Technical Assessment: Rural Small-scale Enterprise Pilot Credit Activity in Egypt

Field testing of lending credit funds to small rural enterprises in Egypt

One year pilot project undertaken to field test methodology based on experiences of institutions such as Grameen Bank, BKK and Helwan (Egypt) Housing and Community Upgrading Program. Loan officers went to villages to make loans and open savings accounts.

This paper describes objectives set in:

  • Target levels of loans, job creation and training of national staff;
  • Undertaking eight separate credit experiments in areas of client attitudes, marketing and lending techniques.

Results show that:

  • Project exceeded expectations and more than twice number of targeted number of loans made;
  • Success can be attributed to leadership of project manager but particularly motivations of small entrepreneurs;
  • Demand has already lead to break even point in operational income and expenses;
  • Project can be replicated in Cairo in current form if minor modifications done to credit delivery system.

About this Publication

By Gardner, J. & Proctor, J.