MALAWI Business Environment Strengthening Technical Assistance Project (BESTAP) Impact Evaluation CROSS-COUNTRY WORKSHOP FOR IMPACT EVALUATIONS IN FINANCE AND PRIVATE SECTOR DEVELOPMENT Dakar, February 1-4, 2010 Lynda Ndovie

Title PROJECT COMPONENTS Property rights Institutions & Business Facilitation PSD Support Institutions and Services Access to Finance and Productivity Capacity Building and Implementation Support High-court Commercial Division Registration one- stop shop Matching Grant scheme - BUGS Creation of Project Implementation Unit Review of economic laws Private – Public dialogue Improve systems for Land titling Support to PSD Department in MIT Improve systems for registration PPPs

Title 1.Improving access to Commercial Justice (High Court Commercial Division) - Impact evaluation to randomly assign cases from the Magistrate Court to the Newly created HC- CD (treatment group). Is the new court more efficient? Does it improve trust in the judiciary? 2.Land titling – Impact evaluation to test different targeted incentives to promote Land titling. Following encouragement design, second evaluation to test effects on access to finance and other outcomes of Land titling. Should the government proactively encourage land titling for business development? How? 3.Business registration – The impact evaluation to test different targeted incentives to promote business registration. Following encouragement design, second evaluation to test effects on access to finance and other outcomes of business registration. Should the government proactively encourage registration for business development? How? 4.Business Growth Scheme (BUGS) INTENDED IMPACT EVALUATIONS

Title Business Growth Scheme (BUGS) Set up to provide direct technical assistance in a form of matching grant to individual private firms in Malawi. A total of US$ 2,000,000 (two million) was allocated to be disbursed in matching grants to eligible firms over the 5 years project period ( ). As at December 2009, 1253 firms have inquired for BUGS assistance. INTERVENTION

Title Does BUGS services enhance growth of businesses who have a maximum of 10 employees in Blantyre and Lilongwe cities? Other Outcomes of interest:  Sustainability  Formality  Entrepreneurial activity  Gender disaggregated effects on business owners EVALUATION QUESTIONS

Title Randomized Phase-in: BUGS has limited resources (2 centers with 7 employees) available at a particular time hence the clients can not be serviced all at the same time. EVALUATION DESIGN

Title STEPS 1.Promotional campaign to attract interest in BUGS resulting into a list of businesses that will participate in the study. 2.Randomization from the list over a period of time (four periods of 6 months each). Everyone is treated but in a phase-in process. The ones that initially get the grant are treatment while those waiting are the control group. EVALUATION DESIGN

Title Size: 1800 firms Period: 18 months 4 groups: 450 firms (75 businesses/month) treated each 6 months (last group only treated after the evaluation is completed) Randomization stratified by gender Surveys: Baseline, mid term after 9 months and follow up at 18 months SAMPLING AND DATA

Title 1.Concept note: 1 March, Reaching consensus with BUGS: April Design of promotional campaign: April Promotional campaign: May/June Hiring survey firm: April – June Hiring field coordinator: April – June Preparing Baseline survey instruments : May – July Baseline survey: August– October Baseline analysis and report: November – December Randomization: December Intervention: January 2011 – June Mid term survey: October Follow up survey: July – August Impact Evaluation analysis and report: September – December Dissemination of results : January 2013 TIMELINE FOR IMPACT EVALUATION

Title IMPACT EVALUATION TEAM: STAFFING Project Manager of the Impact Evaluation (Lynda Ndovie, M & E Specialist) BUGS Manager (Robert Kyukyu) Ministry of Industry and Trade representative (Director of Private Sector Development) World Bank Resident Senior PSD Specialist (Brian Mtonya) WB Impact Evaluation Specialist (Francisco Campos) Field coordinator (To be hired)

Title 2010  Field Coordinator: USD 30,  Promotional campaign: USD 18,  Baseline survey: USD 144,  Midline survey: USD 36,  Follow up survey: USD 144, BUDGET

ZIKOMO KWAMBIRI