¨       Present in Egypt since 1998 through the Marketing Link Program/Phase I

¨       May 2000: Acknowledgment of Egyptian Ministry of Social Affairs

¨       Increased commitment to Egypt through new projects aiming at:

•  i) socio-economic empowerment of producers in marginal communities, with particular focus on women

• ii) preservation of traditional, historical and environmental heritage as income generating and job creation tools

• iii) vocational training for the youth and women aimed at job creation in marginal communities

• iv) community empowerment

• v) capacity building for members and operators of grass-rooted associations

Project title:  : commercial and institutional support to Producers’ Associations in Egypt

Funded by: Ministry of Foreign Affairs – Italian Cooperation – Decentralised Cooperation – Regional Councils (Emilia-Romagna and Liguria)

Implementation period: 1998-2001

Aim: Improving the economic perspective of Egyptian handicraft production

Beneficiaries Vulnerable People, Women, Men and Youth – Members of handicraft associations

Target areas Aswan, Cairo, El Harish, Sohag, Marsa Mathrou

Implementing Agency COSPE

Counterpart North-South Consultants Exchange (NSCE)

 PROJECTS IN PIPELINE

•  Poverty Alleviation and Environmental Enhancement in Northern Cairo

PROJECT HISTORICAL BACKGROUND

In 1991 the Handicraft Producers and Marketing Link Center Program (HPMLC) was initiated with a grant from the Dutch government. The Marketing Link center was established as an effort to create an economic link between the poor producers of traditional crafts and the new markets consisting of urban professional Egyptian and expatriate communities. Initially, this was successfully done through bazaars, later the Marketing Link Center Showroom was established, providing a permanent exhibition for the producer groups and their products.

In 1997, World Education entered into the Marketing Link Program. This new phase sought to provide a more holistic approach towards poverty alleviation. In addition to providing a link between sellers and buyers the program was expanded to include new goals: to improve the access of traditional craft producers to sources of economic, human and social capital and thus to build their capacity to develop and maintain sustainable livelihoods. The program began to incorporate fair trade as well as training components.

In November 1998, COSPE started the implementation of the new program MLP/ Phase I, funded by the Italian Ministry of Foreign Affairs, to strengthen producers and producer groups to develop their production and management skills, as well as support the activities of the Marketing Link Center to market their goods.

In the first half of 1999, the trade and marketing activities of the marketing link program were brought under a separate organization, the Egypt Craft Center (ECC). ECC was to become a financially self-sustainable, independent non-profit Fair Trade organization. The Marketing Link Program/Phase I worked to support ECC in fulfilling its mission as well as strengthen producers and producer groups and was concluded in September 2001.

The opportunities stemming from the successful completion of the first project clearly indicated that the momentum should have not been lost.  Therefore, COSPE designed the present project Marketing Link Programme-Debt Swap  for funding under the Italian-Egyptian Fund for Debt for Development Swap programme.

Development Objective

The project aims at contributing alleviate poverty among vulnerable groups (rural residents, women, youth, unemployed) by supporting the development of income generating activities in the craft and agro-processing sectors.

OVERVIEW OF PROJECT’s TARGETED SECTOR

Throughout the past decade, Egypt has gone through an intense period of economic transformation. The decrease of the role of the state in the national economy - through privatization, deregulation in key-sectors and a phasing out of many economic entitlements -has brought about a significantly changed social and economic landscape.

This process of transformation has had varying effects on different social groups in the population. While some have greatly benefited from increased economic growth and low inflation, others have lagged behind. The poverty of these groups goes beyond a straightforward income-expenditure deficiency however. These groups suffer a capability failure: their lack of access to and control over physical, financial, human and social capital bars them from profiting from the opportunities that an increasingly dynamic economy provides.

A large percentage of those defined as poor are either landless rural dwellers, or low skilled, self-employed urban dwellers. Producers of traditional crafts – predominantly women earning an average of $100-200 per year - can be found among these groups.

Producers of traditional crafts have found themselves increasingly marginalized. Social, economical and cultural changes have diminished the traditional demand for their products, while they lack the capital, knowledge and skills to access new markets.

