The Small and Medium Enterprises (SME) unit was established in 2009 in collaboration with the Business Development Services Support Project (BDSSP/CIDA) in accordance with the Central Bank of Egypt to facilitate access to finance to SMEs. The role of the unit has been emphasized regarding the enhancement of SME Banking.
The Unit acts as a catalyst for the CBE and works on bridging the gap between bankers and SMEs to facilitate the process of access to finance and create an enabling Ecosystem for SMEs in Egypt.
The SME Unit also provides a variety of local and international training programs addressing various aspects in the SME’s field.
Financing Small and Medium Enterprises – SME’s
Course Hours: 16
In this course, participants get introduced to the role of small and medium enterprises in economic development and bank financing. They will also get trained on how to recognize, assess and mitigate the risks associated with lending such enterprises.
SME Banking for Bankers
Course Hours: 20
This course will explain the compelling importance for entering (or further developing) SME banking for banks in Egypt; teach the key techniques and success factors (at international best practices) which are needed to make profits in SME banking; and map out an implementation plan, including change management techniques, for moving forward on SME banking.
Product Development for SME Banking
Course Hours: 24
The course aims at explaining the product development process cycle, introduce participants to the different tools of building a competitive product range. The participants also, get a chance to illustrate the methods of analyzing SME product client matrix and explain the success factors in international best practices needed for effective SME banking.
Marketing and Delivery Channels for SME Banking
Course Hours: 24
This course has a fourfold purpose, which is to identify SME clients’ different needs. More emphasis will be given to determine how to market SME products and services. All participants will get acquainted with the procedures of delivering SME banking products. It identifies the success factors and international best practices needed for effective SME banking
Risk Management for SME Banking
Course Hours: 24
This course will enable bankers to understand the fundamental causes of risk in SME banking and the tools, processes and organization required to manage those risks. The course also exposes participants to the success factors and international best practice needed for effective SME banking risk management.
Strategic Planning for SME Banking
Course Hours: 24
In this course, participants will acquire the basic skills required for the preparation process of setting up a new or reforming an existing Small and Medium Enterprise Banking Business Line in their banks. This will be done through preparing a strategic plan and a business plan for this business line.
Role of Branch Managers in Enhancing SME Credit Portfolio – Tools and Methods
Course Hours: 24
This course is designed for Branch Managers in the banking sector. The course will enable Branch Managers to understand the nature and characteristics of the SME market in Egypt. Participants will also get acquainted with the impact of the banking sector in enhancing the SME market. Branch Managers will learn new tools and techniques to enhance the Small and Medium Enterprises credit portfolio.
Credit Officers Skills for Microfinance
Course Hours: 30
This course is designed to increase knowledge and improve the skills of microfinance officers to become acquainted with the basic principles for the success of microfinance. The course focuses on the importance of identifying the best practices for microfinance, the funding cycle of individual and portfolio management success. Moreover, the course highlights the role of credit officers in promoting and reducing credit risk; taking into consideration the importance of offering the various methods of funding and their objectives as well as assesses the client and the facility. The course introduces officers to all policies’ items and procedures and focuses on the use of modern methods of marketing and customer service.
Problem Solving and Decision Making for Microfinance
Course Hours: 12
This course is designed to increase the scientific and practical skills of microfinance staff in relation to problem-solving and decision making. This course contributes to furnishing participants with the characteristics of phenomena and identifies the causes of problems and the alternative solutions, which should be ranked based on priorities, in order to select the best and most appropriate solutions according to the nature of the problem and the time element. This helps in supporting and stimulating microfinance facilitation, since it is the central pivot in the system of sustainable development.
Delinquency Management for Microfinance
Course Hours: 12
This course is designed specifically to provide bankers; working in microfinance units, with the necessary helping tools to develop their skills, taking into account the importance of delinquency management and the pricing of interest. The course aims at securing a successful future for the bank and reduces the delinquency risks, which affect the pricing of interest. Hence, they affect the continuity of banks in providing financial services for micro-sector industries.
Effective Communication for Microfinance
Course Hours: 12
This course is designed for all staff working in retail banking departments or staff responsible for dealing with microfinance in banks and institutions. The course focuses on increasing scientific and practical skills of bankers about the foundations and the importance of effective communication, which helps participants to identify the elements and constraints of communication and the ways to avoid them. In addition to raising the efficiency of human cadres and developing the staff working in the microfinance units, for the important reason of developing the skills of communication and persuasion; provided the nature of different customers in order to move forward in the revitalization of banking services for microenterprises as the central pivot in the programs of economic and social development.
