Basil Rahmy, CEO of the Micro, Small, and Medium Enterprise Development Agency (MSMEDA), affirmed the strong support provided by the Ministry of Finance to the small and medium enterprise (SME) sector through the General Authority for Government Services, and its cooperation with MSMEDA to facilitate the participation of micro, small, and medium business owners in public procurement and contracting systems as suppliers. This, he said, has opened up new marketing opportunities for these enterprises, ensuring their sustainability and helping them develop their production to meet the standards and requirements of the Government Procurement Authority. Rahmy explained that this cooperation comes within the framework of Law No. 152 of 2020 on the Development of Small Enterprises, which was enacted with strong support from the political leadership and includes numerous advantages, incentives, and facilitations for SME owners. He stressed that the Agency is committed to enabling project owners to achieve the maximum possible benefit from these services, which will help develop their businesses, increase profitability, and enhance their contribution to the national economy. The CEO added that all micro, small, and medium enterprises can access these benefits and incentives once they obtain the classification and benefits certificates through MSMEDA's branches across all governorates. These certificates allow them to enjoy a wide range of financial and non-financial services, including the ability to register on the government procurement system. Rahmy stated that the Agency has successfully registered 18,000 small and medium enterprises with government entities across Egypt since the implementation of Law No. 152 of 2020, with the total value of tenders awarded to project owners reaching EGP 1.25bn to date. He stressed that MSMEDA, along with all relevant ministries and state institutions, continues to welcome entrepreneurs and business owners seeking to regularise their operations and integrate into the formal economy, so they can benefit from the financial, production, and marketing advantages and services provided to support them. Rahmy further explained that the Agency issues a five-year licence for regularised projects, enabling project owners to benefit from a unified customs tax rate of 2% on imported machinery and equipment. The licence also suspends any criminal proceedings filed against the projects and allows them to be registered for social insurance from the date of receiving the temporary licence, regardless of when the business actually started. Additionally, eligible projects can benefit from the tax incentives introduced under Law No. 6 of 2025, which sets a graduated tax rate starting at 0.4% of annual business volume for projects generating EGP 500,000 per year, rising to 1.5% for those with annual revenues between EGP 10m and EGP 20m. The law also grants exemptions from several types of taxes and stamp duties, providing comprehensive support to help small businesses grow and thrive.
