improving job creation potential through skills and sme ... · •improving job creation potential...
TRANSCRIPT
Raffaele Boldracchi
May 7, 2012 - Cairo
•Improving job creation potential
through Skills and SME
Development
2
Topics for discussions
• IFC initiatives taken in the context of the
Deauville Partnership
• The Education for Employment Initiative
• Overview of SME in the MENA Region
• IFC AS in support of SME development:
Joint IFC-IBRD MSME Facility,
Business Edge & SME Tool kit
•Cross Cutting
•Themes:
Institutional Strengthening
Investment Climate
Corp Govern
Gender
Youth
Regional Integration
IFC Initiatives and Deauville Partnership (DP)
•e4e
•
Jointly with IsDB, IFC leading the initiative to
engage the private sector create new
opportunities for employment-
Jointly with IsDB, IFC is leading this initiative aimed at
engaging the private sector to create new opportunities
for employment-based education and enhance labor
market skills for youth/women
Joint AS program focusing on sector regulation for
private sector
It will address Module 6 under DP: Skills upgrading &
VT
• MSME Support
•MENA Fund
•AFFI
Equity fund to boost confidence & support capital markets
Scale up A2F and increase employment opportunities through
real and financial sector investments
MDBs/Regional partners may join It
It will address Module 1 under DP: Co-investment vehicles
Expand investment and Advisory engagement in infrastructure
PPPs, in partnership with World Bank, IsDB and open to IFIs
Components: (i) Public & private sector windows; (ii) AS; (iii)
Policy reform
It will address Module 5 under DP: Facilitation of PPP
projects
3
WBG Regional facilities open to IFIs; using instruments such
as fin. instruments and Advisory Services to scale up MSMEs.
On target countries.
Three complementary components: (i) SME Facility ; (ii)
SME TA Facility $30-32m, (iii) RSF on a portfolio basis.
It will address Module 3 under DP: SME Access to Finance
•Let’s concentrate on e4e and MSME support
Topics for discussions
• IFC initiatives in the context of the Deauville
Partnership
• The Education for Employment Initiative
• Overview of SME in the MENA Region
• IFC AS in support of SME development:
Joint IFC-IBRD MSME Facility,
SME Management solutions
4
•Education and Economic
Development Move Hand-in-hand
•Job
Creation
•Skill
Development
•Tackling Youth Unemployment
Requires Addressing Both Labor
Demand and Supply
•Graduates Not Equipped with
Proper Skills for Employment
•Work Readiness Skills of
Paramount Importance to Private
Sector Employers
•Job Creation and Skill Development Critical
for Economic Development
Need for e4e in the Arab Region
Labor Participation Rates Among Lowest in World
Arab region’s labor participation rates amongst lowest worldwide, currently 35% vs. global
average of 52%
Arab Youth Unemployment Highest In World
Arab region plagued with 25% youth unemployment, the highest in the world
e4e’s Strategy
•Improve operating environment
for the private sector & improve
public-private interactions
•Address operating
environment
• In-depth country
assessments
• Standards and quality
assurance
• Address regulatory
disincentives
• Match-making
•Increase supply of
work-ready students
• Investments in
university education,
Vocational Education &
Training (VET) and work-
readiness programs
• Investment vehicles to
bring in other investors
and diversify
mechanisms
•Change mindsets
• Signifying the
importance of TVET,
entrepreneurship, and
work-readiness training
• Raising awareness
• Forming partnerships
• Public-Private dialogue
•Entrepreneurship……Gender……..Inclusiveness
Topics for discussions
• IFC initiatives in the context of the Deauville
Partnership
• The Education for Employment Initiative
• Overview of SME in the MENA Region
• IFC AS in support of SME development:
Joint IFC-IBRD MSME Facility,
SME Management solutions
0
5
10
15
20
25
30
EAP ECA LAC SSA MENA MENA (youth)
MENA (female)
Exclusion from political and economic participation
17% of population living <$2/day
High clustering around poverty line– increases vulnerability of poor to shocks
50-75 million jobs needed over next decade to absorb new labor market entrants & reduce unemployment
Voice and accountability has worsened over last decade in almost all MENA countries
•Insufficient Voice and Accountability
•(Lower rank indicates worse score)
•Inadequate Employment Opportunities
•Access to Finance Lowest in the World • Source: World Bank Governance & Anti-Corruption
Indicators
0 10 20 30 40 50 60 70
India
Brazil
Turkey
Lebanon
Jordan
Egypt
Yemen
Tunisia
Syria •*MENA has the lowest
female labor force
participation rate in the
world
10
•O
vera
ll U
nem
plo
ym
ent
rate
(%)
•% of firms with a loan/line of credit from a financial
institution
•Source: World Bank
•Source: World Bank
In Egypt, there exists a significant opportunity for SMEs lending with
very low market penetration today, even by MENA standards
• Market size estimated by IFC at
approx.406,000 SMEs today* of
which only 15.3% have access
to credit
• By MENA benchmarks**,
particularly for non-GCC,
Egyptian SMEs are highly
underrepresented in the
Banking system today
• Recent WB Group survey***
identified 37% of SMEs in Egypt
consider access to finance and
cost of finance as obstacles to
growth.
