Your SlideShare is downloading. ×
0
THE SOCIAL FUND FOR
DEVELOPMENT
FACING EGYPT'S SOCIO-ECONOMIC CHALLENGES
PRESENTED TO: MENA OECD INVESTMENT PROGRAMME
PROM...
ECONOMIC SNAPSHOT*
2012

 GDP Growth: -2.2%
 Private Sector’s Real Growth Rate: -0.1%
 Private Sector Share in Total GD...
MSMEs SNAPSHOT
 Total Number : 4.5 million
 Share in Private Sector : 99.8%

Distribution of Enterprises by Number of
Wo...
CHALLENGES
Institutional
•

Overlapping ministry mandates

•

Lack of coordination.

•

Lack of entrepreneurs‘ Participati...
MSME CONSTRAINTS
•

Demand-related constraints

•

Input constraints

•

Process and management constraints

•

Labor cons...
THE SOCIAL FUND FOR DEVELOPMENT

Micro Enterprise Development

•

Established by the Government
of Egypt in 1991 as a soci...
MICRO ENTERPRISE DEVELOPMENT
Microfinance: Mechanism

International
Development
Partners

The Social
Fund for
Development
...
MICRO ENTERPRISE DEVELOPMENT
Microfinance: Target Groups & Available Funds

EGP 260.3 million

Women Heads of Households

...
SMALL ENTERPRISE DEVELOPMENT
Credit: Mechanism

International
Development
Partners

The Social
Fund for
Development

Benef...
SMALL ENTERPRISE DEVELOPMENT
Credit: Target Groups & Available Funds

•

Small Businesses (Paid Capital:
50,000-1Million, ...
COMMUNITY & INFRASTRUCTURE DEVELOPMENT

•

Implementing integrated “Local
Area Development” projects of
“Labor Intensive” ...
COMMUNITY & INFRASTRUCTURE DEVELOPMENT
Mechanism
Selection guided
by Egypt’s poverty
map.

SFD

SFD’s Regional
Offices
SFD...
COMMUNITY & INFRASTRUCTURE DEVELOPMENT

•

Examples of community development
activities

•
•

•

illiteracy alleviation,
p...
BUSINESS SERVICES AND HUMAN RESOURCES
Services Provided by BDS

•
•
•
•
•
•
•
•
•
•
•

OSS (Registering Business)
Business...
BUSINESS SERVICES AND HUMAN RESOURCES
Mechanism

Services By
Outsourcing Specialists
SMEs
SFD Clients

Regional
Offices

S...
PRIORITY POLICY DIRECTIONS
1.

Creating a conducive legal and
regulatory business
environment.

2.

Promoting entrepreneur...
MAIN STRATEGIC AREAS FOR INTERVENTION
1- Entrepreneurship &
Culture Awareness
2- Domestic Markets &
Socio-economic
develop...
AREAS FOR COOPERATION


Institutional Capacity Building



Identification of Immediate
Financing for the Support of
Empl...
INSTITUTIONAL CAPACITY BUILDING

 Technical support to the decision making, and policy formulation
processes.
 Assistanc...
EMPLOYMENT GENERATION PROJECTS

 Support the Intensive Public Works Program in order to create jobs in
the short-run for ...
ECONOMIC GROWTH, EMPLOYMENT,
AND HUMAN RECOURSES DEVELOPMENT

 Vocational and technical training programs for workers ent...
ENTREPRENEURSHIP CENTERS AND SMES INDUSTRIAL
CLUSTERS
 Increasing the number of start-up businesses, by assisting potenti...
THANK YOU

25 July, 2012
Upcoming SlideShare
Loading in...5
×

The Social Fund for Development: Facing Egypt's Socio-Economic Challenges

694

Published on

Presented at the July 2012 Meeting of the OECD-MENA Initiative's Working Group on SME Policy, Entrepreneurship and Human Capital Development http://www.oecd.org/mena/investment

0 Comments
3 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
694
On Slideshare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
22
Comments
0
Likes
3
Embeds 0
No embeds

No notes for slide

Transcript of "The Social Fund for Development: Facing Egypt's Socio-Economic Challenges"

