1. Workshop Development Impact Evaluation in Finance and Private Sector Dakar February 2010 With generous support from Gender Action Plan The Gambia Team Members: Naffie / Ramatoulie / Alagie The Gambia Growth & Competitiveness Project (GCP)

2. Background  Constraints faced by MSMEs in The Gambia include among others:  access to finance (availability and cost),  access to land (cost and time for property registration) The Gambia Growth & Competitiveness Project (GCP)

3. Project Development Objectives  Improve the investment climate  Strengthen the competitiveness of key sectors to contribute to the 2 nd Pillar of PRSP II The Gambia Growth & Competitiveness Project (GCP)

4. INTERVENTION DESCRIPTION The GCP Project of has three (3) Components  Investment Climate Reform  Capacity building for investment promotion and facilitation  Company Registration and Licensing Reform  Investment Law Reform  Improving Access to Finance  Good Governance Program The Gambia Growth & Competitiveness Project (GCP)

5. INTERVENTION DESCRIPTION Cont’d  Strengthening Economic Clusters  Cluster Competitiveness Program  Restructuring the Gambia Hotel School into a private-sector led, demand-driven Hospitality Industry Training Institute  Strengthening tourism promotion and marketing  Horticulture Out-grower Scheme  Project Implementation Unit The Gambia Growth & Competitiveness Project (GCP)

6. Impact Evaluation Title Access to Finance: The Impact of Partial Credit Guarantee Scheme on MSMEs in The Gambia An IE will be undertaken on a subcomponent of the Investment Climate Reform - partial credit guarantee facility on a fifty-fifty basis The Gambia Growth & Competitiveness Project (GCP)

7. EVALUATION QUESTIONS Has access to the credit facility brought about: - An increased access to credit - Employment creation - Increased sales and productivity INDICATORS  Number of loans disbursed/ Ave. size of loans  Number of Employees / Average number of hours of work per employee /  Sales per month in GMD / Volume of Production per Month / Volume of production per employee  Profit per month in GMD  All data will be disaggregated by gender The Gambia Growth & Competitiveness Project (GCP)

8. EVALUATION DESIGN The Gambia Growth & Competitiveness Project (GCP) Participating Banks to make a public notice inviting applications for the Credit Facility available for MSMEs within a specified period of time [Participating Banks will receive training and TA on assessing MSMEs risk] Approved applicants to be randomly separated as Treatment and Control groups Credit will be made available to the Treatment group immediately while the Control group will receive the credit in eight (8) months. This is to determine the short term impact of the Partial Credit Guarantee scheme

9. Sampling & Data Sample: All MSME applicants pre-approved by the participating banks as eligible for credit under the partial credit guarantee facility of the Growth and Competitiveness Project (GCP). The treatment and control group will be randomly selected from the pre-approved applicants NB: The number of guaranteed loans cannot be determined at this point; the lack of credit is a major constraint for MSMEs in The Gambia it is therefore expected that many applications under this facility will be received but details of the loans will be determined by the bank The Gambia Growth & Competitiveness Project (GCP)

10. Timeline for Impact Evaluation TaskDate Validation of IE Proposal with Government Institutions April/May 2010 IE Preparatory workJune/July 2010 Sampling and questionnaire – first draftOctober/November 2010 Project SignedDecember 2010 Partial Credit Guarantee OperationalFebruary 2011 Baseline SurveyFebruary/March 2011 First follow-up on both GroupsNovember/December 2011 Analysis and dissemmination of first follow-upFebruary/March 2012 Second Follow upNov/Dec 2012 Analysis and dissemmination of first follow-upFebruary/March 2013 The Gambia Growth & Competitiveness Project (GCP)

11. IMPACT EVALUATION TEAM: STAFFING  The Impact Evaluation Team will be monitored by the Ministry of Trade, Industry & Employment  Data Collection to be undertaken by the Gambia Bureau of Statistics TEAM: A delegate from the Ministry of Trade A delegate from The Gambia Investment Promotion & Free Zones Agency A delegate from the National Planning Commission Field Coordinator – link b/w MOTIE GBOS and DIME Technical Assistance from the World Bank (DIME) World Bank Project Team (GCP) The Gambia Growth & Competitiveness Project (GCP)

12. BUDGET  World Bank will fund cost of field coordinator and TA  Data collection: GCP and other sources to be consulted like: Gambia Chamber of Commerce and UN Country Team NB: Detail Budget cannot be determined at this time because sample size is not yet determined The Gambia Growth & Competitiveness Project (GCP)

13. Thank You The Gambia Growth & Competitiveness Project (GCP)