Governor of Egypt's South Sinai discusses investment, tourism with Serbian officials    Egypt U23 coach sees reason for optimism despite Olympics exit    Egypt rolls out QR code certificates for coronavirus vaccination    Regional forces join offensive against Mozambique extremists    Many feared dead in terrorist attack in north: Iraq military    UN warns hunger is expected to rise in 23 global hotspots    Egypt reports 45 new coronavirus cases, 4 deaths on Friday    Vaccinated people can carry as much virus as others: Study    Judo: Japan's Ono loses first bout since 2015    Swimming: US star Dressel wins 3rd goal in Tokyo, sets 100m fly world record    New Chinese investments pumped into SCZone    'Cooperation with Nile Basin countries key pillar of Egypt foreign policy': Irrigation minister    Scarlett Johansson sues Disney over its streaming release of 'Black Widow'    Hatif Libya, U.S. Infinera sign deal to upgrade Libya's fibre optic network    Ethiopia asks Algeria to correct Arab League's 'misperceptions' about GERD    Russia to send delegation to Egypt in August for its mega industrial zone project    Fitch forecasts Egypt's real GDP growth of 5.5% in FY2022/23    Qatar appoints ambassadors to Egypt and Libya    Ethiopia says 2nd GERD filling 'done according to 2015 DoP' with Egypt, Sudan    Over 1600 exporters applied to obtain their arrears through cash repayment initiative's 3rd stage : Finance minister    Egypt's transport start-up SWVL preps for Nasdaq listing after merger with Queen's Gambit    Father builds exoskeleton to help wheelchair-bound son walk    Russian delegation to visit Egypt today for Sharm al-Sheikh, Hurghada security checks    Remembering Roushdy Abaza: Egyptian silver screen's first man    Russia flights to Egypt resorts of Sharm el-Sheikh, Hurghada to resume on August 9    Orange Egypt Introduces Amazon Prime Video    Tokyo Olympics: Cautious opening ceremony, shy start for Egyptians in competitions    Mallawi Museum in Upper Egypt holds recycling workshop for children during Eid Al-Adha    Egypt keen on stable tax policies to attract more investors: Finance Minister    Niagara Falls illuminated in Egyptian flag to mark 23 July Revolution anniversary    Thanaweyya Amma exams resume after Eid Al-Adha holidays    Sudan declares state of emergency as water goes beyond Merowe Dam capacity    Egypt, Japanese Olympic Committee discuss boosting sports cooperation    1 child orphaned every 12 seconds due to COVID-19-associated death: World Bank    Capital flows into EM keep recovering after March 2020 slump: Central Bank of Egypt    US emphasises AU's role in mediating Ethiopian damdispute    Ethiopia ready to resume dam talks with no legally binding agreements: Ethiopian official    Sunken city of Thônis-Heracleion in Egypt's Abu Qir bay yields new archaeological treasures    New films, concerts, and destinations for Eid Al-Adha holidays    Egypt, Oman discuss enhancing bilateral economic, investment relations    Al Ahly v Kaizer Chiefs: Cairo giants eye 10th CAF Champions League title    Etisalat Misr partners with Bassita to contribute to a Cleaner Nile    Tunisia hopes to have a UN role in resolving Egypt-Ethiopia dam dispute    Egypt denounces Ethiopia's move to start second filling of giant dam    APO Group enters new exclusive agreement with Getty Images on African press releases and images    On International Museum Day, Egypt opens two new museums at Cairo Airport    Egypt's Ahly is establishing a new stadium, expected to be 'sports complex'    Old Cairo's Al-Fustat will be revamped on Egyptian President's directives    







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



Egyptian government, banking sector take strong action to support MSMEs
National Bank of Egypt receives $100m from European Investment Bank to support SMEs
Published in Daily News Egypt on 12 - 06 - 2021