New markets for their products exist, but are far removed from the producers, both in physical and in marketing terms. Traditional Egyptian Crafts have been successfully marketed in tourist markets, export markets and upper segments of local urban markets but producers do not have the knowledge or skills to successfully access these markets for their products. Private traders can link the producers to the markets but their concern is to maximize their own profits at the expenses of the already marginalized producers.

Project RATIONALE

In general, handicraft activities have a big potential to stimulate the growth of the poorest countries, addressing the needs of the most vulnerable and marginalized strata of the population.

• In the handicraft sector, limited investments can create employment, hence generating income for thousands of people that do not have access to market or alternative income sources.

• Most handicraft activities can be carried out at the household level, or at the community level. Furthermore, they are often linked to the agricultural production cycles. For this reason, they can significantly contribute to strengthen rural economies, indirectly contributing to contain movements towards urban centers.

• Handicraft activities indirectly stimulate the production of locally available raw materials needed for craft products.

• From a gender viewpoint, handicraft activities can contribute to trigger processes of socio-economic awareness and independence for women.

• By providing an additional income source for the family, handicraft activities facilitate increased access to better education and healthcare services for children, hence improving their quality of life

• Traditional handicraft activities contribute to the preservation of the cultural heritage and identity of producers.

• Handicraft activities are often environment-friendly as they are characterized by very low energy consumption and often use scrap materials of other productions.

In order to achieve the steady income of the producers that can lead the way towards alleviating poverty, the project must address the following problems:

i) the products quality, the producers’ technical skills, management and production capacity. The lack of quality assurance and standardization results, often, in products that are unfit for sale, causing in turn a drain on the time of the producers in terms of income lost.

ii) the working conditions of producers. Many of the workers, due to poverty and a lack of demand for their products, work in informal work places which are not subject to health laws and standards. It is difficult for workers to produce quality goods or improve their quality of life when the quality of their work site is substandard.

iii)  the lack of workers’ participation in the Producers’ Group and other representative organizations that are to help them.

iv) a ‘market-oriented’ production. After products are distributed in the market, it is of key importance for producers to have access to all relevant information on customers’ reactions, sales results, general markets trends etc in order to develop a market oriented production. It is essential that right competences and information are available and the appropriate production organization is predisposed within the producers’ communities.

v) Fair Trade marketing organization. A project to support Egyptian handicraft shall first and foremost facilitate the connection of the most marginalized producers to a functioning marketing organization abiding to some form of ethical principles that guarantee the absence of any form of economic, psychological and physical abuse.

Therefore the project aims also at reinforcing the sustainability of the Egypt Craft Center (ECC) and not only as a trade and marketing organization of products, but also as an organization providing to producers a wide range of services (input for products' development, technical assistance, continuous training, pre-financing, promotion, etc.)

BENEFICIARIES

Producers

Currently more than 1,500 craft producers from different regions have access to markets for their products trough ECC. MLP/ Phase I has provided training services to more than 200 producers in the field of product development and quality improvement. A large majority of the producers are women (90%) and they live predominantly in rural areas.

Marketing Link Program- Debt Swap aims at expanding the marketing services to more than 2,000 craft producers and provides them with training in the field of production management and production process, working conditions, fair trade, pricing, record keeping and participation in decision making processes.

NGOs and Producers Groups

The project works with the general management and production supervisors of the NGOs and Producers Groups selected as beneficiaries to improve their general management, their services to crafts producers with regards to production management, and the Fair Trade concept of their work in the field of craft production. MLP- Debt Swap supports these organizations with training, technical assistance, improved networking and production & communication equipment.

The project will expand its services to a minimum of 5 producer groups among with 2 Productive Families.

Vulnerable groups (women, young people, and unemployed)

The project supports vulnerable groups, identified in different areas of the Country, to acquire the technical and organizational capabilities asked to produce craft or agro-processed products for the markets. A different approach, as compared to the other Producers Groups, has to be followed: it is needed a specific process to build up competencies, both technically and organizational, and not only to improve them. The project aims to support the organization of  3 new groups.

