Egypt's Ministry of Justice and the International Finance Corporation (IFC) signed a memorandum of understanding on Thursday to launch an early warning system aimed at helping small and medium-sized enterprises (SMEs) detect financial distress before it escalates. The agreement, signed in the presence of Justice Minister Adnan Fangary and Planning Minister Rania Al-Mashat, marks a step forward in Egypt's broader efforts to strengthen the private sector and improve the resilience of its business environment. The system will provide self-assessment tools, technical assistance, and specialised financial and legal advisory services to enable SMEs to respond proactively to financial risks, the ministries said in a joint statement. "More than 97 per cent of Egypt's businesses are SMEs, employing over 75 per cent of the workforce. Ensuring their sustainability is a national priority," Minister Al-Mashat said. She added that the new platform reflects Egypt's shift toward preventative approaches that boost the financial readiness and competitiveness of smaller firms. Minister Fangary described the move as part of the ministry's push to modernise the country's legal and economic infrastructure and reduce insolvencies. "This system complements our drive to develop preventive justice and foster a more stable investment climate," he said. Cheick-Oumar Sylla, IFC's Regional Director for North Africa and the Horn of Africa, said the agreement aims at helping companies navigate financial uncertainty and contribute to sustainable economic growth. The early warning system is being developed as part of a broader cooperation framework between the Ministry of Justice and the IFC, a member of the World Bank Group. It aligns with Egypt's Vision 2030 agenda to empower the private sector and attract investment through stronger institutions and risk management tools. Attribution: Amwal Al Ghad English
