RESULTS MEASUREMENT FRAMEWORK - PILOT *

RESULTS MEASUREMENT FRAMEWORK - PILOT * REM MONITORING REPORT - June 0 Project Name Operation n Access Holding + Access Holding II. 3.6 Mandate Country Sector Subsector Amount Project Cost ACP - Cotou Agreement Madagascar, Liberia, Zambia, Tanzania, Nigeria, Azerbaijan, Tajikistan Microfinance Access Holding (3.6m) and Access Holding II. (.73m).6m Appraisal - January 007 Monitoring - June 0 Project Ratings Pillar Pillar Pillar 3 3 3 Loan Officer PJ Contact ECON Contact Monitoring Officer * Preliminary template - work in progress /9

Pillar - Contribution to Mandate Objectives Mandate: COTONOU (ACP) A - Consistency with mandate objectives Comment (Select relevant EIB mandate objectives and explain how the project matches regional priorities) General Mandate Objectives Regional Priority (). Local Private Sector development in Particular Support to SMEs Support the ACP financial sectors and have a catalytic effect by encouraging the mobilisation of long-term local resources. Support a wide spectrum of the institutions including banks, leasing companies, microfinance institutions and private equity funds, through long-term lines of credit (also in local currency) as well as risk capital instruments (equity, quasi-equity and guarantees). Develop the local financial sectors' capacity to effectively channel financing to small business, and fostering the capacity of ACP markets to mobilise domestic savings. Develop invative loan and guarantee structures to enhance the value-added of the operations. As a matter of priority, special attention will be devoted to improving access to financial services for the poorest and underserved. Leverage private funding and fully involve private actors, in particular in support to SMEs and microenterprises, (essentially using credit lines to "suitable financial intermediaries", but also through equity participations in funds and guarantees of a specific portfolio). Seek for SME projects with a significant impact on employment and try to improve the access of SMEs to risk-sharing instruments. Investments in selected early-stage or Greenfield Microfinance Institutions (MFIs) are fully in line with the Article "Investment and Private Sector Development" of the Cotou Agreement. The operation is fully consistent with the objective of supporting financial institutions including MFIs with a view to developing the local financial sector capacity to channel financing to small businesses and mobilize domestic savings. Moreover it focuses on one of the priority areas, namely improved access to financial services for the poorest and underserved. The operation conforms to the Cotou general objectives as outlined in Article, including "the objective of reducing and eventually eradicating poverty", as well as "sustained ecomic growth, development of the private sector, (...and) the promotion of social development". Notes: () Regional priorities as defined in the Operational Guidelines currently being defined by the EC and EIB /9

B - Contribution to EU country and regional priorities and country development objectives Outputs Outcomes Impacts Contribution to EU priorities and country development objectives Creation of Access Microfinance holding by Shareholder agreement between EIB, LFS, IFC, KFW, OTMF and MA Initial capital of Access Holding of Euro 8 million for investment in selected early-stage microfinance institutions and gradual capital increase to 0 million as of June 0. Improve access to finance for micro and small enterprises through the creation of 7 investee MFIs in 7 countries, with 9,000 borrowers and average size loan of Euro,09 as of June 0. Improve access to savings for microentrepreneurs and to banking services more generally. creation of,880 jobs in new MFIs, sustaining an estimated 00,000 jobs in final beneficiaries. Develop investee MFIs into leading providers of financial services in their respective countries, setting standards in terms of transparency, efficiency, and customer orientation. Contribute to the strengthening and development of the microfinance sector in the selected countries. Facilitate the transfer of kw-how, invation and best-practices among its investees through its TA platform and its investment strategy which aims at creating regional clusters. At the current stage, the microfinance industry lacks commercial strategic investors which can combine financial muscle with the technical kw-how in building up and managing MFIs. Supporting the development of MIIs is expected to induce a powerful competitive stimulus to existing operators, to boost invation and customer orientation in the industry and lessen the current high degree of concentration of funds invested in a single microfinance network. Furthermore, the creation of AccessHolding will also contribute to reducing regional imbalances in the microfinance industry by strengthening the retail MFI sectors in Central Asia and Sub-Saharan Africa, which are still much less developed and diversified than national industries in Latin America and Eastern Europe, respectively. By improving access to finance for micro and small enterprises in some very shallow markets, the project is expected to contribute to private sector development, job creation and improve living-standards of low-income households, thereby contributing to poverty reduction. } Investments in target countries are in line with national development objectives to increase access to finance for small enterprises and to promote job creation, including self-employment, among socially vulnerable groups, e.g. the poor. In a number of ACP states, the necessary legislation has been put in place to facilitate investments in microfinance. For example, in 005, Nigeria introduced the Microfinance Policy, Regulatory and Supervisory Framework, which was revised in April, 0. The policy recognizes existing informal institutions and brings them within the supervisory purview of the Central Bank of Nigeria creating a platform for the regulation and supervision of microfinance banks (MFBs) through specially crafted regulatory guidelines. Similar provisions mainstreaming microfinance into the financial sector have been introduced in other countries, including Tanzania, Zambia and Liberia. Overall Pillar Rating* / Comment The operation is consistent with the Cotou mandate objective of supporting private sector development and supporting SMEs. It is expected to make a significant contribution to EU and national priorities in the concerned countries by improving access to finance for micro and small enterprises, promoting job creation amongst low-income groups, contributing to private sector development and ultimately poverty reduction. Monitoring June 0 Overall Pillar Rating* monitoring / Comment Over the first years, Access Holding has performed better than expected, successfully creating 5 new MFIs in additional to the two which were already operational in Jan 007, bringing the total number of branches to 6, improving access to finance for 0,8 depositors and 6,6 borrowers of which more than 50% are women. Contribution to financial sector development has been particularly significant in Liberia, a post conflict country with a particularly shallow financial sector, with an investment in the first regulated MFI. * Rating scale: - excellent; 3- satisfactory, - partly unsatisfactory, - unsatisfactory 3/9

