Osama Saleh: SMEs are the Backbone of Egyptian Economy

Osama Saleh, the Chairman of the Egyptian General Authority for Investment (GAFI), emphasized on the importance of the SMEs to support the Egyptian economic sector.

“SMEs are the optimal solution for the current time in Egypt and for the circumstances which the Arab world is going through.  SMEs can drive the economic growth, increase the national income and provide job opportunities.” Saleh told Amwal Al Ghad.

“ SMEs constitute the backbone of the Egyptian economy with almost 80% of the total enterprises in Egypt falling within this category.”

Saleh added that the SMEs are the optimal solution for poverty and unemployment in Egypt. He also tackled the major obstacles the SMEs face which are the inability to provide sufficient liquidity to set up any of those enterprises and to present any adequate guarantees which the financial institutions require. Therefore, the GAFI is aiming at easing the financial institutions’ loan procedures  and at providing technical and practical support through Bedaya Center for Entrepreneurship and SME Development.

“GAFI has established a special unit known as the Support Unit so as to present the technical support services and consulting to the SMEs.” Saleh said.

“GAFI had also launched the SME Credit Risk Initiative so as to link the financial institutions with the companies.”

Saleh noted that the GAFI has launched a number of initiatives so as to organize the investment sector and assist in making all its projects under an organized and official market able to deal with different authorities.

“GAFI has managed in cooperation with the Customs Authority and the Ministry of State for Environmental Affairs to validate 22 enterprises in the fields of industry, recycling and plastic manufacturing.”

In the meanwhile, Saleh refuted the allegations that the Arab investments in Egypt witnessed a fall. “Arab investors  are quietly confident about the Egyptian economy and its ability to boom again.”

Additionally, he said Saudi Arabia, Kuwait and the UAE invest most in Egypt.