Activities and METHODOLOGY

To ensure an optimal implementation of the project objectives, results and activities, a range of methodologies will be applied to the relevant activities:

1. IMPROVEMENT OF production management and Production process of PRODUCERS groups and ECC CAPACITY BUILDING

• Organization Diagnostic

• Training Sessions

• Technical Assistance and On-the-Job Training

2. AWARENESS RAISING, NETWORKING, PROMOTION, ADVOCACY

• Advocacy for the work of the producer groups

• Awareness raising and promotion of handicraft

3. FINANCIAL ASSISTANCE AND EQUIPMENT SUPPLY

• Equipment and communication facilities

• Pre-financing Fund

PROJECT HISTORICAL BACKGROUND

MLP Phase I has succeeded in creating access to the market for marginalized groups of craft producers. The program has developed a stable and growing market for their products. It has developed a stable relationship with craft producers and the NGOs and groups with which they are affiliated, providing an effective channel for efforts to build their capacity and self reliance. Furthermore, through its established contacts with recognized international Fair Trade networks, MLP has introduced the concept of Fair Trade in Egypt, and has started to integrate Fair Trade concepts in all levels of operation of the Egypt Craft Centre.

The achievements of MLP in the first phase brings a number of crucial opportunities:

Market opportunities in international Fair Trade markets and Egyptian tourist markets bring a great potential for growth of the number of producers that can access these markets and the stable income they can generate from their skills.

Promotion of Fair Trade concepts in Egypt provides opportunities for producers to benefit from business relations that do not only provide them with a fair share of the market price, but also with access to technical assistance and training that enhance their potential in the market.

The development of ECC into a widely recognized Non-Profit Fair-Trade organization that is financially self sustainable, provides craft producers with a stable and effective access to markets that is independent of donor support and that provides them with a fair price, as well as effective training and technical assistance.

The opportunities stemming from the successful completion of the first project clearly indicated that the momentum should have not been lost.  Therefore, COSPE designed the project Marketing Link Programme f   for funding under the Italian - Egyptian Debt for Development Swap Programme and submitted another broader proposal to the Italian Ministry of Foreign Affairs, which has been funded and started on December 2003.

Development Objective

The project aims at contributing alleviate poverty among vulnerable groups (rural residents, women, youth, unemployed) by supporting the development of income generating activities mainly in the craft sector. The project is addressing vulnerable people and different social groups with the overall purpose to alleviate poverty among craft producers by facilitating their access to Fair Trade services and markets.

Specific objectives of the project are:

1.To improve the quality of life of participating producers by providing tools and opportunities to improve their income, production skills and enhance their role within their communities

2.To improve the institutional capacity of producer organizations to service craft producers through effective production management and provision of opportunities for enhanced participation

3.To enable ECC to provide effective trade and marketing services to craft producers on a Fair Trade and financially sustainable basis

4.To promote Fair Trade concepts in Egypt

OVERVIEW OF PROJECT’s TARGETED SECTOR

Throughout the past decade, Egypt has gone through an intense period of economic transformation. The decrease of the role of the state in the national economy - through privatization, deregulation in key-sectors and a phasing out of many economic entitlements -has brought about a significantly changed social and economic landscape.

This process of transformation has had varying effects on different social groups in the population. While some have greatly benefited from increased economic growth and low inflation, others have lagged behind. Canceled or decreased food subsidies and other entitlements, as well as increased unemployment and underemployment due to privatization, have particularly hit the poorer strata of the population.  As a consequence, the number of people that live of an income below the poverty line has risen in the past decade.

The poverty of these groups goes beyond a straightforward income-expenditure deficiency however. It is not simply a matter of temporary economic factors that push their income below a certain line. These groups suffer a capability failure. Their lack of access to and control over physical, financial, human and social capital bars them from profiting from the opportunities that an increasingly dynamic economy provides.

Producers of traditional crafts have found themselves increasingly marginalized. Social, economical and cultural changes have diminished the traditional demand for their products, while they are lacking the capital, knowledge and skills to access new markets. New markets for their products exist, but are far removed from the producers, both in physical and in marketing terms. Traditional Egyptian Crafts have been successfully marketed in tourist markets, export markets and upper segments of local urban markets. Producers do not have the knowledge or skills to successfully access these markets for their products. While private traders can link the producers to the markets their concern is to maximize their own profits at the expense of the already marginalized producers.

Project RATIONALE

In order to build the components for the steady income that can lead the way towards alleviating poverty the project must grapple with the challenges of quality, skill, and volume in the producers’ work. Despite successful growth in production and sales in the first phase of the program much more remains to be done. The previously small scale of the project has amounted to a limited number of producers and NGOs receiving the benefits of training packages thus making it difficult to achieve a consistent production of high quality goods.

