 words) The Bank has been timely in responding to issues and challenges that required attention. Through its implementation support and project monitoring process, the Bank worked closely with ACBF to ensure that the project stays on course and achieves the intended results despite the initial start-up delays. The Bank openly discussed with ACBF lessons from the Mid-Term review regarding possible implementation delays and absorption rate due to the Ebola outbreak in West Africa. Together with the Bank, the Foundation developed strategies for speeding up implementation and accelerating disbursement. The Bank s response to ACBF s requests has been timely and very helpful for the smooth implementation and achievement of results. Comments to be inserted by the Bank on its own performance (both quantitative and qualitative). See guidance note on issues to cover. (indicative max length: 250 words) Apart from the delays in the approval of the project and disbursement, the Bank was quite pro-active in ensuring the PDO is met. This is evident from the adjustments that were done in the Results-Based Logical Framework to ensure that both the outcome and output indicatros are SMART (specific, measurable, achievable, relevant and timebound). This was done to enable the Bank to be able to hold the ACBF accountable to meeting the project objectives. The Bank also ensured that procurement and other fiduciary requiarements conform to the Bank s Rules and Regulations and use ACBF s procedures where they are deemed adequate. Key issues (related to Bank performance, max 5, add rows as needed) Lessons learned 1. Delays in project approval 1. Sticking to timelines is important so as not to meet the deadlines or milestones as set in the project implementation plan 2. Flexibility 2. The Bank s flexibility allowed for changes to be made to the RBLF to ensure that the outcome and output indicators are SMART. 12

2. Borrower performance 3 Narrative assessment on the Borrower performance to be inserted by the Bank (both quantitative and qualitative, depending on available information). See guidance note. (indicative max length: 250 words) ACBF has been quite diligent and the flexibility of their grant design and implementation strategy enabled them to adjust the project scope and timelines despite the initial delay in grant approval without any serious negative impact on the expected results. The Foundation continued to improve its project monitoring and evaluation system by ensuring that its grantees adopt their online monitoring and evaluation tool to enable quick and easy reporting of progress. The ACBF ensured the project was prepared and implemented in compliance with covenants, agreements and safeguards agreed with the Bank, and further did very well in terms of its responsiveness to supervision recommendations. ACBF uses its own policies and procedures in managing financial management aspects of the project, these procedures have been found to be adequately meeting the Bank s minimum requirements and thus also conforming to the Bank s rules of procedures for project procurement, financial management, and monitoring. The entity uses a computerized accounting software which permit tracking of funds through the use of system imbedded cash books. Bank account reconciliations are prepared within a reasonable period after the end of a respective month, and any outstanding items are followed up in a systematic manner until they clear in subsequent periods Key issues (related to Borrower performance, max 5, add rows as needed) Lessons learned 1. Flexibility 1. Being flexibile allows for successful project implementation. Though the Bank disbursement was delayed, ACBF ensured the activities are delivered timely without much hindrance. 3. Performance of other stakeholders N/A Narrative assessment on the performance of other stakeholders, including co-financiers, contractors and service providers. See guidance note on issues to cover. (indicative max length: 250 words) Key issues (related to performance of other stakeholders, max 5, add rows as needed) Lessons learned (max 5) 1. 1. 1. N/A Target audience (for lessons learned) IV Summary of key lessons learned and recommendations 1. Key lessons learned Key issues (max 5, add rows as needed) Key lessons learned Target audience 1. Increased willingness and commitment of member countries to contribute to financing A participatory approach resulted in member countries increased willingness and commitment to the project For instance, MEFMI member countries contributed 50.2% of the total budget of their current strategy. 2. Flexible design and implementation strategy The flexibility of the Foundation s grant design and implementation strategy enabled it to adjust the project scope and timelines despite the initial delay in grant approval by the AfDB without any serious negative impact on the expected results. 3. Hands-on technical assistance and project implementation support provided by ACBF has enhanced the delivery and impact of the project. RMCs, ACBF & AfDB ACBF & AfDB The on-site and remote technical support provided by ACBF & RMCs ACBF helped in accelerating the delivery and impact of the project. In addition to the grant, ACBF provided technical support to MEFMI and NILs in project management including M&E, financial and procurement which has enabled the instituions to improve their capabilities which has translated into timely implementation and reporting on project results. MEFMI for example has adopted the Results Measurement Framework (RMF) developed as part of the project for its engagement with other donors. 13

4. Responding to priorities and needs of RMCs There is continuous demand for effective macroeconomic, financial governance and accountability, and debt management capacities in RMCs. The ACBF will continue to respond to the needs and priorities of African countries in these areas. ACBF 5. Implementation of new operating modalities The implementation of new operating modalities ACBF (including relying on mature implementing partners to undertake some of the activities in their vicinity in lieu of ACBF fielding a mission, use of technology for supervision, etc.) has helped reduce operating costs and improved the timeliness for developing and disseminating of strategic knowledge products. For example, in recognition of the strategic importance of the 1st US-Africa Summit that was held in Washington, DC., USA, August 4-6 2014, the Foundation in collaboration with six ACBFsupported think tanks (i.e., Botswana Institute of Development Policy and Analysis (BIDPA); Institute of Democratic Governance (IDEG), Ghana; Kenya Institute for Public Policy and Research Analysis (KIPPRA); Centre Mauritanien d Analyse de Politique (CMAP); Centre D Etude et de Reinforcement des Capacites d Analyse et de Plaidoyer (CERCAP), Mali; and Programme de Gestion des Politiques Economiques (GPE- Kinshasa), DRC) drafted position papers that contributed to the discussion on the US-Africa relations. 6. Interaction with the ZWFO Constant engagement with the ZWFO has helped in ensuring that the project is well implemented even though delays were realised. The comments and suggestions always made by the ZWFO enable ECAD to get required answers from the ACBF when issues are not clear. 7. Key recommendations (with particular emphasis on ensuring sustainability of project benefits) AfDB, ZWFO & ACBF Key issue (max 10, add rows as needed) Key recommendation Responsible Deadline 1. Continue interventions on key areas of capacity gaps. 2. Need for follow up on capacity building interventions to ensure sustainablilty. 3. Continue to create awareness on emerging issues. Develop Aide Memoires for follow up of interventions. ACBF, AfDB Ongoing V Overall PCR rating Dimensions and criteria 14 DIMENSION A: RELEVANCE 3.25 Relevance of project development objective (II.A.1) 3.5 Relevance of project design (II.A.2) 3 DIMENSION B: EFFECTIVENESS 3.5 Development Objective (DO) (II.B.4) 3.5 DIMENSION C: EFFICIENCY 3 Timeliness (II.C.1) 2 Resource use efficiency (II.C.2) N/A Cost-benefit analysis (II.C.3) N/A Implementation Progress (IP) (II.C.4) 4