Ghada Walli, Secretary General of the Social Fund for Development (SFD), said she rejects the approach of having one entity to finance the SMEs which creates monopoly. “There must be multiple channels of financing the SMEs whether those channels were from the government or from private entities.” Walli told Amwal Al Ghad during the two-day Arab Banking Conference which has launched on Wednesday under the slogan of “small and medium enterprises: The Arab economic strategic choice”.
“Through these channels, we can witness competitions among the rival companies to attract their clients through providing them with financing offers.”
Additionally, Walli added that the idea of creating a ministry for the SMEs is still new and not widespread in my countries except for Mexico which has successively implemented the idea.
“It is pivotal to form specialized units for each ministry in order to support the SMEs.”
Moreover, Walli stressed the importance of providing facilities so as to encourage the small and medium enterprises to become more formal in a way that the government can easily collect the taxes and the owners of those enterprises would then benefit from the state’s services.