Rafah Crossing 'never been closed for one day' from Egypt: PM    Egypt will keep pushing for Gaza peace, aid: PM    Remittances from Egyptians abroad surge 70% YoY in July–May: CBE    Sudan's ambassador to Egypt holds reconstruction talks on with Arab League    Egypt's current account gap narrows, but overall BoP records deficit    Al-Sisi urges accelerated oil, gas discoveries, lower import bill    SCZONE signs $52.6m textile industry deals during China investment tour    Egypt hosts international neurosurgery conference to drive medical innovation    Egypt's EDA discusses Johnson & Johnson's plans to expand investment in local pharmaceutical sector    I won't trade my identity to please market: Douzi    Sisi calls for boosting oil & gas investment to ease import burden    EGX to close Thursday for July 23 Revolution holiday    Egypt, Senegal sign pharma MoU to unify regulatory standards    Famine kills more Gaza children as Israel tightens siege amid global outrage    Kuwait's Crown Prince, Egyptian minister discuss strengthening cooperation    Egyptian Drug Authority discusses plans for joint pharmaceutical plant in Zambia    Egypt's FM seeks deeper economic, security ties on five-nation West Africa tour    Two militants killed in foiled plot to revive 'Hasm' operations: Interior ministry    Egypt, Somalia discuss closer environmental cooperation    Egypt foils terrorist plot, kills two militants linked to Hasm group    Giza Pyramids' interior lighting updated with new LED system    Egypt's EHA, Huawei discuss enhanced digital health    Foreign, housing ministers discuss Egypt's role in African development push    Korea Culture Week in Egypt to blend K-Pop with traditional arts    Egypt reveals heritage e-training portal    Three ancient rock-cut tombs discovered in Aswan    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Egypt's Irrigation Minister urges scientific cooperation to tackle water scarcity    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    Egypt's Democratic Generation Party Evaluates 84 Candidates Ahead of Parliamentary Vote    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



12,000 SMEs facing problems in construction sector
Published in Daily News Egypt on 27 - 01 - 2015

Nearly 12,000 out of 15,000 small and medium-sized construction companies that are registered in the Egyptian Federation for Construction and Building Contractors (EFCBC) are facing problems; said Daker Abdellah, member of EFCBC in a statement Tuesday.
Funding the projects of those companies is a main obstacle that they are facing, he highlighted, calling on the EFCBC to develop national companies that can serve the construction sector and the Egyptian economy as a whole.
Abdellah added that banks claim that they aren't convinced enough to finance the projects of the SMEs in the construction sector due to the absence of feasibility studies for the projects.
Furthermore banks find that the owners of those companies lack the financial and administrative awareness that would make them capable of handling and managing their projects, in addition to the absence of budget calculations.
From the viewpoint of construction SMEs' owners, other obstacles are present, including the ambiguity when it comes to the requirement standards made by the Central Bank of Egypt (CBE) that all banks providing financial aids to SMEs should follow, unlike the clear set standards when it comes to financing large projects.
According to Abdellah, owners find that banks which provide aide to SMEs lack the presence of "cadres" who can actually determine whether or not the projects are feasible, with owners suggesting that banks should additionally rely on the accredited consultants at the CBE or members from EFCBC to make such decisions.
He also reflected that owners believe that it is possible that the lack of a "clear financial policy" for funding is the main reason why, banks aren't convinced of financing them.
Abdellah suggested that a committee should be formed to provide SMEs' owners with credit training and to teach them how to deal with banks. He further noted that management should be separated from ownership, and that banks can acquire a share of the projects as a means for protecting them and the money of the depositors that are used for financing the projects.
Financing means shouldn't be limited to banking institutions as it is possible to find funding portfolios within various types of institutions, Abdellah added, further calling on the EFCBC to have a role in training SMEs' company owners in the first phase of registration within the federation as contractors.
He further noted that training should cover the rules of management and how the company can become one of the pioneers in that business area, as well as learning the preparation of feasibility studies.
He further stressed that the federation's role should not only be limited to providing services as it also should have a supervisory role to follow up on contracting companies' work progress and the management of their projects.


Clic here to read the story from its source.