  1. 1. THE SOCIAL FUND FOR DEVELOPMENT FACING EGYPT'S SOCIO-ECONOMIC CHALLENGES PRESENTED TO: MENA OECD INVESTMENT PROGRAMME PROMOTING HIGH GROWTH ENTERPRISES IN THE MENA REGION MEETING OF THE WORKING GROUP ON SME POLICY, ENTREPRENEURSHIP AND HUMAN CAPITAL DEVELOPMENT - ROME JULY 17 2012 GHADA WALY , MANAGING DIRECTOR , SFD, EGYPT
  2. 2. ECONOMIC SNAPSHOT* 2012  GDP Growth: -2.2%  Private Sector’s Real Growth Rate: -0.1%  Private Sector Share in Total GDP: 63.4%  Unemployment Rate: 12.4%  Total Unemployed: 3.3 million Real GDP Per Capita (LE) Growth in Real GDP per Capita (%) Real Productivity per Unit of Labor (LE) Growth in Real Productivity per unit of L (%) Increase in L-force (net over preceding quarter) New jobs created (net new employees over preceding quarter) Unemployment rate (%) Q1 11,408 Q2 11,181 (1.8) (2.2) 9,863 9,730 1.6 2.1 322.0 120.0 267.0 38.0) 11.9 12.4 *Q2, 2012 25 July, 2012 The Social Fund for Development
  3. 3. MSMEs SNAPSHOT  Total Number : 4.5 million  Share in Private Sector : 99.8% Distribution of Enterprises by Number of Workers (CAPMAS 2006) 6% 1% 0% 21% 38%  Share in Employment: 85%  Share of Micro from MSME Sector: 92.5%  Annual Average Growth Rate: 4.2%  Average Number of Employees: 2.3% 34% 1 Worker 2 Workers 3-4 Workers 5-9 Workers 10-49 50+ 25 July, 2012 The Social Fund for Development
  4. 4. CHALLENGES Institutional • Overlapping ministry mandates • Lack of coordination. • Lack of entrepreneurs‘ Participation. • A tendency towards hypercentralization. • Weak capacities for policy development. • Lack of comprehensive and timely statistics and data Structural • “Smallness”; “missing middle” of medium enterprises • Skewed geographical distribution • Concentration of activity in few sectors and sub-sectors • Low share of MSMEs in manufacturing value-added • High levels of informality • Low representation of women as MSE owners and employers 25 July, 2012 The Social Fund for Development
  5. 5. MSME CONSTRAINTS • Demand-related constraints • Input constraints • Process and management constraints • Labor constraints • Legal and regulatory constraints • Entrepreneurship constraints 25 July, 2012 The Social Fund for Development
  6. 6. THE SOCIAL FUND FOR DEVELOPMENT Micro Enterprise Development • Established by the Government of Egypt in 1991 as a social safety net mechanism. • Focusing on job creation, community development, and mandated to support MSEs Small Enterprise Development Community Infrastructure Development Business Services and Human Resources Support Groups 25 July, 2012 The Social Fund for Development
  7. 7. MICRO ENTERPRISE DEVELOPMENT Microfinance: Mechanism International Development Partners The Social Fund for Development Banks, and NGOs (MFIs) Beneficiaries 25 July, 2012 The Social Fund for Development
  8. 8. MICRO ENTERPRISE DEVELOPMENT Microfinance: Target Groups & Available Funds EGP 260.3 million Women Heads of Households Funds 2011 (1/11/201130/4/2012) • Unemployed Youth Funds 2012 EGP 0.661 billion • Crafts Entrepreneurs • Special Needs Entrepreneurs 55,412 • Small Farmers # of Enterprises (1/11/201130/4/2012) • Active Poor • 25 July, 2012 The Social Fund for Development
  9. 9. SMALL ENTERPRISE DEVELOPMENT Credit: Mechanism International Development Partners The Social Fund for Development Beneficiaries Banks Specialized NGOs 25 July, 2012 The Social Fund for Development
  10. 10. SMALL ENTERPRISE DEVELOPMENT Credit: Target Groups & Available Funds • Small Businesses (Paid Capital: 50,000-1Million, & from 5-50 workers) EGP 737.3 million Funds 2012 EGP 1.24 billion # of Enterprises 2012 (1/11/201130/4/2012) • Funds 2011 (1/11/201130/4/2012) 9,282 Small business start-ups 25 July, 2012 The Social Fund for Development
  11. 11. COMMUNITY & INFRASTRUCTURE DEVELOPMENT • Implementing integrated “Local Area Development” projects of “Labor Intensive” characteristics. • Assisting in poverty alleviation and achieving human, economic and social development 25 July, 2012 The Social Fund for Development
