Financial Literacy for Financial Inclusion, Egypt Case. Presented by Ms. Mona el Baradei at the United Nations 23 May 2014, during "A Chance for Change" co-hosted by Child & Youth Finance International and UNCDF. #CYFI2014 #UNforYouth

1. Financial Literacy
For Financial Inclusion
Egypt Case
1

2. Role of Central Banks in Financial
Inclusion
• In emerging economies, Central Banks have a broader
mandate beyond the traditional mandates of monetary
and financial stability and banking system supervision.
• One of these mandates is to develop the banking
system with the aim of capturing the unbanked
categories through financial inclusion regulations and
policies.
• Based on that, the Central of Egypt adopted a
Financial Literacy and Inclusion Initiative.
2

3. Why the Initiative Came from the Central
Bank of Egypt?
- Population: 86.4 million (2014)
- Youth : 25% and children :31%of the population
- Real GDP growth rate (%):
- GDP/ capita (current US $) :
* sources of the data are: CAPMAS, CBE, World Bank, ISDC
3
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
3.2 4.1 4.5 6.8 7.1 7.2 4.7 5.1 1.8 2.2 1.5

4. Why the Initiative Came from the Central
Bank of Egypt?
- Saving rate: 13% of GDP (2012)
- Illiteracy rate : 29.7% (2010)
- Unemployment rate:13.4% (2013)
- 75% of the unemployed are between 15 and 29 years of age
- Male unemployment rate: 9.8%, Female unemployment rate: 25.1%
(2013)
- SME’s: 2.5 Million representing 75% of the total employed workforce
- Poverty rate: 26.3% (2012/2013)
- The lowest 30% of the population receive 13.2% of National Income
- The highest 10% of the population receive 26.6 % of National Income
(sources of the data are: CAPMAS, CBE, World Bank, ISDC)
4

5. Why the Initiative Came from the Central
Bank of Egypt?
- Contribution of the informal sector to GDP: around 40%
and contributes about 70% of the private sector
- Over and above these indicators, only 10% of the
Egyptian population are bankable.
- All of these reasons led the Central Bank of Egypt to
initiate several projects serving the Financial Inclusion
and Financial Literacy purposes
5

6. 6
Why Did the Egyptian Banking
Institute (EBI) Take the Lead?
• EBI is the Official Training Arm of The CBE
• The First Internationally Accredited Training Institute
in The MENA Region by ACCET
• 40 Member Banks (All Banks in Egypt)
• Networking Access to All Egyptian Authorities &
Financial Stakeholders
• Accessibility to Both The Supply & Demand Sides of
Financial Inclusion
• International Alliances & Networks Memberships
• 1800 International & National Experts

7. EBI Financial Literacy Activities
As a Prerequisite to Financial
Inclusion
7

8. Research Phase (2006-2010)
• Understanding worldwide best practices
• Identifying essentials for applying financial literacy in
Egypt
(Through conducting a number of desk-based researches,
market studies and speculations)
8

9. Planning and Partnership Phase
(2010-2012)
1. Conducting focus groups and surveys
2. Initiating collaborations with International NGOs, Donor
Organizations, & Banks
3. Exploring similar countries challenges and experiences
4. Bringing Financial Education Training Material from
several International Organizations - (Aflatoun- Plan-
Injaz)
5. Training and motivating Banks on developing child &
youth friendly products
9

10. Implementation Phase
(March 2012- present)
1. Initiating “Shaping the Future” National Initiative for
Financial Literacy, with Logo and a dedicated team.
2. Establishing memberships in key organizations (Board
Membership of CYFI, Full Membership of International
Network for Financial Education INFE/OECD)
10

11. Implementation Phase
(March 2012- present)
3. Conducting Financial Education awareness and training
(10,000++ beneficiaries in 2012)
11

12. Implementation Phase
(March 2012- present)
4. Developing Entrepreneurship training programs (4 Rounds,
60 Beneficiaries)
5. Conducting Awareness sessions for SMEs (4 Beneficiary
Banks, 35 Participants)
12

13. Implementation Phase
(March 2012- present)
6. Conducting awareness sessions in Governmental and
Private Universities (4 Rounds, 1000 Students)
13

14. Implementation Phase
(March 2012- present)
7. Celebrating the Global Money Week (GMW), 2013 &
2014
– GMW 2014 achieved an outreach of 360,000 Children &
Youth
– Conducted TOT sessions for 2400 employees of the
Ministries of Education, Youth, and banks employees
– Conducted 15 out of 20 activities set by CYFI
14

15. 15

16. Implementation Phase
(March 2012- present)
8. Receiving Nominations for two International Awards by
CYFI:
– GMW 2014 Award - Country Award
9. Establishing Egypt’s National Committee for
Drafting Financial Literacy Strategy
16

17. Egypt Financial Literacy
National Committee
under the auspices of
H.E. The Governor of The Central Bank of
Egypt
17

18. The Role of the National Committee
To determine the current situation with regard to Financial
Literacy in Egypt as a foundation on which to develop the
Financial Literacy strategy. This involves:
1.Agreeing on Financial Literacy definition in Egypt
2.Identifying stakeholders as well as roles and responsibilities
3.Defining areas of intervention and identifying barriers to
Financial Literacy
4.Developing the National Strategy for Financial Literacy;
setting an action plan with clear milestones and timelines
18

19. Stakeholders of Financial Inclusion
(Members of the National Committee)
i. Regulators – The Central Bank of Egypt, The Egyptian Financial
Supervisory Authority (EFSA), Stock Exchange Authority,
Ministries of Education, Higher Education, Finance, Youth &
Sports, Government Agencies and Programmes (Social Fund for
Development).
ii. Academic Institutions – Universities (Cairo University, Faculty of
Economics & Political Science), Training Institutions (The
Egyptian Banking Institute).
iii. Development Partners and Experts – International Finance
Agencies, Donor Institutions, Development Partners, Technical
Experts and Advisers, the World Bank, GIZ, CGAP
19

20. Stakeholders of Financial Inclusion
(Members of the National Committee)
vi. Other Financial Institutions – Egypt Post, and Alexandria
Business Association (NGO).
vii. Banks – Commercial Banks, Retail Banks and SME &
Microfinance Banks (National Bank of Egypt, Banque Misr,
Commercial International Bank, and Arab African International
Bank).
20

21. Conclusion
• The Central Bank of Egypt and the Egyptian
Banking Institute strongly believe that raising the
bankable population and including children,
youth and the financially excluded citizens in
Egypt will lead to the growth of saving,
investment and economic growth rates, as well
as poverty eradication which will bridge the
inequality gap and stimulate sustainable growth.
21

22. .
TIMEFRAME
.
Thanks to our partners 

23. Shaping the future Supply &
Demand Partners
23
Partner Banks Partners of outreach Partners of Capacity Building
Partners of Innovation Partners of operational
sustainability
Partners of Products Inclusive
partners
Demand Partners:

24. Shaping the future Supply &
Demand Partners
24

25. Module No.-25