Feasibility Assessment and Business Plan Preparation for Micro and Very Small Enterprise (MVSE) Financing

2014-10-31 - 2015-02-28
Egypt

Arab African International Bank (AAIB) is aiming at establishing a greenfield microfinance institution in Egypt in order to cater to the yet largely untapped market segment of the upper microfinance and the very small enterprises segment (MVSEs).
Feasibility Study Desk review on the operating environment Advanced supply side analysis Demand side analysis : Define customer segments relevant for the demand side analysis (e.g. according to turn-over of MVSEs) in order to identify the boundaries for selecting MVSEs for face-to-face interviews; Design a questionnaire including the most relevant aspects to identify the above mentioned characteristics of formal and informal Egyptian MVSEs; Based on the identified customer segment (e.g. according to turn-over), conduct face-to-face interviews with a representative sample of approximately 500 MVSEs in Egypt. Business Plan Preparation Based on Results of the Feasibility Assessment In case of a positive recommendation as a result of the feasibility assessment, the Consultant shall draft a comprehensive five-year business plan for a possible investment in Egypt, including institutional features, capital structure and governance, product and marketing strategy, regional expansion plan, sources of refinancing and financial projections. For this purpose, the Consultant shall: Assess the operating costs factors (salary levels, office rent, utilities etc.); Facilitate a strategic planning workshop with AAIB and SANAD. Topics to be addressed shall be based on the outcomes of the feasibility study and shall include among others: Definition of envisaged customer segments and key geographic areas to be targeted, analysis of the envisaged competitive positioning and the general operating environment; Key aspects of an operational plan, including products and services, marketing channels, resources needed (including human capital, building and other facilities), roll out of branches and other operating expenses; Establish key assumptions and create a five-year strategic business plan with projected balance sheet, income statement, cash flow statement, and key ratios for the new organization.