Tarek Amer: Developing SMEs Is A National Security Matter

Tarek Amer, chairman of Federation of Egyptian Banks, said small and medium enterprises (SMEs) are a national security matter because of their major role in contributing in national income, increasing gross domestic product (GDP), creating job opportunities and supporting industrial integration as these enterprises depend on local raw materials and half-manufactured industries.

Accordingly, Amer, chairman of the National Bank of Egypt, called on concerned bodies to support SMEs and remove all obstacles facing these enterprises as this sector has the potential to increase exports, stabilize political and social situations, enhance living standards and improve creative capabilities. Developing SMEs, Amer added, could only be reached through continuous cooperation among all concerned bodies.

On the sidelines of the Banker Conference, Amer added that SMEs account for 97% of the projects in Egypt and 80% of GDP and employs between 75% and 80% of the workforce.

According to World Bank’s estimates, SMEs account for 80% of projects in the world and contribute 35% to the hand industries. In addition, SMEs account for more than 90% of the projects and employs 60% of the workforce in advanced countries.

Amer criticized the government for focusing on large projects and neglecting SMEs although the latter highly contribute in creating job opportunities and supporting primary industries. Amer stressed on the importance of forming a coordinating council and a special agency responsible for SMEs with all financial authorities to remove all obstacles hindering the development of SMEs.

Amer noted that many countries were developed because of their focus on SMEs such as Malaysia in which these enterprises account for 99% of the institutions and employ 56% of the workforce.