ANNEX_J12_logical_framework.pdf

ANNEX J12 - LOGICAL FRAMEWORK

Annex J12 – LIFE Project Logical Framework Project Hypothesis: By addressing both demand and supply side constraints of the microfinance landscape, improved and new economic opportunities will be achieved for higher-risk groups, new and existing micro borrowers and the unbanked in conflict and non-conflict areas and financial inclusion services improved.

Indicator - DO2 Level: 1) # of jobs impacted by USAID assistance disaggregated by gender; and 2) # of MSME credit borrowers as a result of USG assistance, disaggregated by gender. 1

LIFE Project Purpose: Improved economic opportunities of low income and micro firms through strengthening the Lebanese microfinance association and member institutions’ financial inclusion services (Ref: CDCS DO2, IR 2.2).

IR 2.2- Increased access to finance, especially for new business start-ups and women entrepreneurs (1) Total number of client households and enterprises benefitting from financial services provided through USG-assisted financial intermediaries, including non-financial institutions or actors (disaggregated by sex and type of business); (F 4.7.1-12(2) Number of firms that have successfully accessed bank loans, private equity (or both) as a result of USG assistance (disaggregated by male- and female-owned businesses); (3) Number of MSEs, including low income farmers, receiving business development services from USG-assisted sources (beneficiaries disaggregated by sex) 2

Sub-IR 2.2.1 - Strengthened micro-finance association and member institutions Sub-Purpose Outputs Inputs Illustrative Indicators Means of

Verification Key Assumptions

Component 1 (Sub Purpose 1) An environment that is conducive to expanded national financial inclusion services and products.

Output 1.1– Financial inclusion strategy and regulatory framework development.

Map rural financial markets and landscape to better understand both the demand and supply sides of access to capital.

Conduct a gender analysis for access to finance to address constraints to women’s empowerment.

Select NGOs-MFIs and other

4.3.1-12 Number of days of USG funded technical assistance in financial sector enabling environment provided to counterparts or stakeholders.

Number of laws, policies, regulations or guidelines developed to improve financial sector environment.

Project reports, assessments and analysis.

Project site visits.

MFIs and NGOs annual financial reports.

Mid-term evaluation

This output will be demand driven, based on market assessments carried out by the Implementing Partner (IP) on potential opportunities for technology innovation and adoption.

Guidelines will focus on improving performance of the microenterprise sector to

1 The indicators listed are based on the CDCS indicators 2 The indicators listed are based on the CDCS indicators key stakeholders to engage with national policy makers, donors and other strategic partners to develop a lending strategy especially suited for the unbanked with emphasis on conflict areas.

Develop a draft strategy and action plan for national financial inclusion.

Coordinate with the Central Bank and provide technical assistance when needed to support the financial inclusion strategy

Promote cooperation between NGOs-MFIs for (1) cross-lending information to be shared between MFIs in an increasingly competitive environment (2) moving down-market to more vulnerable people and conducting outreach to new rural markets. (3) other forms of cooperation.

Project training attendance sheets.

become a substantial, capable, efficient and financially viable operation.

The mapping will include information that would enable Lebanon’s policy makers to better understand the needs of the poor and the range of financial services that they have come to depend on.

Output 1.2– Strengthened Lebanese Micro-finance Association (LMA) as a credible and competent

Conduct an institutional capacity assessment of the LMA to identify strengths, weaknesses, opportunities and threats.

Develop and implement an LMA strategic business plan for operational sustainability.

An institutional assessment completed and vetted thoroughly.

LMA strategic business plan for operational sustainability implemented.

Number of days of TA and

Project reports, assessments, and project site visits.

MFIs and NGOs annual financial reports.

Mid-term

The indicators in this section are milestone indicators.

The institutional assessment will include data and analysis to help define the scope of LMA functions.

advocate for financial inclusion.

Provide technical assistance to LMA to advocate for regulatory framework based on the assessed needs and recommendations.

Assist LMA to define its role in the financial inclusion strategy and regulatory framework development, Support the establishment of network of microenterprise stakeholders (MFIs, NGOs, SBA, CCIAs, 3 buyers, suppliers, etc.) to share information on new technologies, innovation, and financial inclusion services.

training provided to LMA staff.

Roles and responsibilities of the LMA defined.

LMA is able to act as an effective body to advocate for expanded financial inclusion.

evaluation attendance sheets.

Component 2 (Sub Purpose 2) Support MFIs targeting low income, high-risk, and conflict affected beneficiaries.

Output 2.1:

Grant or Guaranteed Capitalization for selected MFIs to expand access to credit to targeted beneficiaries and areas.

Provide grant funds or a guarantee scheme for matching lending capital 1:1 at the minimum to select MFIs for new loans provided to targeted individual and group borrowers including those in conflict areas.