In the past few days, Egyptian government and banking sector have been very active in support of the micro, small, and medium enterprises (MSMEs).
The Central Bank of Egypt (CBE) recently decided to increase the percentage of financing to these projects to 25% of the total loan portfolio of banks.
As part of its keenness to support the country's MSMEs, the National Bank of Egypt (NBE) and the European Investment Bank (EIB) signed a new financing contract.
It is aimed at supporting the needs of these projects, to activate and support this vital sector, especially in light of the economic consequences of the novel coronavirus (COVID-19) pandemic.
NBE Chairperson Hisham Okasha said that this financing will serve the MSMEs sector, which is an important and vital economic sector in Egypt. This reflects the state's great attention to the sector as a top priority, as it provides many job opportunities and supports the state's development plans and growth rates.
Yahya Aboul Fotouh, Vice-Chairperson of NBE, said that the financing contract will be re-lent to small- and medium-sized enterprises (SMEs) operating in the industrial, trade, and agricultural sectors. This aims to help them improve their use of energy, water, and land resources.
In addition, this would support investments in terms of using high-performance technology with quality and efficiency. It would also enable companies to identify exemplary green technology approaches available in Egypt through the Green Economy Finance programme.
For his part, Tarek Fayed, Chairperson and CEO of Banque du Caire, said that the bank aims to take the financing of MSMEs to 25% of the bank's total credit portfolio within two years.
He pointed out that this financing currently accounts for nearly 20% of the portfolio, and is characterised by diversity.
Fayed said that the bank has contributed to providing about 1.3 million job opportunities over 19 years, as well as a sustainable production project that serves various segments, especially youth and female breadwinners.
He added that micro-loans were granted to 500,000 customers during the past three years. Moreover, the bank pays great attention to supporting newly established companies and very small companies by providing non-financial facilities and services. These are aimed at achieving financial inclusion and simplifying credit granting procedures.
Fayed's remarks came during the signing of a contract for the "Tamkeen Microfinance Project". The contract will take place between Banque du Caire and the Mico, Small, and Medium Enterprises Development Authority (MSMEDA), at a value of EGP 500m.
Hazem Hegazy, Vice-Chairperson of Banque du Caire, said that the bank is working to launch innovative technological banking solutions and services for micro-enterprise customers.
These solutions will save time and effort through the mechanisation of microfinance. In addition, the bank will be launching a service to accept electronic payments on mobile phone wallets through QR codes, with the option to collect instalments through a mobile phone wallet.
For its part, the Export Development Bank of Egypt (EBE) aims to take its MSMEs financing portfolio to 14% by the end of December 2021, compared to 11% at the end of June 2020.
In a statement to the Egyptian Stock Exchange (EGX) at the end of last week, the bank stressed the importance of the CBE's initiatives to finance SMEs, especially the 5% initiative.
Hegazy said that the bank is keen to benefit from the CBE's initiatives, while giving priority to expanding the credit portfolio of exporting customers. This covers manufacturers and customers who provide products for the purpose of import substitution.
He added that the bank is also working to achieve the most geographical spread possible in various governorates. It also seeks to provide financing products that suit the nature of the activities of SME clients.
Furthermore, the bank targets financial associations and institutions that operate in the field of lending to micro-enterprises.
Last week, Prime Minister Mostafa Madbouly witnessed the signing of a Memorandum of Understanding (MoU) between the Ministries of Local Development and Youth and Sports.
The MoU aims to support and develop national initiatives related to MSMEs, with the aim of providing direct and indirect job opportunities, especially for young people.
This is part of the state's directions towards raising employment levels as a strategic goal within the government's work programme and a major aspect of Egypt's 2030 vision for sustainable development.
The state plans to do this by providing decent and productive job opportunities that contribute to reducing unemployment rates, doubling productivity rates, and improving citizens' lives.
It also aims to integrate the informal sector into the economy. This will reduce informal transactions and can happen as the result of developing human workforce, focusing on MSMEs, and encouraging self-employment and entrepreneurship.
The MoU aims to establish a national integrated pioneering system to support and develop MSMEs. It will also promote the culture of entrepreneurship and support the skills and capabilities of young people to become owners of successful projects.
This is expected to happen by unifying and coordinating the efforts of development partners with the aim of incubating these projects and providing an integrated package of technical support.
The support covers the fields of training, technology, and marketing for all their phases, with the funding to match the volume and needs of each project.
For its part, the EGX's Index Committee has adopted the 'Tamayoz' index methodology. It includes a sample of companies whose securities are listed on the SMEs market, provided that the new index is launched within days.
EGX Chairperson Mohamed Farid said that this is a major step taken within the comprehensive restructuring process for the SMEs market.
He added that within a few days, an executive decision will be issued to compel the companies whose securities are listed on the SMEs market list to contract with an approved sponsor registered with EGX to start the restructuring plan.
This plan includes obligating the sponsor to assist companies listed in the SMEs market in developing and building the capabilities of investor relations departments.
It will help create more professional communication with shareholders and investment institutions through conferences. These will be organised to announce and analyse financial statements on a quarterly basis.
Moreover, sponsors will also be obliged to provide research coverage through research coverage companies operating in the market. This contributes to attracting more institutional investments to this market and promoting liquidity and trading.
Farid explained that the completion of the Index is a step within the comprehensive restructuring plan for the SMEs market, which the EGX launched two years ago.


Clic here to read the story from its source.