WASHINGTON--(BUSINESS WIRE)--Today, CHF International, a nonprofit international development organization, along with Craig Newmark, founder of craigslist.org, hosted a conversation on the role of socially-responsible lending — such as microfinance and Small and Medium Sized Enterprise (SME)-finance — in creating stability in the Middle East and North Africa. The event coincided with the release of an issue brief detailing the current situation and needs in more detail.
As noted in the issue brief:
The Middle East and North Africa region is experiencing the highest proportion of youth to adults in its history, with over 30 percent of its population between the ages of 15 and 29 – representing over 100 million youth. With such staggering numbers, the region needs to create 40 million jobs in the next decade just to keep pace with its youth bulge.
Yet unemployment among youth in the Middle East stands at 25 percent – the highest in any region. Even before the Arab Spring, the region was burdened with persistently high unemployment. The issue is particularly severe among the youth and women. In Egypt, for example, more than a quarter of the population is between 15 and 24 and at least 90% of the country’s unemployed are under the age of 30.
“While political instability tends to cause investor flight, now more than ever is the time to invest in this region’s entrepreneurs, and its youth,” noted Elissa McCarter, Vice President of Development Finance at CHF International and author of the issue brief. “The political and social transformation currently taking place offers tremendous opportunities to address the economic disparity and lack of opportunity faced by the majority of the population today. Supporting entrepreneurship and the growth of small businesses will accelerate equitable economic growth and job creation.”
CHF’s commitment to the region is demonstrated by its diverse programming in Egypt, Iraq, Jordan, Lebanon, West Bank and Gaza, and Yemen. Over the years, CHF has built a reputation as a neutral facilitator and an organization that achieves tangible, positive results. Its programs range from access to credit and community-led infrastructure in Iraq, to entrepreneurship opportunities for women and youth in the West Bank and Gaza.
“The best thing you can do for another person is help them get a job. Microfinance makes that happen – in very real and sustainable ways,” said Craig Newmark, longtime advocate on issues of social entrepreneurship and developing markets.
CHF International is the largest international network of microfinance lending in the Middle East, with more than 83 percent of its $157 million outstanding portfolio worldwide in four countries: Jordan; Lebanon; West Bank and Gaza; and Iraq, where it has nearly 55,000 clients and over 680 staff – all of whom are of Arab origin.
Since 2004, CHF has disbursed more than $620 million, provided loans to over 260,000 people, and helped create an estimated 520,000 jobs in the region. In Iraq alone, CHF's microfinance program serves more than 50 percent of the microfinance clientele and last month disbursed its 124,388th loan.
“One of the best ways to support the transformation in the Middle East and North Africa is to support small businesses, which generate 97 percent of all jobs in emerging markets,” said OPIC President and CEO Elizabeth Littlefield. “OPIC’s partnership with CHF International and USAID will provide the long-term credit that is essential for stability, growth and job creation. We are extremely pleased to be able to make such significant progress so quickly toward the realization of the Obama Administration’s pledge of support for the region.”
The brief, now available for download along with a photo from the event at http://chfinternational.org/anewmiddleeast , delves into the benefits of SME Lending in highly unstable economies and spotlights the successes CHF has had with SME lending in the Middle East.
ABOUT CHF INTERNATIONAL
CHF International (CHF) is an international development organization founded in 1952 that works in nearly 30 conflict-affected and developing countries around the world. CHF partners with communities to help them direct the improvement of their lives and livelihoods, and believes that the people best suited to decide what a community needs are the people of the community itself. CHF is a politically neutral, non-profit 501(c)(3) organization. For more information, visit www.chfinternational.org.
ABOUT OPIC
OPIC is the U.S. Government’s development finance institution. It mobilizes private capital to help solve critical world challenges and in doing so, advances U.S. foreign policy. Because OPIC works with the U.S. private sector, it helps U.S. businesses gain footholds in emerging markets catalyzing revenues, jobs and growth opportunities both at home and abroad. OPIC achieves its mission by providing investors with financing, guarantees, political risk insurance, and support for private equity investment funds.
Established as an agency of the U.S. Government in 1971, OPIC operates on a self-sustaining basis at no net cost to American taxpayers. OPIC services are available for new and expanding business enterprises in more than 150 countries worldwide. To date, OPIC projects have generated $74 billion in U.S. exports and supported more than 275,000 American jobs.