  12. 12. COMMUNITY & INFRASTRUCTURE DEVELOPMENT Mechanism Selection guided by Egypt’s poverty map. SFD SFD’s Regional Offices SFD’s regional offices will oversee the implementation of sub-projects and provide assistance as may be required to sponsoring 25 July, 2012 agencies. Eligible SubProjects Community Services contracted out to NGOs Project Proposals, based on SFD’s Operations Manual. Small-scale infrastructure works contracted out to private contractors Sponsoring Agencies Central Ministry /Local government offices/ or NGO with an established track record of successful intervention and a demonstrated capacity to implement the proposed sub-project The Social Fund for Development
  13. 13. COMMUNITY & INFRASTRUCTURE DEVELOPMENT • Examples of community development activities • • • illiteracy alleviation, primary health services, environmental protection, • health & environmental awareness. Examples of public works projects: • • • • • Funds 2011 (1/11/201130/4/2012) EGP 20.5 million Funds 2012 EGP 115 million potable water pipes, sewerage, covering canals, River Nile pitching, rural roads. 25 July, 2012 The Social Fund for Development
  14. 14. BUSINESS SERVICES AND HUMAN RESOURCES Services Provided by BDS • • • • • • • • • • • OSS (Registering Business) Business Incubation Entrepreneurship Programs Standards for Labour Skills Training for Skilled Labour Technical Support Business Matchmaking Marketing Export Exhibitions and E-Market Footwear Leather Center 25 July, 2012 The Social Fund for Development
  15. 15. BUSINESS SERVICES AND HUMAN RESOURCES Mechanism Services By Outsourcing Specialists SMEs SFD Clients Regional Offices Services By SFD Departments 25 July, 2012 The Social Fund for Development
  16. 16. PRIORITY POLICY DIRECTIONS 1. Creating a conducive legal and regulatory business environment. 2. Promoting entrepreneurship culture. 3. Enhancing BDS for start-ups. 4. Facilitate access to finance. The Social Fund for Development
  17. 17. MAIN STRATEGIC AREAS FOR INTERVENTION 1- Entrepreneurship & Culture Awareness 2- Domestic Markets & Socio-economic development 3- Investment & Area Development 4- Business – Entrepreneurial Society development 5- Data & Information Bases and Networking 6- Access to finance 7- Business Environment & Regulatory Barriers 8- Employment In Small Enterprises & SelfEmployment 9- Competitiveness & Export Promotion 10- Training & Skills Development 11- Clusters Development & Modernization 12- Development of Informal Sector & Business Services 13- Development Priority Economic Sectors 14- National Support & Implementation of Small Enterprises Development Law 15- International cooperation The Social Fund for Development
  18. 18. AREAS FOR COOPERATION  Institutional Capacity Building  Identification of Immediate Financing for the Support of Employment Generation Projects.  Economic Growth, Employment, and Human Recourses Development.  Entrepreneurship Centers and MSMEs Industrial Clusters. The Social Fund for Development
  19. 19. INSTITUTIONAL CAPACITY BUILDING  Technical support to the decision making, and policy formulation processes.  Assistance in the creation of a coordination mechanism that ensures quick response to the MSME needs on the ground The Social Fund for Development
  20. 20. EMPLOYMENT GENERATION PROJECTS  Support the Intensive Public Works Program in order to create jobs in the short-run for displaced workers, with a special focus on women, and to be carried out in all Governorates of Egypt and in accordance with the poverty map. The Social Fund for Development
  21. 21. ECONOMIC GROWTH, EMPLOYMENT, AND HUMAN RECOURSES DEVELOPMENT  Vocational and technical training programs for workers entering the labour market to match the required demands of the private sector. The Social Fund for Development
  22. 22. ENTREPRENEURSHIP CENTERS AND SMES INDUSTRIAL CLUSTERS  Increasing the number of start-up businesses, by assisting potential entrepreneurs in the establishment phase through professional entrepreneurship centers  Developing of the organic industrial clusters in Egypt  Providing an efficient, timely and sustainable supply of feedstock for large-scale industries.  Increasing exports from intermediate products produced by SMEs.  Encouraging the targeted segment (youth) to join this successful industrial environment created by the cluster. The Social Fund for Development
  23. 23. THANK YOU 25 July, 2012
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×