Closed: Call for Solutions – Egypt
CFYE aims to co-invest in innovative, private sector-led partnerships that aim to address the youth unemployment challenge by creating, matching, and improving jobs for youth. Please direct any queries to firstname.lastname@example.org. For more information on our first Call for Solutions in Egypt, please visit our Egypt Portfolio Page.
Deadline – 7 November (EOD, local time) 2022
Egypt’s population stands at 104.2 million, with a workforce constituting 28% of the total population. The unemployment rate for Egyptian youth (15-24 years of age) is approximately 24% (15.2% males and 57.8% females). The Egyptian economy has been recovering steadily since the January 25th revolution in 2011 but has suffered several shocks over the last few years starting with Covid-19 and up to the Russian-Ukrainian war. Under such circumstances, unemployment increased and especially among the youth.
Egypt has a youthful population, with a median age of 24.6 years. Youth of working age (15–34 years) accounted for an estimated 37.5% of the total population. However, Youth underemployment is a big concern for two main reasons. First, many youth – in particular women – do not look for formal employment or jobs, nor do they seek work abroad. In fact, many young women withdraw from the labor market when they get married or have children.
Second, the informal sector absorbs most of the jobs that youth work in, often below their qualification level. Hence, despite all the improvements that are taking place at the governmental and policy levels, the jobs market is not growing fast enough for the surge of new entrants to the labor market. Thus, there is an urgent need for new solutions for youth, particularly female, employment especially when the labor force in Egypt is both readily available and highly affordable by global standards.
Call for Solutions
This is CFYE’s second Call for Solutions in Egypt after the successful first Call for Solutions in 2020. CFYE will work through private sector firms in any sector that can create employment opportunities for youth and particularly women provided their business models are scalable and sustainable. Proposals for initiatives/projects should address specific challenges framed around creating scalable business solutions for more and better jobs for youth with a specific focus on women.
Key dates include:
- Launch of the Call: Egypt’s second Call for Solutions launched on 30 September 2022
- Webinars: We will host an information webinar on Wednesday, 5 October, from 6-8 pm (Egypt time). An announcement with registration details will be made available on this page and sent to those who fill in the Stay Informed form below. The webinar will be recorded and the recording will be published on this page soon after the webinar.
- Deadline: All Concept Notes are expected to be submitted by the end of 7 November 2022, and any submittals post this date will not be considered.
The following eligibility criteria will apply:
- Principles: Should adhere to CFYE’s guiding principles and priorities
- Exclusion Criteria: The project and organizations involved in delivering the project must pass the FMO exclusion criteria
- Private-Sector-Led: Only projects presented by legally registered private sector firms are eligible. Applicants can either be individual or consortiums. Consortiums must be led by private sector firms and can include organizations from the civil society and knowledge institutions as consortium partners, they should include two or more partners
- Business Maturity Stage: The lead applicant needs to be in their scale up or growth stage with at least 3 years of business operations. Activities presented in solutions need to be tested concepts. Applicants must have the financial capability to successfully operated their proposed projects.
- Leverage/Financial Capability: The minimum total project value should be €400,000, with a minimum contribution from CFYE of €200,000. This should be matched by a co-investment from the applicant that is at least equal to the grant requested from CFYE. In-kind contributions are allowed but should not exceed 30% of the leveraged resources.
- Consortium Composition: The Lead Applicant must be a private sector firm. The Lead Applicant is required to demonstrate that they can work with their consortium members, showing previous successful working collaborations is a plus. Solution implementation and co-financing are the responsibility of the Lead Applicant.
The following are not mandatory criteria but are considered as a plus for the applicant:
- Actively support women: Women-led businesses are actively encouraged to apply for CFYE.
- Presence outside the Greater Cairo area: Applicants with nationwide presence and operations (outside the Greater Cairo area) are actively encouraged to apply.
- Businesses with specific social objectives that serve their primary purpose or those who seek to maximize profits while maximizing benefits to their society are strongly encouraged to apply.
- Minimum Number of Youth-Focused Jobs: A minimum of 500 decent jobs (age range 18-35 years) with a mix of 2-3 job types (Create, Match, Improve). The recommended mix should be 50% Create job type, no more than 30% Improve job type, solutions focusing on 100% Match job type are ineligible.
- Priority Jobs for Women: Projects should aim to create jobs for youth aiming at a minimum of 50% of the target jobs for women
- Clear Pathways to Decent Employment: Minimum employment age is 18 years old (according to the Egyptian Labor Law). Average gross monthly income no less than the national minimum wage with a maximum of 48 hours/week. Proof of employment will be required for a definite number of months (to be communicated at later stages but a minimum of 4 months)
- Additionality: CFYE will only support solutions/projects/initiatives that would not be delivered within the same timelines, at the same scale, or delivering the same impact level with support from CFYE.
- Sustainability: As part of the design of the project/solution presented, the Applicant will be required to demonstrate how their initiative will become independent of external funding as part of their business case. It is of importance that projects have the necessary means to sustain their revenue, profitability and job outcomes beyond CFYE’s funding.
- Consortium Solutions: Projects presented by a Consortium must be coherent, complementing and integrated building on the business models of each of the consortium partners.
- Duration of Project: The duration of the project/initiative will be for 2 years.
Job Types & Outcomes
The following section explains the different job types that are expected to be generated through the projects submitted by applicants.
- Young people gain employment as a result of newly created decent work (job opportunity that did not exist before CFYE intervention) and income opportunities
- Young people gain employment who did not have work and income at all before CFYE intervention
Channels: Jobs created directly through CFYE Implementing Partners (IPs) as well as jobs created indirectly in the CFYE IPs value chain (up and down the value chain). Created jobs can be full time or part time.
Below are some examples of jobs that fall under the Create category:
- A new production line is built and young people are employed in newly added roles as a result of CFYE intervention
- Young people with no previous employment are hired as a result of CFYE intervention
- New self-employment ventures started by young people receiving entrepreneurship support (financial and non-financial)
Young people are hired/contracted into decent jobs through CFYE supported job placement/matching services following a CFYE skill development intervention.
Below are some examples of jobs that fall under the Match category:
- Young people trained to work in the hospitality industry who are hired into jobs at hotels or restaurants following the training
- Young people receiving jobs through a Fund-supported digital matching platform.
Young people experience direct improvements in the quality of the work/roles they already have (existing jobs/employees) in terms of income, benefits, working hours, work/life balance, health and safety, social protection and job security.
Below are some examples of jobs that fall under the Improve category:
- Increase in average monthly income or salary as a result of CFYE intervention
- Promotions resulting from a CFYE intervention
- Employees of supported IPs going from having no formal agreement with their employer to a written contract specifying terms of employment
- Change from having inadequate preventive measures to protect them from workplace hazards to having appropriate measures in place
- Establishing a nursery withing the workplace to support young female mother employees
Want to apply?
Download the application brochure below.
Want to know what to expect in our application process? Please have a look at the below documents.
The Challenge Fund for Youth Employment will apply a competitive process to select the projects that will receive a grant. That means that only those projects that present a clear and convincing pathway to employment, lead to significant and sustainable results in terms of decent employment for youth, with a focus on young women, and can demonstrate high leverage will be selected.