11

Social Fund for Development Social Fund for Development

(SFD)(SFD)

Micro Finance Central SectorMicro Finance Central Sector

(MFCS)(MFCS)

October, 2009October, 2009

Cairo, EgyptCairo, Egypt

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Social Fund For Development (SFD) Social Fund For Development (SFD)

Established in 1991 by Presidential Decree No 40 and presided by the Prime Minister

Law No. 141/2004 mandated SFD for planning, coordination and promotion of the MSME sector in Egypt, specifically to:

– Contribute to creating stable job opportunities.

– Contribute to the alleviation of poverty & unemployment through Human Development & Provision of Basic Services.

– Mitigate the adverse effects of the Economic Reform Program and transition towards a free market economy.

The Role of SFD as an Apex Organization

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Microfinance Achievements Microfinance Achievements (1992- June 2009)(1992- June 2009)

Total No. of ContractsTotal No. of Contracts signed with NGO’s signed with NGO’s 512512..

Total contracted amountTotal contracted amount Loan= L.E 703 m Grant= L.E 24 mLoan= L.E 703 m Grant= L.E 24 m

Amount disbursed to NGOAmount disbursed to NGO’’s s Loan = L.E 645 m Grant = L.E 20 mLoan = L.E 645 m Grant = L.E 20 m

Amount disbursed to End BorrowersAmount disbursed to End Borrowers Loan = 1,695 m Grant= L.E 13 mLoan = 1,695 m Grant= L.E 13 m

Total No. of ClientsTotal No. of Clients773,212773,212

Total No. of Jobs Created Total No. of Jobs Created 926,052926,052

44

OutreachOutreach

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Focusing on Improving & Promoting Safe Focusing on Improving & Promoting Safe Work Places within MicroenterprisesWork Places within Microenterprises

Through MFI’sThrough MFI’s Loan Officers: A supportive relationship Loan Officers: A supportive relationship

with business owners through the loan with business owners through the loan officers.officers.

Training: For Loan Officers to improve Training: For Loan Officers to improve working conditionsworking conditions

Credit: Improving working conditions Credit: Improving working conditions through introducing a new “dual purpose” through introducing a new “dual purpose” loan product. Dual purpose loans are loan product. Dual purpose loans are generally loans that provide credit plus generally loans that provide credit plus funds to cover improving working funds to cover improving working conditions. conditions.

Focusing on Improving & Promoting Safe Focusing on Improving & Promoting Safe Work Places within MicroenterprisesWork Places within Microenterprises

Code of Conduct: Working with micro Code of Conduct: Working with micro entrepreneurs to develop a code of entrepreneurs to develop a code of conduct that governs the working conduct that governs the working conditions.conditions.

Hazard Identification, categorizing & Hazard Identification, categorizing & mitigation.mitigation.

Promoting & Protecting the Interests of Promoting & Protecting the Interests of Children Who WorkChildren Who Work

Indirect Loans to Working Children

Vocational Training to children to transform from dangerous jobs to safer sectors.

Opening Illiteracy classes within the MFIs.

Promoting & Protecting the Interests of Promoting & Protecting the Interests of Children Who WorkChildren Who Work

Linking the children to Health units

Awareness sessions to children’s parents on working hazards and means of receiving a micro loan.

Awareness about gender and female participation to have a career

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THANKSTHANKS