Many of the workers, due to poverty and a lack of demand for their products, work in informal situations. Oftentimes, these informal work places are not subject to health laws and the people find themselves in much less than ideal work conditions. It is difficult for workers to produce quality goods or improve their quality of life when the quality of their work site is substandard. Along with this problem is the lack of workers’ participation in the NGOs and other representative organizations that are to help them.

In order to help alleviate the poverty of the poorest of the poor producers, the program must truly be brought to scale. Increased sales result in increased orders which in turn spring from the delivery of a targeted package of skills, quality control and business training.

Most handicraft activities can significantly contribute to strengthen rural economies, stimulating the production of locally available raw materials needed for craft products. From a gender viewpoint, handicraft activities can contribute to enhance socio-economic awareness and independence for women. By providing an additional income source for the family, handicraft facilitate increased access to better education and healthcare services for children. Traditional handicraft activities contribute to the preservation of the cultural heritage and identity of producer as well as protecting the environment.

The project aims also at reinforcing the sustainability of the Egypt Craft Center (ECC) and not only as a trade and marketing organization of products, but also as an organization providing to producers a wide range of services (input for products' development, technical assistance, continuous training, pre-financing, promotion, etc.) under the principles and procedures of a Fair Trade organization.

BENEFICIARIES

Producers

Currently, the Marketing Link Program (MLP) is servicing a number of 2000 craft producers with access to markets for their products. A large majority of the producers are women (90%). Producers live predominantly in rural areas.

The present project  aims to expand the marketing services to more than 2,500 craft producers, while improved effectiveness of training formats will enable the project to reach all producers with training in the field of production quality, working conditions and participation in decision making processes.

NGOs and Producer Groups

Currently, MLP is working with the general management and production supervisors of 12 NGOs and Producer Groups to improve their general management, their services to crafts producers with regards to production management, and the Fair Trade concept of their work in the field of craft production. MLP supports these organizations with training, technical assistance, improved networking and production & communication equipment.

ECC is presently marketing the handicraft products of  33 Producers Groups and the present project aims to expand the services it provides to NGOs and Producer Groups to reach a maximum of 40 producer groups.

Egypt Craft Centre

The project aims to work closely with the Egypt Craft Centre to enhance its management and operations. In order to further develop ECC into a financially self- sustainable Non-Profit Fair Trade organization that provides access to local, tourist and international markets for producers of traditional crafts. Upon the project completion, ECC is capable to provide Fair Trade marketing services for a minimum of 40 Producers organizations and provide TA and training services to 100 new producers and two new producer groups per Year.

Activities and METHODOLOGY

Main activities of the project will apply the relevant methodologies already adopted in the previous phases and focus the implementation to achieve the following results:

1. Producers organizations develop and organize a production management system able to ensure production diversification, products quality and deliveries punctuality

2. Producers and their organizations achieve awareness of FT concepts and practices and implement measures for internal management, price definition and working conditions

3. Producers’ organizations establish improved relations with key-actors of their own communities, and contribute to document and protect handicraft tradition and local cultural heritage

4. ECC adopts a legal status and a property structure coherent with Fair Trade criteria, ECC also involves in its activities new business partners  and establishes relations with FT international network

5. ECC adopts an effective financial  management system, reinforces existing markets and develops new market sectors (export and tourism sectors)

6. ECC includes, in its daily operations, services of training and technical assistance for producers and their organizations according to FT principles

7. Egyptian opinion leaders, at institutional and civil society organizations level acquire  information and interests with regard to FT concepts and principles;

8. International agents of FT and of traditional distribution are informed of characteristics of Egyptian handicraft production and of potential economic relations.

PROJECT HISTORICAL BACKGROUND

COSPE identified this project proposal in 2000, during a monitoring visit to its previous handicrafts project  focusing “Commercial and Institutional Support to Women and Men Craft Producers in Egypt” and through extensive contacts with the Italian Cooperation bi-lateral programs.

The former idea was to integrate a more practical and community-based approach to the existing “Poverty Alleviation Program” (PAP), initiated in 1998 and on-going, to focus one of the Community Development Association (CDA) involved in the broader program.  The PAP provides mainly economic support and social services to small business enterprises, vulnerable people, women and youth within 12 CDA in the Governorate of Giza, through services centers, SME support and consultancy on income-generating activities and a wide micro-credit program.

