Egypt funds SMEs projects worth EGP5.3 bln in 2023

The Egyptian Micro, Small, and Medium Enterprises Development Agency (MSMEDA) allocated around 5.3 billion pounds to fund projects for nearly 154,000 clients in 2023, according to MSMEDA’s CEO, Basil Rahmi’s, statement reported by the Egyptian Cabinet on Sunday.

The Egyptian Insurance Federation organised the event, titled “Microinsurance as a Vehicle for Economic Development,” which saw a significant turnout of government and insurance sector officials. 

Rahmi, on the sidelines of the Third Microinsurance Conference in Luxor, held from February 3 to 5, emphasised the government’s commitment to implementing a nationwide strategy for the growth of the medium, small, and micro-enterprise sectors. 

He highlighted its crucial role in economic development by reducing imports, promoting local industries, and generating quality, sustainable jobs, particularly for the country’s youth and women. 

Rahmi also highlighted that a key aspect of the agency’s strategy is to broaden access to microfinance for all interested citizens, particularly youth and women. 

This approach aids in setting up diverse micro-enterprises, leading to more job opportunities, enhanced income, and improved living standards, especially in regions with high unemployment and service needs. 

The Egyptian government enacted Enterprise Development Law No. 152 of 2020, offering numerous incentives and facilities to citizens. 

These provisions encourage the creation and development of small and micro projects, simplify tax incentives, streamline the issuance of licences, provide non-financial services, and facilitate financing mechanisms, fostering an appealing investment climate. 

Rahmi noted that the conference and its partners provide a valuable platform for sharing experiences and exploring collaborative strategies to enhance the impact of microfinance and micro-insurance services, thereby advancing Egypt’s sustainable economic development goals.