Objectives of the study:
The Consultant shall elaborate a feasibility study for a KfW credit line for microfinance activities. The general target group shall be MSMEs in remote and structurally disadvantaged regions, in rural location or operating as informal businesses. The Consultant shall analyze the viability and suggest a project design for two thematic financing windows under the credit line with a focus on: I. female entrepreneurs/borrowers; and II: green microfinance-projects or projects with positive effects on the climate, thereunder energy and resource efficiency. A potential project executing agency (PEA) in the Arab Republic of Egypt shall be the Micro Small Medium Enterprise Development Agency (MSME-DA, “the PEA”). To achieve this, the Consultant shall cover the following points:
1. conduct a market analysis - collect and evaluate data on the microfinance market and the customer stratification in Egypt.
2. identify champions among PFIs (MFI-NGOs and MFI companies) with a strong potential for environmentally sustainable financing activities and the promotion for gender equality/gender equity within the microfinance sector, the latter with a focus on access, specialized products, credit rating technologies and business advisory services.
3. consider the capacities and technical assistance needs of the PEA as a potential Project Executing Agency and its Partner Financing Institutions (commercial banks, MFI NGO of categories A-C and upgrading potentials, MFI companies), esp. with regard to Environmental and Social Risks Management and gender mainstreaming (data, products, advisory services, outreach).
4. design potential project approaches aiming at the enhanced financial access and financial inclusion of micro and small enterprises / micro-borrowers.
The feasibility study will serve for the preparation of a KfW Due Diligence Mission.
Scope of the study:
The assignment consists of the following parts:
1. Market analysis: In-depth assessment of the microfinance sector.
2. Identification of champions among PFIs: Potential for green microfinance and the promotion of female entrepreneurs / female borrowers.
3. Capacities of PEA and PFI: In-depth assessment of institutional capacities/degree of professionalism as well as technical assistance needs of the PEA and selected Partner Financial Institutions.
4. Project design: Identification of the target group of a KfW microfinance credit line as well as design of measures tailored to the target group.
• Postgraduate degree in Banking, Finance, Accounting, Business Administration or Economics ;
• A minimum of 10 years professional experience in the preparation and/or implementation of microfinance programs, experience in the design of financing approaches for micro and small enterprises especially those operating in the informal sector and/or in remote rural geographic locations and for female entrepreneurs/borrowers (thus promoting gender equality/gender equity) is a necessary asset.
• Experience in the analysis of and program development with local financial institutions.
• Experience in sustainable (green) microfinance and the assessment of E&S risks is required.
• Regional experience in the MENA Region, preferably in Egypt.
• Arabic-speaking is an asset.
• A proven track record on green finance and gender-oriented financial inclusion is a necessary asset.
The mission will take place between Q4/2021 – Q2/2022.