The CDA of Abu el Nomros was then  selected as  target of a project which aims at improving and fostering the opportunities for vocational and technical training within the local community, through the rehabilitation of a Vocational Training Center as a pilot-center for training activities and at the same time, as Socio-cultural Center to address the needs of women, youth, vulnerable people and to enhance the capacities of the CDA to respond to local development needs.

The vocational and socio-cultural center hosted a pre-school, part of a primary school and a sewing course addressing women and girls of the community,  but the CDA expresses the need of improving this offer designing new courses and providing for more training  opportunities to meet the market-driven demands. The structure of the training should focus on short practical courses with including innovative contents and skills according to new market demands.

Moreover, the center should become a development pool for new income-generating activities and foster its objective to act as a socio-cultural center promoting local development initiatives, as well as human resources valorization and participatory and integrated approach through a more active role of the CDA of Abu el Nomros, both actor and beneficiary of the present proposal.

The project raises also the need of building a network of local stakeholders involved in community development, vocational training and socio-cultural activities around the CDA to foster its capacity building.

Development Objective

The overall objective of promoting local development and improving the living conditions of the local population of Abu el Nomros will be addressed through enhancing vocational training initiatives and socio-cultural activities in the local community of Abu el Nomros, involving the CDA and the population into a tighter co-operation aiming at providing services to the small business actors and the most vulnerable people (unemployed women and youth).

OVERVIEW OF PROJECT’s TARGETED SECTOR

The project addresses the activities promoted by the CDA in the fields of vocational training and socio-cultural promotion, through improving the standards, introducing new technical skills, fostering a participatory approach to local development and involving women and youth in socio-cultural activities.

The project will focus 2 main sectors of intervention: the rehabilitation of a pilot vocational training center and the promotion of socio-cultural and educational activities aimed mainly at women and youth.

Moreover, the project will address the training of the CDA itself in capacity building, acquiring the proper skills to manage and implement local development policies.

Networking among relevant stakeholders will also be a focus for the proposed intervention.

Project RATIONALE

Problems identified in Abu el Nomros reflect the general  situation in the Governorate of Giza and in poor areas of the country, characterized by the coexistence of urban and rural economies and the need for local development policies aiming at reducing poverty levels and lowering emigration to larger cities.

Income levels are low, economic chances rare, development perspectives reduced, job opportunities especially for women and youth are  scarce.

Training opportunities need to match the increasing qualification needs aroused as a result of small and medium enterprises and services to the community due to the micro-credit scheme.

Moreover, local authorities and community development associations are still weak to cope with local development issues and need support in capacity and institutional building and participatory planning. Networking and co-ordination among local stakeholders and technical public bodies as well as private actors will also be an objective for the project.

BENEFICIARIES

Direct Beneficiaries:

The population of Abu el Nomros, namely people who have access to services provided by the local CDA.  Training activities do not focus a specific target but are implemented according to a previous needs assessment and addressed to different actors with different competencies and levels.

Socio-cultural activities and awareness are aimed at involving most unemployed women and youth but also young women and men who need refreshment courses and technical upgrading to meet increasing market needs. Estimated target for the socio-cultural and awareness activities is 10.000 people.

Young women and children are the privileged target of educational activities in the pre-school and the sewing training center. About 240 young children attend the local pre-school and primary school activity.

Total beneficiaries of the pilot training and socio-cultural center are estimated at 4500 people.

Members of the CDA of Abu el Nomros are also among direct beneficiaries since they benefit from training courses, income-generating activities and socio-cultural promotion through capacity building and participatory planning skills.

Local trainers will be upgraded through specific technical training and employed in the pilot center.  Local business men and traders will also benefit from the project being involved as trainers on specific subjects and/or as trainees in the pilot center. They will also benefit from technical input provided to SME and income-generating activities.

Indirect Beneficiaries:

Other CDA’s in the Governorate of Giza namely those participating in the PAP could benefit from the activities implemented in Abu el Nomros following sound practices and good planning. The project will have a positive impact on the local community and foster technical activities and socio-cultural programs at different levels.

