The Alexandria Business Association Small and Microenterprise Project, Egypt

This case study is designed to go behind the financial data (which show that ABA is indeed moving to financial sustainability) and place the project within the culture of the microfinance world as presently constituted. In so doing, it sounds a cautionary note about the relationship of sustainability to poverty impact.

Despite some hidden costs, ABA is becoming financially self-sustainable, and has a remarkable loan repayment rate of over 99 percent. It has avoided almost every pitfall of NGO-run microfinance projects, and its founders believe that ABA’s success can be replicated elsewhere. ABA is every tough-minded microfinance promoter's dream. It does not compromise on financial discipline, concentrating single-mindedly on high repayment and financial sustainability. Almost all of its best practices lie in the realm of the rules, incentives, and procedures which lead to these two goals. Some of these are original. All provide lessons for others to consider [author]