•Source: Union of Arab Banks Survey 2010
•Sources:
• IFC- Mckinsey survey, 2010 *
•United Nations Development Program,2008**
• World bank Study, 2008***
Topics for discussions
• IFC initiatives in the context of the Deauville
Partnership
• The Education for Employment Initiative
• Overview of SME in the MENA Region
• IFC AS in support of SME development:
Joint IFC-WB MSME Facility,
SME Management solutions
Enhancing the performance and competitiveness of
SMEs
Joint IFC – WB MSME Facility
Basic elements required to support a strong SME sector
14
• Financial Capacity
•Physical & Financial
Infrastructure
•Supportive Enabling
Environment
• Working Capital, Medium-Term Debt, Equity
• Leasing, Franchising, Insurance, Cash-Flow Management
• Domestic & Cross-Border Trade and Supply-Chain Finance
• Institutional Capacity to deliver financial services
• Physical Infrastructure: Water, Power, Telecom, Transport
• Credit Bureaus, Registries, Payments systems
• Capital Markets/ Bond and debt markets
• Information, Advice and Incubation Services for SMEs
• Training & Capacity Building for SMEs
• Strong regulatory and policy environment
IFC’s Access to Finance Work in MENA
Clients Microfinance
Institutions Banks Government
(Financial Infrastructure)
Products
- Strategy/Product
Development - Risk Management
Housing Finance
Risk Management and
corporate governance
Energy Finance
Housing Finance
leasing
- SME Banking - Women In Business
Secured Lending
Credit Bureaus
Mobile Banking
Housing Finance
Leasing
Team and
Targets
6 specialists
FY 12 IDG: 560,000 new
credit accounts
85% joint IS AS projects
10 specialists
FY 12 IDG: 20,000 SME
80% joint IS AS projects
4 specialists
FY 12 IDG: 200,000 new
credit accounts
MSME access to finance
Focus
New New
New
• JOINT IFC-WB
• MENA SME Facility
• Regional
• Senior Risk
Tranche
• IFC + IFIs
• Junior Risk
Tranche
• First Loss - RSF
•In Country
•Engagements with
•Banks/FIs
•MSME-TAF
•Donor Funded
•30-32 million
USD
•Bank/FI “A”
•Bank/FI “B”
•Bank/FI “C”
•Bank/FI “D”
•Small &
Medium
Enterprises
•Country Allocations:
Distinct Pools
•Morocco
•Jordan
•Egypt
•Tunisia
•Lebanon
16
•Activities
•The Technical Assistance Fund has 3 components executed by WB
and IFC
• WB executed (Financial Sector Policy reform, FSAP, Central Banks capacity building)
• IFC executed (Financial Sector infrastructure)
Enabling Environment
• IFC executed (deep advisory services to banks and MFIs to develop their MSME portfolio)
Advisory Services to Banks and MFIs
• WB executed (direct SME support, incubator and BDS)
• IFC executed (IFC management training for SME, Business edge, SME toolkit)
Support and Training to MSMEs
Enhancing performance and competitiveness of
SMEs
SME Management Solutions
IFC’s SME Solutions : SME Toolkit and Business Edge
Business Edge
BE is an IFC owned training system
specifically designed to strengthen the
management skills of owners, managers and
staff of SMEs. BE offers clients applicable
management training solutions adapted to
the local business context, and delivered by
a network of local franchised providers and
certified trainers.
BE covers 42 management courses,
available in 10 languages and rolled out in
27 markets. BE franchisees have trained
more then 140,000 entrepreneurs and
managers since 2004
19
IFC’s SME Solutions : SME Toolkit and Business Edge
SME Toolkit
(www.smetoolkit.org)
The SME Toolkit leverages the latest
information and communication
technologies. It works with global
partners and a network of local
distributors, to provide SMEs with on-
line and mobile phone access to
business management information,
interactive tools, and training
resources.
The SME Toolkit is available in 32
markets in 18 languages, and attracts
5 million unique visitors per year
•Kenya •Saudi Arabia
20
Business Edge Workshops
• Leading your Team
• Delegating Effectively
• Motivating People
• Using Information for Decision Making
• Solving Problems
• Communicating effectively
• Managing Change
• Managing with Authority
• Becoming a More Effective Manager
• Managing Time
• Coaching
• Influencing
•Personal Productivity Skills
• Organizing for Successful Training & Development
• Recruiting for Key Management Positions
• Planning for HR
• Retaining Top Employees
• Establishing Compensation & Benefits
• Managing HR Communication
• Effective Job Design
•Human Resources
• Caring for the Customer
• Achieving Success in Marketing
• Assessing Marketing Opportunities
• Developing a Competition Strategy
• Positioning Yourself in the Market
• Establishing Your Marketing Mix Strategy
• Preparing Your Product Strategy
• Working out Your Pricing Strategy
• Creating your Distribution Strategy
• Developing an Integrated Marketing Communication Strategy
• Gaining Consumer Insights
• Marketing Services
•Marketing
• Understanding Quality
• Achieving Quality
• Auditing Quality
• Controlling Physical Resources
• Planning & Controlling Work
•Quality & Operations
• Controlling Costs
• Working with Budgets
• Using & Analyzing Financial Statements
• Developing a Business Plan for a New Venture
• Evaluating Investment Decisions
• Controlling Business Assets
•Finance & Accounting
Local languages & case studies
Topics addressing key management issues & gaps
Easily customizable
Flexible delivery (channel, duration)
Unique non-academic methodology transferring directly applicable
knowledge to the workplace
•In addition , 7 Tourism specific Modules have been developed