Management Functions for Microfinance Units
Course Hours: 8
This course is designed to increase the scientific and practical skills of branch managers in general and microfinance units’ staff; especially towards the optimum application of the functions of modern management. The course focuses on the importance of good planning and organizational effective structure; follow the principles of modern management, where supervision and guidance and follow-up are at the core. It focuses, also, on the importance of delegating authority to facilitate the management process. This course helps trainees in identifying the characteristics of a good manager and work as a team to achieve the objectives of the bank.
SME Banking Certificate
Certificate Hours: 124
The SME banking certificate will enable bankers to get acquainted with the whole package of effective applications to enhance success to finance for SME. Such program includes the essential parts of planning techniques, marketing philosophy and selecting the appropriate product development to fulfill the requirements of SME; with respect to international best practices for operations and risk management.
Credit and Risk Certificate for SME Bankers
Certificate Hours: 194
The Credit and Risk Certificate for SME Bankers is a unique certificate that includes both; the core credit knowledge and concepts needed by creditors with special focus on small & medium enterprises and their related risks. The Credit and Risk Certificate enables bankers to get acquainted with the learning process by empowering participants to think broadly, manage globally and compete strategically. This certificate focuses on all aspects of Banking Credit whether short-term, medium-term or long-term, it also enables them to understand lending techniques for effective credit decisions. It is a vital certificate for those who work in SME credit departments’ in banks and financial institutions, as it incorporates the concepts and knowledge creditors’ need to be familiar with the credit environment. Moreover, this certificate will allow the participants to understand the role of risk management within a modern financial institution and gain an overview of the main approaches used to measure credit, market and operational risks. Particular emphasis will be given to the various approaches proposed in the new Basel accord.
The SME unit provides assistance to banks in the field of SME Banking to help them set up SME banking within their operations with the necessary infrastructure and tools to facilitate the process of extending good quality lending to the SME sector.
Technical Advisory takes place through:
- Short Term Interventions (Down Scaling Model):
Through addressing specific problems within existing SME banking units’ operations, where the down scaling model is to change from only focusing on corporate to dealing with small enterprises.
- Long Term Interventions (Up scaling Model):
Through long term interventions which assist banks in establishing SME banking units, where the “up scaling “model is to graduate from micro lending to very small and small businesses lending.
EBI initiated a national SME census under the supervision of the Central Bank of Egypt. This is a collaborative project with the Central Agency for Public Mobilization and Statistics (CAPMAS), and the Centre of Surveys and Statistical Applications (CSSA) at the Faculty of Economics and Political Science, Cairo University. The data base was launched in February 2012 to be used by all banks in order to enhance the visibility and effectiveness of the SME sector.
The SME Web Portal has been developed to avail information on SME Banking, training programs, studies and researches as well as the data of the SME census to support banks’ planners and decision makers as well as all stakeholders of SME promising sector. You can access the portal through: http://sme.ebi.gov.eg
The SME unit delivers a diversified number of events that features international experts who share their global expertise on topics of particular relevance to the Egyptian agenda of the banking sector.
Meetings are conducted between banks’ SMEs unit heads, where international best practices and up-to-date issues related to SME Banking are presented. Also, among the objectives of the forum is to asses banks training needs in SME banking to set our training plan accordingly.
They are organized in a frequent manner with different promising sectors to construct supportive linkages between banks and the entire sectors dominated by SMEs.
The SME unit organizes study tours to advanced countries in SME banking. The study tours witnessed the African, European, Eastern Europe and South Asian experiences, and were specifically designed to enhance SME bankers’ capabilities based on the International best practices.
Studies: The SME Unit conducted various studies and applied researches that reflect international best practices, success stories and status of SMEs in Egypt.
- Access to Finance: Forms of Financing for SMEs in Egypt
- Study objectives: Investigate the difficulties that SMEs claim having in accessing finance from banks. The study was conducted in cooperation with the Egyptian German Private Sector Development Program (GTZ) and PlaNet Finance.
- The Future of SME Banking in Egypt
- Study objectives: Assess the progress in the development of SME banking in Egypt and the debate of its contribution to moving SME banking forward.
Applied Researches: The SME Unit publishes a series of publications by gathering information on the different successful experiences and best practices applied in various disciplines within the field of SMEs worldwide. These include:
- SMEs Experience in Malaysia
- Financing Small and Medium Enterprises “The Indian Experience”