Background

The current Phase IV of cooperation between UNDP and SFD started in 2008 and was designed to a) further develop and enhance the technical and institutional capacities of SFD to become amongst the first tier of national development agencies operating in middle-income countries; and b) support SFD efforts aiming at taking all necessary exit measures to allow for it to become a sustainable organization that contribute in poverty reduction and job creation in Egypt, and to be able to finance its various activities from its own resources, with a board headed by the prime minister.

The project aims at strengthening the capacities of the Social Fund for Development (SFD) in order to become an effective agent for inclusive development in Egypt through:

• Enhanced institutional and operational efficiency;
• Improved planning, monitoring and evaluation for development results;
• Increased access to improved financial and non-financial services for Small, Medium Enterprises (SMEs);
• Improved methodologies and business processes targeting human and community development interventions to become more sustainable and aligned with the local environment.

In April 2017, Prime Ministers’ decree no. 947 for year 2017 was issued thereby establishing the new entity “Micro, Small and Medium Enterprise Development Agency”.  The said decree was later on amended in November 2018; bringing MSMEDA under the umbrella of the Prime Minister.  By virtue of those decrees, MSMEDA became a fund that is also concerned with the small, medium and micro enterprises as well as entrepreneurship.

Accomplishments

MSMEs directly empower women and youth. Through the UNDP-MSMEDA partnership, MSMEDA has 11.2 Billion Egyptian Pound disbursed as loans for financing MSMEs which reached 526,858 micro and small-sized enterprises and created around 802,434 job opportunity. Women have highly benefited from the financial services where 48% of the total number of beneficiaries were women. Moreover, 45% of the total were in the age group between 20 and 35 years old.

The collaboration didn’t only provide financial services, but it has been extended to building people’s capacities to run their own projects. Between 2017 and 2019, MSMEDA held 510 training workshops on entrepreneurships which benefited at least 11,947 participants.

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