Pillar - Results Indicators Sector/Subsector: Microfinance Investments Rating January 007 - Excellent - Unsatisfactory Rating June 0 Comment (monitoring) June 0 Overall Pillar Rating / Comment () 3 AccessHolding operates in relatively high-risk countries but is managed by an experienced sponsor and management team detaining a strong track-record. Expected development results in terms of improved access to finance for micro and small enterprises, job creation and financial sector development are high Overall Pillar Rating monitoring / Comment RISK CONSIDERATIONS 3 AccessHolding has surpassed expected results and is managed by an experienced sponsor and management team detaining a strong track-record. The operating environment remains weak. Soundness of the intermediary () Financial soundness Financial Risk Rating (-) Sound financial intermediary Access Microfinance Holding was created in 006 by a Shareholder agreement amongst EIB, LFS, IFC, KfW, OTMF and MA. Corporate Governance Governance & Management Risk rating (-) Access Microfinance Holding is governed by 3 corporate bodies, (i) the Shareholder's Assembly, for which the IF's voting rights are determined by the number of shares held, (ii) the Supervisory Board, chaired by a representative of the IF and taking strategic decisions, including decisions on investments, and (iii) the Management Board consisting of members appointed by Shareholder's Assembly. Environmental and social safeguards E & S rating N/A N/A E&S rating Framework will be developed in 0 for Financial Sector operations. At the creation of AccessHolding shareholders agreed on SEMS reporting framework and the respective responsibles were appointed.. Quality of the operating environment Macro Ecomic Environment Macro-ecomic risk rating (-) Financial Market structure and dynamics Market structure risk rating (-) Regulatory and legal framework Regulatory and legal framework risk rating ( ) Weak environment Portfolio comprised mostly of low-income countries, whose growth prospects are plagued by weak institutions and governance problems. Narrow based ecomies dependent on aid and/or single commodities Under-developed financial sectors. Low competition. Poor risk management capacity. Asset quality is a concern. Vulnerable political and ecomic instability. Partial adherence to Basle Core Principles /9

