Financial leasing is a key strategy to enhance Egypt’s economic growth

The Egyptian government has to rejuvenate its financial and monetary policies in the face of the unstable economic situation, said head of the second annual leasing conference, Dina Abdel Fattah on Tuesday.

Under the auspice of Egypt’s Ministry of Communications, the second version of the leasing conference kicked off in Cairoon Tuesday under the rubric “new visions for activating the leasing tools”.

Abdel Fattah added that the small and medium-sized enterprises, which contribute 80 percent to the country’s GDP and employ from 65 to 75 percent of the Egyptian workforce, should be the government’s main focus and solve its huge financing challenges those enterprises face.

She further highlighted the great necessity of finding new financing tools to attract varied sections of investors. This will lead consequently to increasing growth rates from 5 to 6 percent by 2018 according to Minister of Planning, Ashraf El-Araby.

Here comes the importance of financial leasing as a successful non-banking financing solution that effectively helps SMEs to cover their needs of imported tools, software and equipment with the least amount of complications.

She also said that financial leasing conference is timely and appropriate under such bad conditions of financing and liquidity shortage that casts a shadow on Egypt’s economy following a $12 billion IMF loan to Egypt.

Financial leasing can make a significant difference to active economic forces within the Egyptian economy, Abdel Fattah stated, and be a key strategy to Egypt 2030 that is expected to help increase growth rates by 7 percent.