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Workshop 18th Microcredit Summit

titled “Frontier Innovations in Financial Inclusion”

Empowering Women through Financial Inclusion: Measuring our Impact

14-17 March, 2016Abu Dhabi, UAE

Soha SolimanSFD Managing Director

&President of the Arab Union for Small

Enterprises

According to the International Monetary Fund in 2013:

The Arab region still has one of the lowest levels in the world in terms of financial inclusion, as only 18% of the population in the region have accounts with financial institutions, this percentage drops to 13% in women.

There is a marked increase in the total, in the accounts ownership for both males and females between 2011 and 2014 in most Arab states except the states of Jordan and Kuwait.

On the opposite side, financial inclusion records low proportions in Yemen, Iraq, and Egypt, at about 6%, 11% and 14%, respectively.

FINANCIAL INCLUSION IN THE ARAB WORLD

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Financial inclusion is much needed for women as it helps in increasing amount of regular savings along with enabling women to pay for micro insurance and obtain credit. It also helps in increasing income from employment and micro enterprise, usage of mainstream banking services that offer appropriate designed products and service.

According to Bill & Melinda Gates Foundation, in every region, more women have an account now than before. Worldwide, account penetration among women rose from 47 percent in 2011 to 58 percent in 2014.

Women are making progress – but they are still under served and the gap has not narrowed. Globally, 1.1 billion women have no access to the financial system, and there is a persistent 7 percentage point gender gap in account ownership globally; it’s 9 percentage points in developing countries. Both figures are unchanged from 2011. However, in Egypt, women are half as likely as men to have an account.

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FINANCIAL INCLUSION AND WOMEN

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There are numerous causes for the exclusion, such as:1. Behavior that makes potential customers

averse to financial products2. Cultural Norms that prevent people from

gaining access to products;3. Regulations that prohibit products, services

and practices that would enhance inclusion; and more.

BARRIERS OF FINANCIAL INCLUSION

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Managing money is a key part of everyone’s lives. Poor people everywhere are borrowing and saving in different ways for different purposes, sending and receiving money and trying to protect themselves against financial shocks. Financial institutions can play a vital role in this. An inclusive financial system is one in which rules and financial institutions are responsive to the needs of the poor, helping them to use money more productively and to develop financial security.Access to responsibly delivered financial services means that people can:

save money safely, with less risk of loss through fire, theft, fraud, etc.;

send and receive money securely;borrow for consumption or investment purposes based

on an understanding of pricing, terms and conditions; insure against risk.

IMPACT OF FINANCIAL INCLUSION

Egypt is ranked 136 from 145countries in Global Gender Gap Index 2015.

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Gender Gap Index in 2015

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 Gender Gap in Economic Participation in Arab Region - 2014

Participation in Workforce

• Men : 76%• Women : 27%

Unemployment Rate

• Women 21.3% (double the rate of men 2.3

times)

Fragile Employment

• Men 23.7%• Women 33.2%

Wage Gap • Women (less than men by 20-40%

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Social Fund For Development

Creating jobs and reducing

unemployment

MicroEnterprise Developme

nt

Enterprise Developme

nt

Fina

nce,

BDS

, & P

olic

yCommunity & Infrastructure Development

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SFD operates through a network of regional offices scattered on the level of the governorates with a total of 31 offices, in addition to the unites of one-stop shop OSS as well as NGOs with the number of 431 for micro credit projects and number of 650 NGOs for Community Development and in addition to the number of 13 banks with about 2800 branch .

SFD at a Glance

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FINANCING MECHANISMSGrants to Governorates and Ministries, to implement Labor intensive public works and community development projects through NGOs, and small contractors, aiming at providing seasonal job opportunities

Financial Delivery

Mechanisms

Grants Loans

Lending to MSEs through Banks, NGOs , and Companies (90% of Portfolio)

Direct Lending to Small Enterprises through SFD ROs (10% of Portfolio)

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2 3 4 5Venture Capital

El-Morabaha– Islamic ProductOverdraft

Machinery &Equipment's Purchase

Working Capital

Franchise System

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Financial Leasing

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NON FINANCIAL SERVICES

• One Stop Shops• Marketing and Exhibitions support

• Incubators

• Industrial and Technical support• Services Enterprise Development

• Partnership agreements• Training• Awareness

* For start-ups and existing micro and small enterprises’ 11

Mission :Promotion of Gender Equality and challenging the roles and stereotypes that lead to gender discrimination and unequal relations between women and men. While emphasizing women empowerment at all levels, and build their capacity to take decisions and enhance their access to resources and management of services and programs with the help of the Social Fund for Development.

Main Themes of the gender strategy :1. Integration of the principle of equality on the basis of gender

in all programs and activities.2. Work against all norms that lead to gender discrimination.3. Ensure the empowerment of women at all levels and build

their capacity in decision making process.4. Enhance the awareness of women on the access and

management of resources.5. Work with development partners in order to develop tailored

products targeted to women.

Gender in SFD

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Women portfolio in SFD 2015 ( Small Enterprise )The total number of projects for women 4390 projects represent 23% of the total number of beneficiaries during the period and the total funding for women are about 504.2 million pounds.

Lower Egypt40%

Urban11%

Upper Egypt42%

Border7%

Number of small enterprises owned by women by geographic dis-

tribution in 2015

Industrial12%

Trade 69%

others1%

Services10%

Animal 8%

Amount disbursed to small enterprises owned by women by type of activity

in 2015

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Women portfolio in SFD

The number of projects that women had are 83,417 projects represent 44% of the total number of beneficiaries during the period and the total funding for women are about 513.2 million pounds.

Industrial3.2%

Trade70.6 %

others0.4 %

Service7.5 %

Animal18.3%

Amount disbursed to micro enterprises owned by women by type of activity

In 2015

Lower Egypt40%

Urban2%Upper Egypt

57%

Border 1%

Number of micro enterprises owned by women by The outgoing Female for small projects Geographically dispersed during

the period in 2015

Women portfolio in SFD 2015 ( Micro Enterprise )

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The percentage of women benefiting from community development projects and training is as follows in 2015:

Non-Financial Services: in 2015

• 90% in primary health care.

• 60% to 70% in literacy classes (education).

• 45% in training-for-employment.

• 43% of the total participants in exhibitions.• 33% of the total services provided through one-stop shop

units in the governorates.• 38% marketing opportunity.• 16% barcode service.• 81% of women beneficiaries received Entrepreneurship

trainings which is equivalent to 4383 women.

Women in the Social Fund of Development

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Business women Support Program in cooperation with the (EBRD) funded from MENA transition fund (promotion of women entrepreneurship).

Project “Women Citizenship Initiative” in cooperation with UNWOMEN, in remote areas to enable them to exercise their citizenship rights and responsibilities including voting, cashing pensions, obtaining health care and accessing education services and SFD services.

A Cooperation with the International Labour Organization through the adoption of certified trainers training methodology (WEGROW) and methodology (GETAHEAD).

Examples of other initiatives aimed at women empowerment Examples of other initiatives aimed at women empowerment

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(One Village, One Product) , a project to improve the ways of life in collaboration with UNWOMEN.

Young women Employment Project part of mother and child health care initiatives in collaboration with the World Bank and the EU.

Young women Employment , a project Literacy and adult education campaigns in cooperation with the World Bank and the EU.

Examples of other initiatives aimed at women empowerment

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THANKS

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