Raise matched lending capital to support expanded financial inclusive services.

Create operational linkages between NGO/MFIs and the DCA loan portfolio guarantee

Capital reserves increased

F 4.3.2-7 Number of financial institutions receiving USG assistance in extending services to micro and small businesses.

% Institutional partners that have achieved financial sustainability disaggregated by type of institution. (NGOs vs. MFI)

Number of loans attributed to the aa guarantee loan portfolio guarantee program disaggregated by (type of borrower (first time high risk

Project reports, assessments and project site visits.

MFIs and NGOs annual financial reports.

Mid-term evaluation Progressive loan portfolio reports

Political stability and low conflict.

MFIs are committed to raising matching funding, and expanding lending and financial inclusive services to high-risk targeted groups and conflict areas.

Previously USG assisted NGOs-MFIs under LIM will participate in the LIFE project.

At least 3 to 5 new NGOs- MFIs will participate in the

3 Small business association (SBA); Chambers of Commerce, Industry, and Agriculture (CCIA).

or any other guarantee scheme (linked to inputs in output 2.1), depending on relevance of aa credit guarantee scheme to LIFE.

NGOs, business associations, and NGOs-MFIs will organize and host networking workshops and events to broaden knowledge and share beneficiaries’ experiences and lessons learned in working in targeted areas including conflict affected areas.

versus repeated borrower) gender, commercial bank)

Value of loans attributed to the DCA or other guarantee loan portfolio guarantee program disaggregated by type of borrower (first time high risk versus repeated borrower) gender, commercial bank

Number of new USG supported public-private partnerships formed.

F 4.7.1-12 will be tracked at the IR level as per the CDCS draft

F4.5.2-29 Value of agriculture and or ME rural loans.

Number of jobs attributed to LIFE USG support (disaggregated by new or maintained).

Gender 2: The proportion of project

Commercial banks are: (1) interested in participating in the DCA program or any other guarantee scheme; and (2) financial risk analysis justifies the need for ss a guarantee scheme facilitation.

Assistance for MFIs and micro-enterprises operating in conflict-affected areas will be emphasized at this level

Output 2.2:

Increased capacity of MFIs to develop suitable lending products

Provide technical assistance to select NGOs and NGOs- MFIs to develop new and suitable lending products.

Provide appropriate training material, modules, equipment or other resources to targeted, NGOs-MFIs to support innovative outreach to local

F4.7.1-16 Number of days of USG funded training provided to management and staff of financial intermediaries (will be disaggregated by the number of days designated to topics that focus on women and youth)

Value of TA package provided to targeted MFIs to support

Project reports, assessments, studies, and strategies.

Project site visits.

MFIs and NGOs annual financial reports.

Technical assistance will consist of a TA package that includes but not limited to basic business development skills and other technical skills (quality assurance, standards).

Some of the TA will focus on

(1) establishing best practices to guide MFI loan officers to effectively assess eligibility of communities

Assist MFIs to identify and establish new lending tools and products to effectively operate and expand financial inclusive services provided to targeted areas including conflict affected areas

Assist targeted NGOs, and MFIs to develop a contingency strategy for increasing the resiliency of rural communities to cope with conflicts, unexpected life events, and financial exclusion in affected rural areas.

innovation and outreach to local communities.

Number of staff of NGOs-MFIs receiving USG-funded training.

Mid-term evaluation Project training attendance

Copies of the training material and modules.

loan applications in the aftermath of conflicts; and (2) strengthening the MFI to develop resiliency and coping mechanisms for dealing with beneficiaries in conflict-affected areas.

The provision of material and equipment should support innovative outreach training (e.g., mobile training) to local micro businesses in hard to reach communities and economically marginalized women-led households.

Technical assistance will support the reduction of MFIs’ operating and service costs to expand financial services to targeted groups and conflict areas.

Component 3 (sub Purpose 3) Improve livelihoods of low-income, high risk, and conflict affected beneficiaries

Output 3.1:

Grant capital extended to targeted beneficiaries through NGOs

NGOs will provide sub-grants to entrepreneurs in the form of in-kind grant.

Number of beneficiaries receiving in-kind grants

Gender 2: Proportion of female beneficiaries.

Project reports and assessments.

Project site visits.

NGOs annual financial reports.

Mid-term evaluation attendance

Assistance for MFIs and micro-enterprises operating in conflict-affected areas will be emphasized at this level

Output 3.2:

Technical assistance

NGOs will provide entrepreneurship skills and business development

Number of beneficiaries receiving USG-funded extended to targeted beneficiaries through NGOs services training to entrepreneurs.

training

Gender 2: Proportion of female beneficiaries.

ANNEX J12 - LOGICAL FRAMEWORK