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Al-Ahram Weekly 6 - 12 July 2000 Issue No. 489 
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Published in Cairo by AL-AHRAM established in 1875 |
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Al-Ahram Weekly 6 - 12 July 2000 Issue No. 489
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| Published in Cairo by AL-AHRAM established in 1875 |
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Egypt Region Focus International Economy Opinion Culture Features Travel Living Sports Profile People Time Out Chronicles Cartoons Letters Women at work
By Tanya GoudsouzianIt was high noon in Aswan when Marie-Andrée Beauchemin, Canada's ambassador to Egypt, accompanied by Development Counsellor Darren Schemmer, walked into the Basma hotel conference room on 29 June. Does Beauchemin face any difficulties asserting herself at largely male-dominated occasions such as these? She headed straight for her seat at the centre of the table accommodating local dignitaries, including Governor of Aswan General Kamal Amer and Undersecretary at the Ministry of Social Affairs (MOSA) Mahmoud Shukri. All were present to witness the signing of an agreement between Canada and Egypt to transfer ownership of the Women's Initiative Fund Project (WIF) from MOSA to the Egyptian Association for Community Development (EACID), a project-created non-governmental organisation. Beauchemin's position (and attitude) exemplified the essence of WIF. By helping them start up small-scale businesses, or expand existing micro-enterprises, the project has given the women of Upper Egypt much-needed means of improving their quality of life -- even if it meant defying traditional norms in a poverty-stricken region.
The audience, made up mostly of journalists and MOSA and EACID staffers, was arranged in a U-shape, facing the dignitaries. A podium was placed on the side for the speakers. The manager of EACID, Mamdouh Fouad, who was serving as master of ceremonies, made the introductory remarks. After the governor welcomed the dignitaries who had flown in from Cairo for the day, Ahmed Hassan Abdel-Meguid, chairman of EACID, signed the agreement. Shukri and Beauchemin both gave speeches praising the aims of the project and the good work that had led up to this event.
"Our collaborative efforts through the Women's Initiative Fund Project have allowed us to make dramatic changes in the lives of over 2,000 poor women by helping them establish small-scale factories, industrial businesses, bakeries and other types of enterprise activities," said the ambassador.
A small table set up along the wall displayed some of the goods produced by Aswan's newest entrepreneurs. These ranged from baby clothes and touristy T-shirts to nails, plastic hoses and other hardware. One of the women has even started exporting her products, said EACID's Mamdouh Fouad.
Handcrafted apparel attract the numerous attendants to the conference
photo: Magdi Abdel-Sayed
Following the ceremonial cutting of the EACID cake, the buffet was opened and in sauntered a troupe of Nubian musicians and dancers in traditional costume. All present, including Beauchemin and Schemmer, joined in the festivities, dancing around the tables of the conference room.
With a vested interest in a potential Egyptian market, Canada has included Egypt on its foreign aid recipient list since 1976. Canadian exports and investments are still modest, but decision-makers believe they could expand if Egypt pursues its economic liberalisation policy. As such, the Canadian International Development Agency (CIDA) has helped initiate a number of projects to foster the development of the private sector. Under the premise that small businesses play an important role in easing chronic unemployment, CIDA launched the first phase of WIF in Qena governorate in 1990. By increasing women's access to business advisory services, technical training and credit -- loans for new economic activity and micro-credit for existing businesses -- the project aimed to promote the participation of low-income women in business activities and thereby improve their socio-economic conditions. The rationale was that rural women who are motivated to move their families out of poverty and who have shown themselves to be excellent managers of scarce resources would have everything to gain from the development of the private sector, says a CIDA report. Efforts proved successful and responsibility for Qena operations was transferred to MOSA in 1995.
The second phase of WIF was its extension to Aswan in October that same year, based on an agreement with MOSA and in collaboration with the Women's Affairs Department of Aswan governorate.
"The project targeted 'non-bankable' women," explained Iman Omran, senior development officer -- "the type who are so poor they would never qualify for bank loans for lack of collateral." Loans of some LE20,000 were granted on the basis of a business plan after participants, aided by the WIF team, performed feasibility and market studies. Within a short time, participants proved that they were good at business, defying stereotypes and age-old beliefs that women should be limited to -- and can only excel at -- traditional roles.
In fact, success stories abound. Nashwa Fathi, who lives in Qena, where the WIF project was first implemented, is a prime example. Fathi used her loan to purchase a sewing machine and began making school bags. Not only has she established an excellent credit rating, she has also acquired the business savvy to keep her enterprise afloat.
Providing access to credit is not sufficient, however; small and micro-enterprises such as Fathi's school-bag business need ongoing support to handle the risks and uncertainties faced by businesspeople everywhere. They must learn how to diversify, for instance, in order to fight off the slump of seasonal products, as well as how to deal with competition and the rigours of the market. The new Small and Medium Business Support Project (SMEDUP) team will tackle these issues by helping the government establish a delivery system of training and technical assistance. New entrepreneurs will first receive help in developing their business concept, building a group of partners, analysing the market and developing a plan. Once they have secured credit, further assistance will be given in developing the physical infrastructure and procuring equipment, and finally acquiring the skills needed to produce the final product.
The WIF programme was executed by the Ontario-based Foundation for International Training (FIT). FIT's objective was to help the target group build a strong management system that would enable them to carry on the project after the handover to EACID became effective. This included training, pedagogical development, communications support and policy dialogue.
Of course, there were serious challenges involved. First, the staffers who would be serving as consultants for the women participating needed to be trained by FIT. Explaining the concept of a loan to the participants was another difficulty. "There is also the situation where men use women as a front to acquire loans," said Omar Rahman, programme manager of FIT. But if the loan is used to build a family business, then the project has been successful, explained Rahman.
With the ownership of WIF passed on to EACID, it is understood that the project will soon be financially self-sustaining, based on revolving funds -- provided the women repay their loans. To date, in Qena and Aswan, more than 10,000 micro-credit loans have been provided to 3,000 or 4,000 people running existing micro-enterprises. A total of 217 new businesses have received start-up credit. In Aswan, these new firms, dealing with handicrafts, electrical appliances, groceries, clothing, baked goods and dairy products, among a plethora of other goods, have generated an estimated 311 jobs, most of which are held by women. There have been some minor repayment problems, but in all cases where women have established businesses and managed to consolidate and maintain control over them, their leadership roles within the family and society have been strengthened.
"The transfer of the management and ownership of the WIF project's credit fund to EACID is a bold and imaginative step," said the ambassador, "one that I know will succeed thanks to the support of our partners: the governorate, MOSA Cairo, MOSA Aswan and the Ministry of International Cooperation."
With the agreement to transfer ownership and management of the project's credit fund, EACID will be able to continue the WIF programme. This, according to the Canadians involved, marks an important step in the new and challenging area of building civil society.
