MFI Setup

Microfinance and SME Sector Support and Consulting - Egypt & Middle East:

At the outset, the work involves developing a business strategy and plan in accordance with the preliminary market assessment and the initial financial projections. These serve to map out the MFI’s bearings and guide discussions with potential investors. Details including developing comprehensive systems, policies for loan extension, and the internal control mechanisms are then formulated to form the basis of operational procedures. Ongoing technical assistance—training and financial advisory services—are essential at the early stages to ensure the footing of the new MFI and a sound performance post-launch.

Sample projects for microfinance consulting and SME development include:

Establishing a Microfinance Service Company (MSC) in Al Shamalia, Sudan.
Phase II
Clients: Sudan Microfinance Development Facility (SMDF) and the World Bank
Partner: Unicons
2011 Project – Ongoing

In collaboration with Unicons, EDG carried out a two-phase project with the objective of establishing an MSC in Al Shamalia (See Phase I, below). The work over Phase II will see the development of the Operations Polices Manual and the Operations/Credit Procedures (Workflow) Manual. The team will also begin conducting negotiations with banks and cooperatives to draft partnership agreements. Phase II will also see the training of senior management and board members, and the development of a technical report outlining the company's MIS requirements.

Establishing a Microfinance Service Company (MSC) in Al Shamalia, Sudan.
Phase I
Clients: Sudan Microfinance Development Facility (SMDF) and the World Bank
Partner: Unicons
Completed 2011

The MSC is intended to increase outreach by banks and financial institutions to non-bankable micro and small enterprises (SMEs) in Al Shamalia. Phase I involved developing research instruments for the initial market assessment. And based on the data collected, the EDG team prepared a comprehensive five-year business plan, including financial projections, for the MSC. EDG took the lead in presenting the draft business plan to investors in Al Shamalia, and finalized the document based on the input received during these roundtable discussions.