Inclusive Regulations for Microfinance

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The development objective of the Inclusive Regulations for Microfinance Project for Egypt is to strengthen the regulatory and institutional framework of the microfinance sector in Egypt. The project comprises of three components. The first component, developing the regulatory framework for microfinance will support the establishment of a regulatory framework that is conducive to growth and stability of the non-bank financial institutions (NBFIs) in Egypt. The second component, establishing and operationalizing the microfinance unit at Egyptian financial supervisory authority (EFSA) aim to ensure that the microfinance unit adopts international best practices and develops the capacity necessary to implement the law and associated executive regulations effectively so as to support the growth of the overall microfinance sector in Egypt. The third component, promoting accountability, governance, and consumer protection will support EFSA in enhancing accountability and governance, as well as developing a robust consumer protection capacity within the microfinance industry, and in developing financial literacy amongst target population groups. This component comprises of three sub-components: (i) enhancing consumer protection and financial literacy; (ii) conducting study tours and on the job training in countries which have well developed systems for financial consumer protection; and (iii) building the capacity of the microfinance non-governmental organizations (NGOs) oversight board through training seminars and workshops.