Applicant: Ministry of Social Solidarity (MOSS)

Implementing Agency: Ministry of Social Solidarity (MOSS)

Geographic Area: Governorates of Assiut, Qena and Sohag    

Total Project Cost: LE 37,500,000 (Euro 5,914,830)                       

Project Duration: 3 years                                          

Funds Transferred at May 2006: LE 23,899,063 (Euro 3,769,570)                                                     

Start Date: 1^st August, 2004                                                           

Completion Date: 31^st  July 2007

Objective

This is an expansion project to the successful “Poverty Alleviation Program” implemented by the Italian Cooperation together with the Egyptian Ministry of Insurance and Social Affairs in the Governorate of Giza and Minya.

The project’s purpose is to reduce unemployment by encouraging poor people of the targeted areas, with a family income of less than LE 900 a month, to participate in the Egyptian micro-economy. A revolving loan scheme is the main tool of this program. The loan can be used for starting new activities or expanding the existing ones as well as providing social services (sanitation, water toilet Maintenances, birth certificates, ecological ovens, a library, potable water, ID cards and a socio-cultural club) to the target group.

Expected Results

In three years the project plans to achieve the following results:

• A Revolving fund scheme for each Community Development Association (CDA) created, functioning and sustainable.

• Creation of new employment increased.

• Monthly income of beneficiaries increased.

• Women’s status in terms of income and community participation improved

• PAP, MOSS and CDA’s staff trained to provide the required services and support to the beneficiaries.

Progress at May 2006

The project aims to improve the socio-economic living conditions of impoverished people from thirty six CDAs (Community Development Association) located in the governorates of Assiut, Qena and Sohag.

CDAs play a crucial role in distributing loans as they are the main channels to reach the target group. In each CDA a “credit loan unit” is established. The beneficiaries must satisfy the following criteria:

1. between 21-60 years old
2. Egyptian nationality
3. valid ID Card.
4. family monthly income up to LE 900
5. individual monthly income not less than LE 150 
6. good reputation.
7. resident in one of the target areas

The program finances only activities that belong to the following four business categories:  Agriculture, Service, Commerce and Industry. 

To date, 3500 loans, with a total amount of 2,574,000 LE, were disbursed in 18 CDAs with a repayment rate of around 99%. The interest charged is 11% with an average duration of three months. Up to August 2005, 18 CDAs received LE 143,000 of which LE 133,000 for revolving loans and 10,000 LE for social projects consisting of the supply of clean water and sanitation facilities, construction of libraries and socio-cultural centres and issuing and delivering ID cards.  Already more than 1500 ID cards have been issued to women beneficiaries.

The project’s capacity building component focuses on training the CDA’s board members, the staff working in the credit units and the MOSS employees.

In addition the project provides vocational training to help the beneficiaries run their activities efficiently.