MEDA is a leader in microfinance and in many areas of international development. We create templates and others adapt them. Our reputation is built on our careful planning, innovative ideas and processes that work. Youth Microfinance in Egypt is just one more example.

PPIC-Work is our successful CIDA-sponsored program in Egypt, focusing on improving working conditions for young people who need to work. It’s an innovative product line where MFIs give loans to businesses contingent on the improvement of working conditions for young people. Businesses are given loans for technology and safety. And as a result, children’s working conditions improve and efficiency and profit increase.

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MEDA began to explore ways we could expand this program and share it with other Microfinance institutions. How could we leverage this program?

MEDA created a youth Microfinance Toolkit (see outline—PDF 267KB) and the opportunities are opening up. The toolkit equips MFIs with the skills needed to offer indirect financial services and social programming that will have a beneficial impact on young people in their communities who work. We give them loans for upgrading technology, assets, and safer equipment. It not only provides a safer work environment but technology usually increases efficiency and profit.

And the response? MFIs are seeking MEDA for training.

This past May alone, three established microfinance institutions came to a training session with a cumulative reach of almost 25,000 clients. The potential impact into the lives of both the working poor and young people who have to work is incredible. MFI managers are carefully considering this exciting opportunity.

Why are MFI managers so keen on MEDA’s program?

Managers motivated by the competitive market are looking to tap into new markets and are looking for the next best thing. If a product-line gets them more business they are happy to offer safety programs. On the surface, MFIs may not be interested in the social side of things but by providing an engaging program they begin to see the demand in the market.

And the demand for this product is growing. Our experience is showing this program creates a lot of customer loyalty. People are staying loyal because technology is having an impact on their business and on children who work for them. These loans are affecting families and workplace hazards are being mitigated.

Caroline Hossein is a MEDA senior microfinance consultant and manages the PPIC-Work program. She assembled the recent workshop and outlined how important it is to customize training for a specific community.

“The training needs to be adapted to a specific community.” she says. “When the workshop finishes we move on to the next step. We choose trainers from the class and meet to scrutinize the material, the format, and see how we can tweak it to reflect the culture of Egypt and the local market needs. Every market has its own needs and certain sections are more or less relevant.”

By specializing the workshops to fit specific communities, MEDA has potential to give the same resources to MFIs around the world. We are leveraging our programs in Egypt and adapting them to fit other areas as well.

MEDA has already taken this training to Mozambique. Caroline Hossein believes this is a great first step. “We have a microfinance facility there,” she says, “and we will use it as an incubator for training and best-practice for microfinance.”

There’s also been interest in expanding this program to the Middle East. As a result of the work thus far, we’ve gotten some critical acclaim – people realize social programming can be done! We’re showing that microfinance can impact communities. We can give business solutions and alleviate poverty and build more vibrant communities.

But the bottom line is that real people are getting help. Not only are the working poor getting a chance at a loan to help their small business, but young people who need to work are getting a chance for the future.