Unlock Business Growth: Funding for Egyptian SMEs & Startups

BUSINESS EGYPT - REQUEST FOR INFORMATION Introduction The purpose of this Request for Information (RFI) is to understand the interest of potential offerors to bid on Business Egypt if it is requested as a Cooperative Agreement. The goal of Business Egypt is to create a vibrant and high functioning network of competitive private institutions that accelerate economic development in Egypt and expand the quality and quantity of job opportunities, especially for youths and women. USAID/Egypt previously posted an RFI for Business Egypt on January 15, 2020 on beta.sam and January 29, 2020 on grants.gov (an update of the activity outline is shown in the Annex here). This updated RFI is motivated by the fact that since the last RFI was released, USAID has adopted new flexibilities for Cooperative Agreements and also unveiled its New Partnership Initiative (NPI) to strengthen the capacity of local partners.

Question for Offerors USAID/Egypt is possibly interested in seeking proposal requests for Business Egypt as a Cooperative Agreement. In particular, the Mission is interested in a “lead firm” type model in which an international firm would serve in an overall coordinating role and provide training and mentoring to three local firms or organizations (corresponding to the three Expected Results provided in the Annex) that would partner with the lead firm in order to strengthen the capacity of local partners. If USAID/Egypt were to pursue this type of arrangement, would your firm or organization be interested in bidding and forming partnerships? Annex - Planned Business Egypt Activity I - Goal The five-year goal of Business Egypt is to create a vibrant and high functioning network of competitive private institutions that accelerate economic development in Egypt and expand the quality and quantity of job opportunities, especially for youth and women.

By strengthening selected value chains through innovative techniques and practices, Business Egypt will support the establishment, growth, and competitiveness of productive and innovative startups as well as micro, small, and medium businesses with an emphasis on those that employ women and youth. Micro enterprises considered for this activity are those that have the potential for growth and the generation of sales revenues and employment opportunities. They are not the enterprises that provide livelihoods to poor people without intention for growth. II - Expected Results Result 1 - New MSMEs Assisted to Start Up and Accelerate Business Growth ~20% Result 1.1: Promising new startup companies strengthened through business incubators and accelerators Support the creation of new firms through incubators and accelerators.

Expand the reach and effectiveness of the Women’s Entrepreneurship Network and Tiye Angels. Expand the reach and effectiveness of the Youth Entrepreneurship Network. When commercially viable, help establish sector specific accelerators. Result 2 - Existing MSMEs Assisted to Adapt and Grow ~50% Result 2.1: Strengthen Business Development Centers’ ability to assist MSMEs Support selected BDS centers to become financially self-sustaining.

Support BDS centers to provide consultancies to promising MSMEs. Help the BDS centers to extend services to MSMEs in underserved areas. When commercially viable, help establish new sector specific BDS service centers. Result 2.2: Improved access to finance and investment Create partnerships with other complementary donor MSME financing programs..

Identify, review, recommend, and implement strategies to redress impediments to increasing access to investment, finance, and working capital for women and young entrepreneurs Identify and analyze impediments to capital for proven businesses facing financial constraints and develop and implement remedies to support value chain finance Result 2.3: Promising new or established small businesses strengthened by identifying and brokering market-driven anchor firm-MSME partner alliances. Identify and broker linkages between promising Egyptian MSMEs and anchor firms in buyer-driven value chains. Link sector specific accelerators and BDS centers with lead firms and other value chain stakeholders, including financial institutions. Result 3 - Business Enabling Environment Enhanced for MSME Growth ~ 30% Result 3.1: Simplified policies and regulations for businesses Simplify tax administration processes and procedures.

Support MSMEs and anchor firms to identify priority regulatory challenges for businesses and work to implement their reform. Create public-private partnerships to attract investment in targeted governorates. Develop and support the implementation of a policy reform agenda to improve the business environment for the value chains Result 3.2: Improve processes for streamlined registration, paying taxes, operational licensing, and regulatory compliance for new and growing small businesses Implement a streamlined business operation license approval process. Expand one-stop shops to provide national coverage by working to unite competing business registration models.