LE120 million contract to develop small and medium-scale enterprises
The Social Fund for Development (SFD) and the National Bank of Egypt (NBE) have concluded a LE120 million contract to develop small and medium-scale enterprises (SMEs).
The funds will cover the setting up of new businesses, and the expansion and upgrade of existing enterprises.
The NBE will provide credit facilities for new projects that create job opportunities, and will act as mediator, while the SFD will supply the funds.
One of the aims of the new deal is to assist graduates in making inroads into the free market economy and overcome financial, technical and managerial difficulties.
The four-phase project will take seven years to complete. Four fifths of the funding will be directed to enterprises in Beni Sueif, el-Menia, Assuit, Sohag, Qena, Luxor and Aswan and the remainder will be directed to the Governorates of Ismailia, Port Said and Suez.
Meanwhile, the Ministry of Foreign Trade recently held a seminar on enhancing SMEs competitiveness.
The government is eager to devote effort to modernising SME development policy with a view to boosting exports, Foreign Trade Minister Youssef Boutros Ghali said in a statement that was delivered on his behalf at the seminar.
"The government is keen to support the efforts to promote SMEs, sharpen their competitiveness, and open markets for their exports," Ghali said.
Head of SME development at the SFD, Yehia al-Agami told the gathering that the fund had an ambitious plan to support the competitiveness of the small and medium-scale industries.
"This plan entails SFD policy development, the granting of loan facilities, reducing guarantees against loans, feasibility studies, and assessing the prospects for marketing," al-Agami said.
Canada has expressed enthusiasm for bilateral cooperation in the development of SMEs in Egypt in order to overcome financial and managerial obstacles and consequently boost growth potential, said Canadian Ambassador to Egypt Michel de Salaberry in a statement given on his behalf by the regional director of the Canadian International Development Agency (CIDA).
The Canadian Ambassador referred to the crucial role of SMEs in overall economic and social development, welcoming the Foreign Trade Ministry policy for raising exports by supporting SMEs marketing and export potential.
At present, exports by SMEs make up only 4 per cent of the nation's total, despite the huge potential for penetrating more markets.
The Ministry of Foreign Trade plan that was submitted to the seminar included several proposals for financial services and developing SMEs through greater efficiency of financial institutions, accurate follow-up and evaluation of projects.