Egypt’s Trade Ministry completes draft law to develop SMEs

Egypt’s Minister of Industry and Foreign Trade Tarek Qabil announced Friday that the Ministry completed forming a draft law to develop micro, small, and medium-sized enterprises (SMEs). The draft law was submitted to the House of Representatives for approval.

The draft law includes defining the tariffs and incentives for these types of enterprises, which represent 80 percent of Egyptian economic structure, in addition to means of financing them, Kabil added.

The draft law is the result of a second meeting with the Board of Directors of Small and Medium Enterprises (SMEs) Development Authority, Hisham Ragab, Advisor to the Minister for Legislative Affairs, and Dalia Salem, Head of the European Sector at the Ministry of Investment and International Cooperation (MIIC).

Kabil pointed out that this law will abolish the previous law, Law No. 141 of 2004, which applies to small and very small enterprises, as it will grant the Small- and Medium-sized Enterprises (SMEs) Development Authority, the power to supply funds directly or indirectly, and provide technical support to SMEs and startups.

The new national strategy to develop SMEs and startups was set upon the strategic goals for sustainable development in the Egyptian 2030 vision. It aims to create a competitive and balanced economy based on innovation, knowledge, justice and social integrity to reach sustainable development and improve the standard of living of the Egyptian citizens at last, according to Qabil.

He concluded that this strategy aims to increase contributions of innovative SMEs to economic growth, improve the surrounding environment of SMEs and encourage entrepreneurs. Source: Egypt today