From One Shop Stopping to One Stop Shopping - Small and Medium Enterprises Policy Development Project (SMEPol) A Partnership between Egypt and Canada Presentation to “Unleashing Entrepreneurship” workshop - April 2005

SMEs in Egypt 1,533, ,289 15,016 MicroSmallMedium 71% 19% 10% MicroSmallMedium Number Employment

What is SMEPol? To support the GoE in the development of policies, legislation, and regulations supporting MSME development. Purpose

Project Duration & Budget July 2004 April 2000 CIDA CAD $4.2m MoF CAD $1.3m IDRC CAD $0.5m Total CAD $6.0 m Extended to Dec. 2005

Project Results Framework Impact An improved policy environment resulting in reduced financial, & non- financial constraints & increased opportunities for MSME development Outcome I Policy Component Outcome II Capacity Building Component Outcome III Information System Component Outcome IV Networking Component

July Cabinet Shuffle Key economic ministers appointed Private sector development high priority Taxes cut by 50% Trust Customs reform QIZ signed Stock market has surged by 65% since then Policy Reform

Three key results: 1.Comprehensive vision adopted by the Government of Egypt, 2.Institutional framework established 3.Capacity to support the framework toward implementation “The results to date show that SMEPoL has had an impact on both the SME policy environment in Egypt and the SME policy development process within GoE” Results

CIDA IDRC Ministry of Finance Ministry of Investment Ministry of Foreign Trade & Industry Ministers’ Committee SME Sub Committee SME Unit SME Unit SME Unit Committees Direct Collaboration

1.Explicit focus on policy impact 2.Clear demand from government 3.A Minister who is a powerful champion 4.Embedding the project - inherent nimbleness 5.Partnership approach 6.Good relationships with key stakeholders Lessons Learned to support replicability

Evidence to support policy change Persistence, patience and perseverance (policy windows) Politically savvy project leadership Adequate funding, able project team, strong but flexible management and accountability structures Ensure strong linkage: research community – policy maker IDRC needs to take an unconventional approach to policy making 7.Evidence to support policy change 8. Ensure strong linkage: research community – policy maker 9. IDRC needs to take an unconventional approach to policy making 10. Persistence, patience and perseverance (policy windows) 11. Politically savvy project leadership 12. Adequate funding, able project team, strong but flexible management and accountability structures

Politicalization Freneticism Reprioritization Risks and Probability

Champion moves on Politics vs core values Weak Links (Research to Policy to Implementation) Shifting policy agenda Uncertainty is certain Balance of time and effort reacting and proacting Right question Probability - high Risks and Probability

“ Our interest lies in three areas: 1. In the public sphere, promoting the reform of laws, regulations and other barriers to growth, 2. … 3. …” U.N. Commission on the Private Sector and Development International Context

Egypt’s Entrepreneurs

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