Egypt Enhancing Access to Finance for Micro and Small Enterprises

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The objective of the Enhancing Access to Finance for Micro and Small Enterprises (MSEs) Project for Egypt is to contribute to a sustainable improvement in inclusive (region and gender) access to finance for MSEs on a commercial basis. There are two components to the project, the first component being line of credit for microfinance. The microenterprise line of credit will be channeled through banks and Non-Governmental Organizations (NGOs), and potential Microfinance Institutions (MFIs) mainly via: (i) microfinance NGOs and MFIs; (ii) banks as wholesalers to NGOs and MFIs; (iii) banks lending directly through their branch network; and (iv) a service agent lending through post office branches. Product and delivery innovations including Islamic microfinance and mobile phone banking (linked to anticipated regulatory changes), will be supported. Finally, the second component is the line of credit for small enterprise finance. The small enterprise finance component will be channeled through: (a) direct banks' lending through their branch networks; and (b) bank linkages with NGOs and potential small enterprise finance companies set-up under a new microfinance regulation.