2012 Country DM - Egypt: Scale-up Financing and Technical Support for Social Enterprises in the Agriculture and Handicrafts Sectors
Please note that the Winners Showcase event will take place on Monday June 17, 2013. More information about the day of the event, including how to attend the public session will be available soon.
For information about this competition in Arabic, please go to the World Bank Egypt page.
In response to Egypt’s needs and inspired by the new spirit instilled by the Egyptian revolution of January 2011, the World Bank Group is committing financial and technical resources towards job creation, poverty alleviation, and promoting an inclusive and, equitable economic development model in Egypt through its DM program.
The Egypt DM is a collaborative effort supported by several partners. While it is being managed and coordinated by the World Bank Group, including the World Bank, the World Bank Institute and the International Finance Corporation (IFC), several partners are planning to financially contribute to the Egypt DM program. Those include the AlKorra Foundation for Sustainable Development (Egypt), the Australian Government Overseas Aid Program (AusAID), Canadian International Development Agency (CIDA), the Department for International Development for the United Kingdom of Great Britain and Northern Ireland (DFID), the International Labour Organization (ILO), the Ministry of Foreign Affairs of Denmark, the Ministry of Foreign Affairs of Finland, the Sawiris Foundation for Social Development and the Swiss State Secretariat for Economic Affairs (SECO). Additional pro-bono technical support has been committed by other reputable organizations such as Ashoka, the Food and Agriculture Organization (FAO), the International Fund for Agricultural Development (IFAD), the Misr El Kheir Foundation, Nahdet El Mahrousa, the Social Contract Center (SCC) as well as corporate-sector partners including CISCO, Delta Aromatic, Innoventures, Microsoft and Sobh for Food Industries and Coldstore.
What is the Egypt DM?
The Egypt DM aims to contribute to job creation among young Egyptian men and women by providing financial and technical assistance to social enterprises and inclusive businesses within the agriculture supply chain and handicrafts. The Egypt DM is a national program that will start with a national competition. Based on a rigorous, competitive selection process during which applications go through rigorous, merit-based review by panels of development experts from inside and outside the World Bank who short-list a group of finalists from a pool of applications including a Face to Face DM event, the Egypt DM program will support at least 30 social enterprises, enabling them to create more jobs as they continue to grow over the next few years.
Competitions and Support Provided
Selected social enterprises will be eligible for funding, training, and mentoring services. Requests for DM funding must not be greater than the equivalent of US$25,000 per social enterprise. Finalists will be eligible for four capacity building workshops while DM winners will be able to receive on-going capacity building and mentoring services for the duration of the Egypt DM program. The competition is expected to support approximately 45 social enterprises.
See the frequently asked questions in Arabic (PDF, 500K)
1. What is the global Development Marketplace about?
Development Marketplace (DM) is a competitive grant program that identifies and funds innovative, early stage development projects with high potential for development impact that are scalable and/or replicable. The grant beneficiaries are social enterprises with projects that aim to create decent jobs and/or to deliver a range of social and public services to low-income groups. The DM program, housed in the World Bank and administered by the World Bank Institute, and funded by various partners has, since its inception in 1998, awarded more than US$60 million grants to more than 1,200 innovative projects identified through country, regional, and global DM competitions. Using DM funding as a launching pad, many projects have gone on to secure additional funding support from other donors, foundations, impact, and corporate social responsibility (CSR) investors. Each DM competition focuses on a specific theme or sector and draws applications from a range of social innovators and entrepreneurs. Applications go through rigorous, merit-based scrutiny by panels of development experts from inside and outside the World Bank who short-list a group of finalists from a pool of applications. The finalists are then typically brought together at a Face to Face Development Marketplace (DM) event in country locations to present their ideas to the public and participate in networking and knowledge sharing events. At the same time, a jury comprised of development professionals and other experts meets with the finalist teams and collectively decides which projects merit DM funding.
2. What definitions is the DM competition using for social enterprise and inclusive business?
The DM defines a social enterprise as a legal entity that aims to fulfill a social mission while following a business model that helps it achieve financial viability, sustainability, and scale. For inclusive businesses, the Egypt DM follows the IFC definition of models which “expand access to goods, services, and livelihood opportunities for those at the base of the global economic pyramid in commercially viable, scalable ways.”
3. Are there certain projects that the Egypt DM will not fund?
The Egypt DM will only fund projects that fully comply with the World Bank’s safeguard policies. More information on the World Bank’s safeguard policies can be found under the following link: http://go.worldbank.org/WTA1ODE7T0
4. Who will review the proposals?
A representative and diverse multi-stakeholder jury/advisory committee will be recruited to play key roles in providing strategic guidance, mobilizing and leveraging additional resources, as well as supporting the selection process. The Jury is to include key donors supporting the DM program, impact investors, agriculture and handicrafts sector experts, leading social entrepreneurship organizations, corporate sector representatives, as well as funding partners and government officials.
5. What if I am in the process of registering and do not yet have legal papers?
Only already registered organizations with a track-record of activities of at least two years are eligible to apply. Individuals and governmental entities are not eligible to apply. Official registration papers have to be submitted along with the proposal. Proof of a track record can be established provided that the organization has been registered for at least two years and can provide audited financial statements for at least one year.
