The 2023 International Labour Organization (ILO) youth survey revealed that in Tunisia and Egypt, 80% of youth aged 15-29 worked informally while youth inactivity reaches 17% in Spain and 25% in Türkiye (Education at a Glance 2023 report). The same report claims that for multiple reasons young Mediterranean women are much more vulnerable and affected by dropping out of school and precarious employment. International reports indicate that inadequate learning and skills are key factors contributing to high NEET (youth Not in Employment, Education or Training) rates. Most education systems in the Middle East and North Africa (MENA) region do not focus on developing critical thinking and other skills necessary for the labour market and active civic life.
Streamlining Bank Account Opening for CSOs in Egypt: Towards a More Efficient and Uniform Process
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Project Budget
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EU Contribution
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Partners
Why the project matters
What it aims to achieve
- To co-design and develop a transnational training program for Mediterranean youth CSOs, blending digital and face-to- face methods, focusing on engagement as a key skill for employment and addressing regional challenges through social and artistic innovation.
- To support and engage young Mediterranean people to advocate for positive changes in Mediterranean societies through the implementation of concrete local and transnational creative actions and promoting original projects.
Expected change
- Trained 200 young people from Türkiye, France, Spain, Tunisia and Egypt, co-developing and applying innovative learning methods that fostered engagement and enhanced employment skills – digital, creative, and analytical – while addressing Mediterranean challenges.
- Strengthened young people’s civic actions.
- Fostered a transnational participatory dynamic.
What the project delivers
- Co-design of a pedagogical framework for the MedYCI training program developed by young Mediterranean participants and experts across five regions.
- Creation of a multidisciplinary team of 30 trainers.
- 5 MedYCI training sessions implemented across 5 countries, directly engaging over 200 youngsters.
- Establishment of five MedYCI studios which will be fully operational to enhance creative young participants skills in each region.
- Strategic recommendations for the Mediterranean Youth Council ensuring they are informed by diverse youth perspectives across the Mediterranean.
- 5 showcases of 50 innovative ideas for a better future of the Mediterranean.
- 25 simultaneous local creative engaged actions executed by youth, across the Mediterranean.
- •10 transnational webtv show (Medtalk) created by MedYCI trained Mediterranean youth.
EVENTS
EVENTS
MEDIA
Streamlining Bank Account Opening for CSOs in Egypt: Towards a More Efficient and Uniform Process
- The Mediterranean Youth Foundation for Development (MYF) advocates for the establishment of standardized guidelines for opening bank accounts for Civil Society Organizations (CSOs) in Egypt, highlighting their vital role in national social and economic development. The Minister of Social Solidarity reported that as of April 2023, 35,653 NGOs are registered under the 2019 NGO Law, amidst a landscape of 52,500 civic groups. However, these organizations face considerable challenges due to the absence of uniform bank procedures, resulting in delays and unnecessary bureaucratic hurdles. MYF’s dealings with banks like Commercial International Bank (CIB) and Arab African International Bank (AAIB) illustrate these issues, where the expected timeline for account setup extends from three days to over a month, exacerbated by irrelevant inquiries from bank staff.
- The lack of standardized guidelines not only causes delays but also threatens the sustainability of CSOs as it limits their access to funding, hampers project execution, and may deter donations. By law, CSOs must have operational bank accounts to manage funds transparently and meet legal obligations. However, bureaucratic inefficiencies hinder this process, compromising their operational capacity.
- Additionally, some banks are reticent to engage with CSOs due to heightened scrutiny under anti-money laundering (AML) and counter-terrorism financing (CTF) regulations, preferring to avoid the rigors of increased oversight. In contrast, private companies benefit from expedited account opening processes, creating an uneven playing field.
- To address these challenges, a collaborative initiative is proposed, involving the Ministry of Finance, government officials, CSO representatives, the Central Bank of Egypt, and key banking figures. The goal is to formulate standardized guidelines to streamline and expedite banking procedures for CSOs, thereby enhancing their operational efficiency and enabling them to fulfill their crucial developmental roles more effectively.
- he Mediterranean Youth Foundation for Development – MYF strongly urges the adoption of standardized and uniform guidelines for opening bank accounts for Civil Society Organizations (CSOs) in Egypt.Civil Society Organizations play a crucial role in the social and economic development of the country. On 5 April 2023, the Minister ofSocial Solidarity announced that 35,653 NGOs had registered under the 2019 NGO Law. Previously,the authorities stated that there were 52,500 civic groups in the country. However, they face significant challenges when trying to open bank accounts in Egypt, a process essential for their operations. Currently, there are no uniform guidelines shared by local banks, leading to excessive delaysand unnecessary procedures often driven by the lack of knowledge among bank staff regarding laws and regulations governing CSOs.
