Strategy of MEII
MEII’s objective is to increase access to finance for small and medium sized businesses (SMEs) in Egypt, and decreasing barriers to financial inclusion for over 90% of small businesses in Egypt that are in the informal sector.
SME’s in Egypt
The estimated number of SMEs in Egypt at the end of 2011 totaled about 3.04 million establishments, representing 33.7 % of total employment. Despite banking reforms, access to finance is still restricting the business environment for small and medium entrepreneurs. Banks have been skeptical of SME lending due to low returns and the affiliated high risk.
Only 10% of Egyptians have an account at a formal financial institution as of 2011, which shows a very low level of financial inclusion.
Areas of Focus
- Mobile banking
- Direct Finance
- Technical Assistance
- Central Bank of Egypt (http://www.cbe.org.eg/English/About+the+Bank/Overview/)
- BMI Research (http://www.bmiresearch.com/news-and-views/banking-sector-crowding-out-risks-to-fade
- The world Bank (http://www.worldbank.org/en/country/egypt)
- The world Bank (http://data.worldbank.org/country/egypt-arab-republic
- The world Bank (http://search.worldbank.org/all?qterm=Egypt+unemployment&title=&filetype=
- Trading Economics (http://www.tradingeconomics.com/egypt/gdp-growth-annual)
- Arab Credit Reporting (http://www.ifc.org/wps/wcm/connect/851f4900488430f4bcc5fd299ede9589/MENA+Credit+Reporting+Guide-Final-LowRes.pdf?MOD=AJPERES