From One Shop Stopping to One Stop Shopping - Small and Medium Enterprises Policy Development Project (SMEPol)

A Partnership between Egypt and

Canada Presentation to “Unleashing Entrepreneurship” workshop - April 2005

SMEs in Egypt

1,533,489

101,289

15,016

Micro Small Medium

71%

19%

10%

Micro Small Medium

Number Employment

What is SMEPol?

To support the GoE in the development of policies, legislation, and regulations supporting MSME

development.

Purpose

Project Duration & Budget

July 2004April 2000

CIDACAD $4.2m

MoFCAD $1.3m

IDRCCAD $0.5m

Total CAD $6.0 m

Extended to Dec. 2005

Project Results Framework

Impact

An improved policy environment resulting in reduced financial, & non-financial constraints & increased opportunities for MSME development

Outcome I

Policy Component

Outcome II

Capacity Building Component

Outcome III

Information System Component

Outcome IV

Networking Component

• July 8. 2004 Cabinet Shuffle• Key economic ministers appointed• Private sector development high priority• Taxes cut by 50%• Trust• Customs reform• QIZ signed• Stock market has surged by 65% since then

Policy Reform

Three key results:

1. Comprehensive vision adopted by the Government of Egypt,

2. Institutional framework established

3. Capacity to support the framework toward implementation

“The results to date show that SMEPoL has had an impact on both the SME policy environment in Egypt and the SME policy development process within GoE”

Results

CIDA

IDRC

Ministry of

Finance

Ministry of

Investment

Ministry of Foreign

Trade & IndustryMinisters’ Committee

SME SubCommittee

SMEUnit

SMEUnit

SMEUnit

CommitteesDirect Collaboration

1. Explicit focus on policy impact

2. Clear demand from government

3. A Minister who is a powerful champion

4. Embedding the project - inherent nimbleness

5. Partnership approach

6. Good relationships with key stakeholders

Lessons Learned to support replicability

Lessons Learned to support replicability

7.Evidence to support policy change

8. Ensure strong linkage: research community – policy maker

9. IDRC needs to take an unconventional approach to policy making

10. Persistence, patience and perseverance (policy windows)

11. Politically savvy project leadership

12. Adequate funding, able project team, strong but flexible

management and accountability structures

• Politicalization

• Freneticism

• Reprioritization

Risks and Probability

• Champion moves on

• Politics vs core values

• Weak Links (Research to Policy to Implementation)

• Shifting policy agenda

• Uncertainty is certain

• Balance of time and effort reacting and proacting

• Right question

• Probability - high

Risks and Probability

“Our interest lies in three areas:1. In the public sphere, promoting

the reform of laws, regulations and other barriers to

growth,2. …3. …”U.N. Commission on the Private Sector and

Development

International Context

Egypt’s Entrepreneurs

www.sme.gov.eg

More Information