6. Can we request the funding to purchase equipment or another asset?
Yes, as long as you are able to make a strong case for the direct link between that and job creation and expanding your impact.
7. How much of the budget can we use for salaries and hiring staff?
No more than 20% of the budget can be allocated to salaries.
8. When should I expect to hear back from the World Bank?
Due to the large number of applications expected, the World Bank will only be able to contact finalists to inform them of the details for the pre-selection workshops. Updates will be posted on this website and short-listed finalists will be contacted via email and/or mail.
9. If I am applying as an NGO or cooperative, am I required to go through the regular approval process to use international donor funding?
Yes, winners who will be selected to receive DM grants will have to follow the standard procedures of seeking approval from the relevant Egyptian government authority (including Ministry of Insurance and Social Affairs) when receiving funds from the World Bank (as for any international donor).
10. As a finalist what am I eligible for?
We expect to have 50 finalists, and the winning 30 or more will be selected from these 50. . All finalists will be eligible for 4 one-day training workshops to help them refine their proposals. The four workshops are to cover the following topics: 1) Communications, 2) Proposal writing, 3) Budgeting/financial planning, and 4) Social impact/Monitoring & Evaluation workshop.
11. As a DM winner what am I eligible for?
12. What measures for fairness and transparency is the World Bank employing in the selection process and throughout?
Highest standards are employed including qualified personnel on the DM management team; ensuring no conflict of interest among any of the jury and any of the reviewed proposals; ensuring a fair and clear process; and offering support through training workshops to finalists, to ensure a fair chance to all.
13. Do you have examples of Social Enterprises you would consider?
Although by no means a comprehensive list, here are some examples that were cited as good lucrative models. They help create jobs for the rural poor and do that by providing affordable goods and services to the poor. They also have a potentially positive impact on the environment. Examples of possible rural agriculture and handicraft that the Egypt DM would hope to support include:
- Food processing:
- Bee-hives honey production and packaging
- Processing and packaging of highly marketable vegetables
- Tomato paste production and sun-dried tomatoes
- Growing and packaging aromatic and medicinal herbs for local and export markets.
- Linkages with post-harvest stations and mobile packaging facilities
- Agricultural Waste Management:
- Biogas and anaerobic digesters for processing agriculture waste
- Composting rice straw waste into animal fodder
- Composting rural household wastes and livestock wastes into organic fertilizers
- Handicrafts from agricultural waste such as palm trees
- Rural women-produced handicrafts such as tapestry and weaving
14. Can we apply as two or three Social Enterprises together?
While each social enterprise should apply alone for a grant of no more than $25,000 each, a social enterprise could highlight in its application that there will be certain collaboration and synergies with other applying social enterprises. Each of those will be evaluated separately. Hence, the two or three collaborating entities have to be totally separate entities with separate legal registration, management, and leadership. The Egypt DM does encourage clustering to reach economies of scale and bargaining power for small groups.
15. What are the specific criteria that the jury committee will be using to evaluate my proposal?
Criteria include but are not limited to the following:
- Target group: poor and rural young men and women (ideally as both employees and targeted clients of goods and services produced)
- Proof of concept and good track record
- Number of jobs forecasted to be created
- Quality and sustainability of jobs to be created
- Social impact beyond job creation and poverty alleviation (example: social enterprises that also address an environmental challenge or provide an affordable alternative to “base of the economic pyramid” clients)
Social Entrepreneur (and team):
- Commitment of social entrepreneur(s) and team leading the social enterprise (the social entrepreneur him or herself is not required to be from among the rural poor)
- Skill-set and diversity of social entrepreneur and team
- Ethical fabric and integrity
- Additional points for female-led enterprises
- Cost-effectiveness (example: budget requested divided by number of jobs expected)
- Proven market demand justifying possible expansion of product or service provided by the social enterprise
- Rural based projects (with a higher weight on Upper Egypt)
- Registered and with a legal status as an Egyptian entity (as a company, NGO, foundation, or cooperative).
- Promotes diversity and collaboration between different groups (example: diversity of team members, mix of beneficiaries targeted)
- Investibility (institutional capacity established through financial ratios calculated as well as willingness/interest)
16. Are there certain regions or governorates?
As mentioned in the selection criteria, a higher weight will be placed on projects being implemented in Upper Egypt.
17. How is gender being included?
This is a key area of interest. One of the major themes of the Egypt DM is the handicrafts sector, which traditionally includes female artisans. Outreach to women will be strongly encouraged. In addition, as part of the selection process, additional weight is given to social enterprises that are either led by women and that target women.
18. If I have no access to a computer, can I still apply?
It is highly encouraged that you submit your proposal via email. However, proposals can be sent by mail. In this case, the preference is for typewritten proposals but handwritten proposals will also be accepted. These will have to be presented in legible and clear handwriting.
Egypt Development Marketplace
World Bank Office, World Trade Center, Corniche el Nile - 15th floor, Cairo