Egypt's Small and medium enterprises (SMEs) account for over 90 per cent of Egypt's economic activity but continue to face barriers to innovation, productivity, and formalisation, according to a new report by the Organisation for Economic Co-operation and Development (OECD). Published under the OECD Country Programme with Egypt, the report calls for targeted reforms to unlock the growth potential of the SME and startup ecosystem. It identifies Egypt's large market and young population as key assets, but highlights persistent challenges such as limited access to finance, digital tools, and formal business frameworks. The OECD stresses the need for stronger policy coordination, decentralised development, and increased support for innovative firms. The report aligns with Egypt's Vision 2030, which emphasises private sector empowerment and SME development. It commends the country's progress in digital transformation and recommends a national strategy for SME digitisation, including tax incentives and broader access to fintech solutions. Among its key recommendations are the introduction of localised development programmes, phased licensing for fintech companies, SME impact assessments for new legislation, regulatory simplification, enhanced support for women entrepreneurs, improved incubator standards, and expanded credit guarantees. Minister of Planning and Economic Development Rania Al-Mashat said the government is actively advancing these priorities, noting that the Ministerial Group for Entrepreneurship is finalising a national startup charter and new sector-specific incentives. Basil Rahmy, CEO of the Micro, Small and Medium Enterprise Development Agency (MSMEDA), added that the agency is currently updating Egypt's SME strategy in line with the OECD's recommendations. Egypt also recently assumed co-chairmanship of the OECD's MENA Initiative on Governance and Competitiveness for Development for the 2026–2030 period, alongside Italy and Turkey. Attribution: Amwal Al Ghad English Subediting: M. S. Salama Ask ChatGPAttribution: Amwal Al Ghad English