- Aprime example is the Mediterranean Youth Foundation for Development (MYF), which has encountered difficulties with Commercial International Bank (CIB) and Arab African International Bank (AAIB). Instead of completing the account opening process in the expected communicated three working days, the bank has extended it to over a month. Unrelated questions such as “How do you know each other within the organization?” or “Who funds you?” further causes unnecessary delays and wasting resources. While these are private institutions, these challenges can become even more complicated when dealing with governmental banks, further complicating the ability of CSOs to access critical banking services.
Bank Accounts: A mandatory tool for CSO operations
- The absence of standardized and uniform guidelines from banks not only creates unjustified delays, as seen in the case of the Mediterranean Youth Foundation for Development (MYF), but also threatens the sustainability of CSOs. These obstacles prevent access to the necessary resources for funding their initiatives, slow down project execution, and in some cases, may even discourage donations. Ultimately, this situation undermines the ability of CSOs to contribute to the country’s social and economic development, making it even more urgent to adopt uniform guidelines to facilitate the process of opening bank accounts.
- Civil Society Organizations (CSOs)are legally required to have an operational bank account, as stipulated by Law No. 149 of 2019 on Regulating the Exercise of Civil Work, and its executive bylaw in order to carry out their activities effectively. A bankaccount enables CSOs to manage funds transparently, receive donations, make payments, and comply with legal financial obligations. However, the fact that the process of opening bank accounts for
- CSOs is hindered by bureaucratic delays, unclear guidelines, anda lack of understanding, it compromises the ability of the organizations to function.
- In addition to regulatory requirements, another contributing factor to the delays faced by CSOs in opening bank accounts is that some banks may be hesitant to engage with CSOs due to the increased scrutiny this brings. Working with CSOs requires banks to adhere to stricter transparency standards, as mandated by anti-money laundering (AML) and counter-terrorism financing (CTF) regulations. This level of transparency can expose banks to more rigorous audits and external monitoring of their financial practices, which may not be advantageous for them. Consequently, some banks may avoid relationships with CSOs to limit external oversight and avoid the potential risks associated with being monitored closely. This reluctance on the part of banks can further delay the process of CSOs obtaining the necessary financial infrastructure to carry out their work effectively.
- On the other hand, private entities do not face such challenges. Their process of opening a bank account is significantly faster. Unlike CSOs, private companies benefit from streamlined procedures, fewer bureaucratic hurdles, and more standardized requirements, allowing them to complete the process with minimal delays. This discrepancy creates an uneven playing field, where private organizations enjoy greater ease of access to essential banking services.
- CSOs’ efforts are weakened as they must navigate an inefficient and burdensome system, while private entities benefit from streamlined processes. This disparity not only hampers the operational capacity of CSOs but also puts them at a disadvantage, limiting their ability to contribute effectively to the country’s social and economic development. Moreover, this situation reflects an underestimation of the crucial role that CSOs play. It is essential to provide greater support to Civil Society Organizations andfacilitate their operations, given the significant impact they have on the well-being ofthe nation as a whole.
Navigating Transparency: Why banks hesitate to engage with CSOs:
This initiative aims to streamline processes, reduce delays, and eliminate unnecessary bureaucratic hurdles that currently hinder the effective operation of CSOs across the country by calling for a collaborative effort involving the Egyptian Ministry of Finance, the Government representatives, CSO representatives, representatives of the Central Bank of Egypt, and key figures from Egyptian banks to establish shared guidelines that will simplify procedures and expedite the bank account-opening process.
These guidelines should aim to:
- Standardize and simplify the bank account opening procedures for CSOs.
- Ensure faster and more transparent responses.
- Eliminate unnecessary requests, focusing solely on legal and operational requirements.
- Provide specific training to bank staff to ensure they understand the needs and regulatory framework of CSOs.
- Set a clear and reasonable timeframe for processing applications, making sure the process stays efficient and moves along smoothly.
- Establish a complaint system where CSOs can easily raise concerns about issues, ensuring that their grievances are addressed promptly and fairly.
We emphasize the importance of adopting these regulatory practices as they will not only streamline processes and reduce unnecessary barriers, but also foster greater transparency and accountability. By facilitating the work of CSOs, their contributions to the country itself will be enhanced, as CSOs play a crucial role in driving progress and addressing key societal challenges. By enabling them to function more efficiently, Egypt will harness their full potential, leading to a stronger, more resilient, andinclusive path to development.
Toward Efficiency: A joint effort to simplify banking for CSOs
project includes:
Project Status
Completed
Countries covered
4
Start date
31-05-2025
End date
30-05-2027
Programme
Erasmus+
Key Action
Learning Mobility of Individuals
Action Type
Mobility of young people