EXPECTED RESULTS - Jan '07 (3) Access holding has achieved significant development results, improving access to financial services for 6,00 borrowers and 0,8 savers, of which more than 50% are women, through 6 branches in 7 low-income countries, creating,800 skilled jobs and contributing to sustaining approximately 0,000 jobs in MSEs. It is contributing to developing the financial sectors in and setting best practice standards in terms of transparency and ESG standards for the micro-finance sectors in these countries. Indicator (Unit) Baseline (value at appraisal) January 007 Expected value at 5 years (June 0) Actual value at 5 years (June 0) Comment (monitoring) (June 0) Outputs Increased liquidity/capital of Intermediaries Funding provided to intermediaries (Eur) 0 0,000,000 38,6,053 Commitments are made pro-rata based on the existing shareholding. EIB holds.% of stake. Following the capital increase, the total size of the Company w amounts to 38.6m. Other shareholders include IFC, FMO, KwW, LFS, MA, OTMF and CDC. Number of intermediaries (#) 0 AccessHolding S.A. Outcomes - Ecomic Performance Investments (#) 0 0 7 Actual investments consist of 6 greenfield and existing financial institution. For MIIs only: Increased access to finance for investee companies Investments (Eur) Country (# -include countries outside of ACP) Country (names, amount per country - include countries outside of ACP) 0 Mozambique, Azerbaijan,80,000 7 Azerbaijan, Mozambique, Madagascar, Tanzania and Uzbekistan, Africa, n-africa 9,655,8 7 Madagascar, Tanzania, Liberia, Zambia, Azerbaijan, Nigeria, Tajikistan AccessHolding invests exclusively in financial institutions providing financial services to micro, small and medium-sized enterprise and lower income clientele. The investment focus is on newly established greenfield MFIs. At the time of appraisal MFBA and Socremo Mozambique were operational. The number of countries on target. Mozambique fully exited. Uzbekistan t pursued. Loans to final beneficiaries (#) 8, 9,006 6,6 Loans to final beneficiaries (Eur) 38,33,339 85,006,375 86,58,97 Increased access to credit for final beneficiaries of which women (where possible) (%) Loans balance to final beneficiaries (Average size) (Eur),08,09 ABN = 58.56% ABM = 59.% ABL = 6.5%,7 Data available only for AccessBank Nigeria, Liberia and Madagascar A typical average microfinance loan tends to be smaller. Branches # 6 Savings to final beneficiaries (Yes/No) All investees are regulated by central bank and whenever possible deposit collecting. Increased access to savings for final beneficiaries (MII or direct) Savings to final beneficiaries (#) 5,768 0,8 Savings to final beneficiaries (Eur) 3,6,656 58,53,0 Increased competition (y/n) Creation of 7 new MFIs. Financial Sector / Capital Markets Development New products (e.g. hybrid loans, mobile banking, leasing, etc.) (y/n) (specify type and unit) Access to micro saving, products for SMEs. operating in a shallow market (y/n, Credit of private sector/gdp (%)) Credit to the private sector in the portfolio countries is well below the average for sub-saharan Africa ranging from.7% of GDP in Madagascar to 30% in Nigeria. Data is t available for Liberia & Tajikistan. Rating - The operation is expected to significantly increase access to micro-finance services, both lending and savings, and contribute to developing very shallow financial sectors. Rating - Results largely in line with expectations with large number of final beneficiaries receiving access to loans and saving products. More than 50% of beneficiaries are women. 5/9

Indicator (Unit) Baseline (value at appraisal) January 007 Expected value at 5 years (June 0) Actual value at 5 years (June 0) Comment (monitoring) (June 0) Core results Employment sustained Fiscal revenues generated For MIIs: Direct employment in investee companies (#FTE) Direct employment in final beneficiaries (including self-employed) (for direct investments) (#FTE) Net taxes and fees paid to the Government by intermediaries & investee companies (euro) 59 0,880 00,900 53,000 3,66,576 outstanding staff total 30,70outstanding business loans to micro, small and medium enterprises, including selfemployed, supports an estimated 00,900 FTEs. The amount is cumulative since January 007. Rating - Core Results 3 Rating - Core results The creation of 7 MFIs in 7 countries is expected to create a considerable number of skilled jobs in MFIs. The loans are expected to contribute to sustaining a large number of jobs in micro and small enterprises. Estimates of job creation were t available at appraisal. Fiscal revenue generated for the government is expected to be moderate. Access Holding had a significant impact on employment, creating,880 jobs at the investee level and contributing to sustain 00,900 jobs in final beneficiaries. - ESG performance Implementation of Client Protection Principles (Smart Campaign) by intermediaries (-) CPPs have been formally adopted by the intermediary. Implementation of Client Protection Principles (Smart Campaign) by investee companies (-) To date of Access Holding's network have directly endorsed the CPPs: ABA, ABM, ABL and ABT. AccessBank Azerbaijan joined the SMART Campaign in 009 and became the first MFI in the country to undergo the Smart Assessment in 0. Micro-finance exclusion list implemented including core labour standards, illegal improved environmental and social standards activities, excluded sectors (y/n) Microfinance exclusion list contains excluded activities such as forced labour or child labour, production of or trade in arms, alcohol, tobacco, radioactive material, asbestos fibres, banned pharmaceuticals, pesticides, PCBs, ozone-depleting chemical compounds and production or activities that impinge on the lands owned. Furthermore, prohibited activities include gambling, speculation in currencies or real estate, investments in securities, trade in wildlife and drift net fishing for nets exceeding.5km in length. Social and environmental system officers designated (y/n) AccessHolding's Management Board has assigned a member of the Management Board to act as AccessHolding's Social and Environmental Officer with responsibility for the administration and oversight of the company's Social and Environmental Management System. The appointment is effective as of November 006. Annual reporting on Social and Environmental Performance (y/n) AccessHolding's S&E Officer receives periodic assessments from AccessBanks on their status of social and environmental performance. He/she prepares an Annual Social and Environmental Performance report for investors reporting on the whole AccessHolding network. Improved corporate governance Intermediary has corporate governance document/report based on national or international best practice principles (specify - e.g. OECD, GCGF, etc.) (y/n) Access Holding displays a standard governance structure, consisting of the three corporate bodies of German Joint Stock Company: General Meeting of Shareholders (Shareholders' Assembly), Supervisory Board and Management Board. Conflict of interest policy implemented (y/n) Annex B to the Shareholders' Agreement entails the Conflict of Interest policy which states that "any member of the Supervisory Board shall at all appropriate times inform the Supervisory Board of any conflict of interest or potential conflict of interest..." Rating - Client Protection Principles and ESG were endorsed at the Holding level. Rating - Client Protection Principles and ESG have been implemented by the financial institutions. 6/9

