Egypt launches Hafiz platform to offer private sector financial and technical support
Egypt’s Ministry of International Cooperation has launched on Sunday Hafiz Platform, designed to provide the private sector with the financial and technical support.
The platform is set to provide 75 financial and non-financial services from 20 development partners to the business community in implementation of the recommendations of the Egypt Economic Conference 2022.
The Hafiz Platform is within the framework of the state’s efforts to benefit from the best innovative financing alternatives available from international financial institutions and development partners to empower the private sector.
It connects development partners, agencies, the government, and the local business community, to enhance communication and linking between various private sector companies, whether large companies, small, medium and micro enterprises (SMEs), emerging firms, investment funds, or local financial institutions, in order to benefit from development financing, technical support and consultations.
The announcement about the new platform was made during a conference organised by the Ministry of International Cooperation at the New Administrative Capital. The conference has seen the participation of heads and representatives of multilateral and bilateral development partners, in light of the role assigned to the Ministry of International Cooperation, to coordinate work between development partners, and the government and private sectors,
The ministry is mandated to implement more effective development partnerships in a way that it achieves comprehensive and sustainable growth, and enhances the state’s vision aimed at increasing the private sector’s contribution to economic activity to 65 percent within three years.
The Hafiz platform works to enhance the competitiveness of companies of all types by improving their ability to access international markets, obtain innovative financing, and make the most of partnerships. This is by bridging the information gap, enabling the private sector to access a complete list of advisory services, technical support and financing provided by development partners.
Moreover, the platform reduces the information gap, overcomes the challenges of the language barrier that prevents companies from obtaining many services from development partners, and makes information available about the most appropriate financial and non-financial solutions available.
Minister of International Cooperation Rania al-Mashat explained that over the course of about a year, the ministry held many workshops and consultations with international development partners and the private sector, and presented a questionnaire to international development partners to inventory their financing and non-financing services to the private sector. The ministry also held consultative meetings with representatives of the private sector to identify their needs from development partners, and the most prominent challenges that prevent them from fully benefiting from international partnerships. It also conducted a comprehensive analysis of strategies with development partners to review the terms and axes of private sector empowerment and study reports and diagnostic studies, until this platform was reached to be the link between private sector companies in Egypt and development partners.
The multilateral and bilateral development partners have provided to the private sector worth with financing $10.3 billion in the form of development financing, contributions and investments, during the period from 2020 to 2023, in addition to advisory services and technical support, the minister noted.
Providing this platform will work to opening new channels between the private sector and development partners and enhancing benefiting from the comparative advantage of each development partner.
Al-Mashat stressed that the platform allows integration between the efforts of development partners to empower the private sector, in light of the pivotal role it plays in Egypt in promoting comprehensive and sustainable growth.
There are about 3.4 million private sector establishments in Egypt, whether large, small and medium companies, or emerging companies, as well as investment funds, and the Egyptian market, is joined by about 800,000 graduates every year, she added.
As such, it reinforces the importance of efforts made to increase the ability of the private sector to receive more workers through programs that stimulate comprehensive growth and support the efficiency of the labour market.
The Hafiz platform is based on successful experiences and models of cooperation between the private sector and development partners, benefits from financial and non-financial services, including direct investment, financing, grants, insurance, risk management and guarantees, commercial financing, technical assistance, and capacity building and advisory support. This is in addition to bids and opportunities to partner with or contract with companies.
