Implementer capacity matters. This is clear yet, MCC and FOMILENIO could have addressed this more proactively and earlier in the Compact. The relationship between BMI and FOMILENIO was governed through the trust agreement and an Implementing Entity Agreement (IEA), but compliance and enforcement of the agreements was a struggle throughout implementation. In hindsight, there should have been even better management of the IEA, more performance-based incentives, and potentially some technical assistance to ensure that MCC funds were used in the most optimal manner. At the close of the program, the Investment Support project ERR was lower than anticipated. This was partially because it cost administratively the same amount of money to approve $7.5 million in loans as it could have cost to execute the program with the larger originally planned amount. This does not diminish the value of the overall program, but rather highlights a missed opportunity for BMI, FOMILENIO, and MCC to invest in more SMEs in the Northern Zone.
Lesson Learned