Indicator (Unit) Baseline (value at appraisal) January 007 Expected value at 5 years (June 0) Actual value at 5 years (June 0) Comment (monitoring) (June 0) 3 - Financial Performance of Intermediary Portfolio quality (NPLs 30 days %) 0.% 0.93% Baseline NPLs refer to Azerbaijan and Mozambique operations of January 007. Improved Financial Performance of Intermediary ROE (annual %) 0.% 6% 7.0% Same as above. Capital Adequacy ratio (%) N/A for Holding Companies. Rating - 3 3 In January 007, the company reported a small profit of EUR 9,57 and total equity of EUR 6,88,07. Rating - 3 The net profit of the company increased to EUR 7,336,57 and total equity amounted to EUR 98,67,59 in June 0. Notes: - "Intermediaries" : EIB's direct counterparties (including MIIs, MFIs, Banks and any other microfinance related services providers). "Investee companies": MIIs' portfolio companies. "Final beneficiaries": End-clients. Notes: () Pillar rating is based on a weighted average of the rating for expected results and the risk ratings. () In the case of loans: Financial Soundness, Corporate Governance and Quality of the Operating Environment risk ratings are taken directly from internal rating score. In the case of equity investments: an assessment is made based on financial analysis of the company. The risk rating scale is -low, -moderate, 3-significant, -high. (3) The expected results rating is based on a weighted average of the ecomic, financial and ESG performance. 7/9

Pillar 3 - EIB Additionality Indicator Definition Indicator Value Actual value at June 0 Comment Financial Instrument (where applicable) Provision of long term resources Rating ( - ) Provision of long term resources through an equity investment, with guaranteed exit strategy. Local currency funding Rating ( - ) Equity investments are made in local currencies. Invative product or product n available in relevant market Rating ( - ) 3 3 Private equity is available to a limited extend in countries concerned by this investment (incl. post conflict Liberia) Rating Rating Structuring and sector contribution Participation in first closing Y/N Project preparation/leadership in structuring Rating ( - ) Project implementation support Rating ( - ) TA support and regular participation in Supervisory Board meetings. No/Yes (select output/outcome indicators) value of TA (Eur),000,000,000,000 TA relates to the creation of Greenfield MFIs and LFS's business model of allocating expatriate staff members to support the first years of operation of the institution. To date.6m of TA has been disbursed. A separate contract was signed in 008 with ABL allocating EUR m of grant funding. Technical assistance provided HR development - people trained (#) 70 70 Short-term experts are assigned for development of a HR strategy, HR policy and procedures, the recruitment and training of HR officers and for in-house training events. Risk Management IT systems implementation and support Short-term experts are assigned for procurement and installation of computer programmes, data processing systems and management information systems, for establishment of manuals, and for recruitment and training of local IT experts necessary for the Company's operation and development. Rating 3 Rating 3 The Bank supports Access holdings through technical assistance and through its active representation at board level. To date.6m of TA has been disbursed to AB Madagascar, AB Tanzania, AB Zambia and AB Nigeria. 8/9

Indicator Definition Indicator Value Actual value at June 0 Comment Standards & Assurance Demonstration effect Rating ( - ) A continuation of the current successful track of the Investment Company is expected to have a significant demonstration effect by helping to attract additional resources from private and public sources to microfinance. Enhanced cooperation with other IFIs / DFIs Rating ( - ) EIB's participation alongside other IFIs is crucial in securing the critical capitalization level for the Company to pursue its strategic objectives in the years to come. Contribution to raise standards (ESG and procurement Rating ( - ) 3 ESG standards were included in the Shareholder's agreement and the CPPs have been endorsed recently. stds) Total leverage Total target fund/eib contribution amount 5. 7. Following the entry of CDC and FMO, EIB's share was diluted to.% Total commercial investors funding/total IFIs Catalytic effect 0.6 funding. Co-investment with IFC, CDC Group and KfW Development Bank. LFS Financial Systems, the Sponsor of the Company is also a co-investor directly and through a special investment vehicle (MicroAssets) created for its staff to participate. OTMF is also a shareholder of AccessHolding. Rating The Bank's participation in the capital increase builds on the proven track-record of the Company and its Management which successfully delivered outstanding financial results combined with the developmental objectives. Rating Overall Pillar 3 Rating / Comment Overall Pillar 3 Rating monitoring / Comment A continuation of the current successful track of the Investment Company is expected to have a significant demonstration effect by helping to attract additional resources from private and public sources to microfinance. 9/9