Targeting Youth: The Social Fund for Development

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The Social Fund for Development (SFD) was established in 1991 as a social safety net to mitigate the negative impacts of the economic reform and structural adjustment programs on low-income groups. Its aim if to contribute to combating unemployment, alleviating poverty, creating job opportunities, attaining sustainable development and supporting the national economy.

In recognition of the accumulated experience gained during many years of operation, SFD succeeded to reposition itself as the State's principal organ entrusted with sponsoring small/micro enterprises thus shifting from a mere social safety net into a permanent, full-fledged socio-economic development organization adopting new orientations to cope with the challenges and requirements of each new phase.

Thus, SFD works towards:

* Translating the State's development strategies into customized programs and viable action plans to improve living standards.

* Contributing to the implementation of components of the Presidential Platform,

* Creating new employment opportunities for start-up entrepreneurs and furnishing them with technical support and technological assistance,

* Activating Law 141/2004 on the Development of Small Enterprises and its Executive Regulations,

* Expanding the portfolio of small/micro loans through streamlining lending procedures and establishing one-stop-shop service complexes in all governorates,

* Developing appropriate mechanisms to protect vulnerable populations,

* Strengthening partnerships with governmental/non-governmental organizations, stakeholders, decision-makers and civil society institutions,

* Promoting fund-raising activities, and

* Empowering NGOs and civil society institutions to be able to participate more effectively in development activities.

Scope of Action

SFD accomplishes its tasks according to four major axes:

* Developing small enterprises,

* Stimulating micro enterprises,

* Attaining human/community development, and

* Deep-rooting entrepreneurial culture among the unemployed.

Target Groups

SFD targets:

* The unemployed,

* Women headed households and low-income groups,

* Vulnerable populations and groups mostly deprived of basic services, and

* Artisans and would-be entrepreneurs.

Composition

SFD composes of a board of directors presided over by Egypt's Prime Minister and an executive committee that monitors the implementation of the SFD general policies. Its General Secretariat encompasses the Managing Director and the technical/ administrative staff.

To ensure a prompt and decentralized action nationwide, SFD has established an integrated network of regional/satellite/ representation offices and service complexes in all governorates to deliver its financial/ non-financial services to needy populations in remote rural and urban communities.

Resources:

SFD resources consist of loans and grants contributed by national, regional and international organizations and governments besides amounts allocated in the State's General Budget. Loans finance productive/industrial/ commercial/service-rendering projects as well as other activities related to animal wealth production and micro enterprises, while grants are allocated to building necessary infrastructure and utilities in the ultra poor zones, stimulating human/community development, providing training and upgrading skill standards of beneficiaries.

Eligibility criteria

Applicants for SFD loans shall:

* Be literate and legally competent to establish and manage a small enterprise.

* Be resident in the governorate in which the enterprise is established and should not be engaged in any other activity.

* Demonstrate the military service status (whether exempted or completed).

SFD privileges

Beneficiaries enjoy:

* Managerial/technical/marketing support and training.

* Easy-term finance packages suitable for all kinds of enterprises, and

* Participation in SFD national and international exhibitions.

Mechanisms and Implementation Channels

SFD executes its programs/projects through sponsoring/intermediary/implementing agencies: ministries, governorates, banks, financial institutions, non-governmental and private voluntary organizations (NGOs/ PVOs), community development associations and civil society institutions. These agencies submit project proposals to SFD for appraisal according to a group of criteria meticulously set to observe the socio- economic dimension. SFD assists such agencies in developing project proposals that mostly serve the target groups. Agreements concluded by SFD and such agencies set forth implementation schedules, finance terms and conditions, as well as technical assistance requirements and contributions of the agency concerned.

SFD gives precedence to enterprises that create permanent jobs, stimulate human/ community development and stimulate grassroots participation. SFD implements activities on human/community/institutional development, population, infrastructure and public works, capacity building and women empowerment.

Targeting Principles

Targeting operations are conducted in compliance with principles of equity, efficiency and cost-effectiveness provided for in the SFD Poverty Targeting Map. Targeting programs are designed in a manner to ensure that services and benefits accurately reach the needy groups. These programs are developed in harmony with many indicators and benchmarks with due regard the socio-economic dimensions alongside the geographical location.

Since its inception and up to end 2007, SFD injected over L.E. 11 billion into the national economy creating a total of more than 2 million employment opportunities. It directed around L.E. 7.9 billion to about 818,000 small/micro enterprises that generated 1.7 million job opportunities. Moreover, SFD allocated more than L.E. 3 billion for human/community development enterprises creating up to 550,000 job opportunities.

A future perspective

SFD is committed to pursue its mission as a facilitator and initiator of poverty-alleviation and job-creation strategies, yet with more transparency and momentum. In association with partners in development, SFD is expanding its dissemination of entrepreneurial culture among the unemployed to help them carve out a niche in the labor market and become successful businessmen. Priority is given to encouraging micro finance alongside granting more credit facilities and simplifying loan guarantees. SFD is also breaking new ground by introducing mobile service units to sensitize the youth to private business concepts. Sponsoring small enterprises through franchising also marks an important milestone in SFD accomplishments where liaisons between beneficiaries and giant companies are fostered and exposure world markets is promoted. Through its core entities, groups and network of regional/representation offices, SFD is deeply involved in extending needed infrastructure in impoverished villages while launching a multitude of tailored community and environmental enterprises targeting wider sections of beneficiaries to improve livelihoods. It implements an array of ambitious programs and forward-looking strategies aimed at stimulating small/micro enterprises and investing in the human potential.

Strongly supported by the Egyptian government, SFD is ever more poised for cooperation with the private sector and all stakeholders in its quest to achieve the common goal: improving the quality of life for Egyptian citizens.

Source: SFD Media Department