Activities and METHODOLOGY

Activities will focus the three main sectors of intervention:

1. Pilot vocational and technical training center

2. Socio-cultural and educational center

3. Income-generating activities assistance

Participatory approach, needs assessment, training and on-the job practices will be applied throughout the project implementation to cope with local development capacity building and awareness on community development strategy.

PROJECT HISTORICAL BACKGROUND

Abu el Nomros is a small town located at about 20 km.  from Cairo composed by a small urban center and different rural villages around and characterized by a local urban and rural economy, low income and poor services for its population.

COSPE is implementing here a broader development project involving community development, vocational training, small income-generating enterprises and the promotion of socio-cultural activities.

One of the main issues to be addressed is to foster environmentally-sound activities and good practices related to environment and waste disposal. The local community should also develop environment awareness and be trained about environment issues so to be able to take care of its own environment.

In 2002, COSPE submitted a proposal to the European Union – Directorate General for Development under the Co-financing budget line in the form of Block Grant and obtained funds to run 12 small projects in different countries and contexts of the world, all aimed at fostering the link among environment, education and employment. Abu el Nomros was one of the selected location to implement this project due to the integration with a larger development program implemented in the same area and with the same beneficiaries.

Development Objective

Overall objective of this intervention is to promote a local development strategy concerning the relations among environment, education and employment, integrating environment aspects and good practices into development and income-generating activities.

Specific objectives aim at:

1. promoting a local community awareness on environmental issues related to the local context, namely among women and youth; 

2. promoting the development of income-generating activities related with environment valorization;

3. promoting a closer co-operation  among local development associations and the CDA of Abu el Nomros to foster a participatory approach aimed at sustainable economic development.

OVERVIEW OF PROJECT’s TARGETED SECTOR

 Abu el Nomros reflects the problems affecting poorest areas of Egypt. Low income rates, poor services, scarce job opportunities, lack of training offer, lack of qualified skills namely among women and youth.

Local development associations are still weak and lack participatory approach methodologies and  management and planning skills.

The local environment is degraded and environment issues are not properly addressed. Waste removal and disposal is not focused yet as a specific community development problem. Moreover, the local environment resources should be better utilized and valorized as source of income and economic growth.

The project focuses environment education, environment valorization as a source of income and environment-related income-generating activities to involve women and youth in providing new services to their community and getting an income out of these.

Project RATIONALE

The pilot training center will provide environment education and training courses aimed at environment protection and local resources management to enable the population of Abu el Nomros to take  full advantage of a better environment awareness.

Income-generating activities related to environment issues (waste removal and disposal, water use management,  recycling from scraps) will also be developed together with the CDA support and involvement.

This project will focus environment education and awareness for the whole population of Abu el Nomros, namely students and teachers, women and youth, the CDA members and local authorities, to enable the local community to better care for their environment and to take also advantage from newly implemented income-generating activities related to environment issues.

BENEFICIARIES

Direct beneficiaries:

• 15 CDA members trained to develop their local socio-economic development strategy;

• 500 students from the local schools trained on environment issues awareness;

• 45 women and youth trained on how to develop and implement  income-generating activities related to local environment resources improving and upgrading their traditional skills;

• 800 women trained on environment awareness, environment protection and hygienic rules.

Indirect beneficiaries:

• Families of the direct beneficiaries involved in training and income-generating activities;

• Members of local development associations and local institutions involved in the socio-economic activities developed.

Activities and METHODOLOGY

The following activities will be implemented in close connection with the broader development project in Abu el Nomros:

• Rehabilitation of the CDA center, basic equipment and rehabilitation of the green space around the center;

• Training for the members of the CDA to reinforce their capacities in terms of local development strategy and environment-related issues;

• Training and technical assistance on how to start a new income-generating activity related to environment protection and local resources valorization;

• Skills development in handicraft, sound-agricultural practices, water and waste management, recycling and scrap production;

• Awareness campaigns and education programs aimed at children, students, teachers and parents to promote a better respect and use of environment resources;

• Training courses for women on basic hygienic rules;

• Cultural initiatives to mobilize the community and the main stakeholders ion environment-related issues;

Networking among local development associations and institutions, resource-persons, women and youth trained within the project to promote exchanges on the broader theme of  “environment, education and employment” to foster a sustainable local development;