ITIDA launches programme for development of CIT sector SMEs

The programme provides new finance mechanisms in collaboration with the banking sector at interest rates of 5-7%

The Information Technology Industry Development Agency (ITIDA) announced its integrated programme for the development of small and medium-sized enterprises (SMEs), especially in the field of software design and electronics manufacturing.
This comes within the framework of ITIDA's role of raising the efficiency of the Egyptian companies operating in the communication and information technology (CIT) sector.
The programme aims to help SMEs develop their plans and projects and increase the level of their operational efficiency and sustainability in a way that enhances their competitiveness in the local and global markets.
The programme offers a comprehensive package of technical assistance and development for the work of the Egyptian companies to be in compliance with the international standards, including providing means of financing to help companies overcome financial barriers.
This will happen through the comprehensive evaluation of advanced companies and directing them to maximise the benefit from the support programmes and various initiatives submitted by the agency, whether technical, financial, or advisory support, or support for skill and business development.
ITIDA will conduct a comprehensive assessment of the advanced companies in collaboration with civil society organisations, and it will also assist in conducting feasibility studies and business plans and projects through reviewing the technical, economic, and legal elements.
The programme also provides models that enable companies to transform intangible assets into financial values, in addition to formulating their business plans in accordance with the requirements and mechanisms followed in banks, and facilitate obtaining credit facilities and financing packages at interest rates ranging from 5% to 7% through the banking sector, which will be specified according to the size of the company, and their accredited classification by the Central Bank of Egypt (CBE) at a maximum of EGP 3m.
Asmaa Hosny, CEO at ITIDA, said that the launch of the programme comes within the state's and ITIDA's interest in the growth of SMEs, which represent the Egyptian economy and industry, especially the companies operating in the field of software technology, value-added services, and electronics design and manufacture, which directly contributes to the development of the performance of the CIT sector at the current stage—which is considered a fundamental pillar of a comprehensive development on the state level.
The programme consists of four phases, starting with the preparatory phase, which includes selection in accordance with the approved criteria for the programme announced by ITIDA on its website. Then, the evaluation phase takes place, which includes an analysis of accredited companies, entailing the development of the implementation and consultation plan and determining a team to follow up with the company, the schedule, and the main performance indicators.
The third phase of the programme includes preparing an information file for the company, which contains the company's action plan, as well as auditing the financial capacity of the company and creating a financial plan, in addition to evaluating the intellectual property assets of software companies and preparing the credit file in case of the need to obtain funding through financial and banking institutions.
Through the follow-up phase, companies will be communicated with in order to follow up on the implementation of the project's plan. The final accreditation phase includes the company's assessment, setting recommendations, and the final report.