MicroStart Egypt Programme: Midterm Technical Review

This paper reviews the operations of MicroStart in the two years since its inception, in Egypt. It also proposes recommendations for future progress.

The review finds that the three microfinance institutions (MFIs) that participated in the project:

• Are well grounded in basic practices of microfinance, but need to be strengthened in the application of best practices;
• Face growth constraints owing to complicated lending practices and lack of capital;
• Possess good accounting capabilities and strong human resource capacities;
• Have taken the help of the local technical service provider (LTSP) in acquiring and installing a good loan tracking program and in developing business plans;
• Have built their institutional capacity in several areas; they have transformed from charity-oriented to business-oriented organizations;
• Have moved towards financial self-sufficiency owing to their strong resource and financial management and good repayment rates.

The author states that there is a need for:

• Technically focusing on product improvement;
• Women-focused and strategic targeting;
• Integrating women into management;
• Studying other lending methodologies and delivery systems;
• Developing the capital market;
• Strengthening operations to manage larger portfolios, developing human resources with particular attention to middle management and building infrastructure (branch offices);
• Standardizing products and streamlining approval and delivery mechanisms;
• Developing products to meet borrower needs and wants;
• Securing ongoing technical assistance and getting linked to the formal sector;
• Planning for operations in an increasingly competitive environment.