MENA Initiative (Feasibility Study for Microfinance Interventions in Egypt, Jordan, Morrocco and Tunisia)

2011-10-31 - 2012-02-29
Egypt, Jordan, Morocco, Tunisia

In view of recent changes in the political environment of the MENA region LFS prepared feasibility studies for microfinance interventions in Egypt, Jordan, Morocco and Tunisia. These studies included desk studies as well as fact finding missions in the field to assess business opportunities in the finance sector of Micro, Small and Medium Sized Enterprises (MSME). The analysis included assessments of the feasibility of downscaling, upgrading and greenfielding operations and led to the conclusion that project options should be pursued in all four countries. The missions were carried out between November 2011 and March 2012.
Analysis of the macroeconomic and political situation, investment climate as well as the general business and operating environment, and conclusions regarding possible implications for NBFIs; Analysis of the current supply of financial services in general, and of financial services to MSMEs and other clients in the lower income strata in particular; Estimation of aggregate demand for financial services for MSME loans and other financial services by the target clientele; Analysis of the legal and regulatory conditions for commercial MSME finance operations; Detailed mapping of business activity, main transport/commercial routes and other market/infrastructure characteristics in urban and peri-urban locations; Meetings with potential local co-investors; Meetings with high-level officials of the Central Banks, donor organisations and other stakeholders in the financial sectors of Egypt, Jordan, Morocco and Tunisia; Identification and analysis of possible legal and licensing forms for a potential NBFI, under the premise that the NBFI should ideally offer not only credit, but also other financial services (especially savings and money transfers); In the case of Tunisia LFS prepared a business plan for the first five years of a potential NBFI’s operations