Financing for MSME Financing III / Microfinance: Consulting Services for the elaboration of a Feasibility Study

Background:

The Government of Egypt has applied for financing by KfW Development Bank (“KfW") through an Executing Agency for funds to be borne by a special study and consultancy fund provided for such purposes by the German Federal Ministry for Economic Cooperation and Development. The Micro Small Medium Enterprise Development Agency (MSME-DA), acting as the implementing agency, intended to use this funding for the cost of a feasibility study under Financing for MSME Financing III / Microfinance.

Objective:

To elaborate a feasibility study for a KfW credit line for microfinance activities. The general target group shall be MSMEs in remote and structurally disadvantaged regions, in rural location or operating as informal businesses.

Analyse the viability and suggest a project design for two thematic financing windows under the credit line with a focus on I. female entrepreneurs/borrowers, and II: green microfinance-projects or projects with positive effects on the climate, thereunder energy and resource efficiency).

Results:

  • conduct a market analysis - collect and evaluate data on the microfinance market and the customer stratification in Egypt;
  • identify champions among Partner Financing Institutions (PFIs) (MFI-NGOs and MFI companies) with a strong potential for environmentally sustainable financing activities and the promotion for gender equality/gender equity within the microfinance sector, the latter with a focus on access, specialized products, credit rating technologies and business advisory services;
  • take into account the capacities and technical assistance needs of MSME-DA and the PFIs (commercial banks, MFI NGO of categories A-C and upgrading potentials, MFI companies), esp. with regard to Environmental and Social Risks Management and  gender mainstreaming (data, products, advisory services, outreach);
  • design potential project approaches aiming at the enhanced financial access and financial inclusion of micro and small enterprises / micro-borrowers.