CCRI Research Assistant Amr Khafagy has recently had an article published on the ‘Alternative Policy Solutions’ website. Amr has previously worked in microfinance in Egypt and India, where he was involved in designing and evaluating rural finance projects, and worked with a range of stakeholders.

The commentary shows how the microfinance sector is becoming commercialised, after decades of being promoted as a development instrument. It explains why the sector is attracting private investors, and whether microfinance or financial inclusion are really helping microenterprises.

Because financing the modernisation of micro and small enterprises is not profitable for commercial financial institutions, we need alternative institutions for this purpose. The new proposed National Structural Reform Programme in Egypt should dedicate specialized departments for development finance within existing state-owned banks or create a new state-owned development bank, alongside encouraging the creation of members-owned cooperative banks.

The article is entitled ‘Beyond Microfinance: How Can Finance Support Social and Economic Development in Egypt?‘ and can be accessed here.