The Central Bank of Egypt is currently studying the launch of new specialized banks to finance small and medium enterprises.
Central Bank of Egypt Governor Tariq Amer said that the Central Bank of Egypt is seeking to open the door to the introduction of new models of banks that finance small and medium enterprises, and have a structure different from conventional banks.
Earlier this month, Egyptian President Abdel Fattah al-Sisi pointed out the need to pay attention to the small and medium-sized enterprises sector for its important development role and the job opportunities it provides in this regard, by providing the necessary funding to double the size of projects and meet the needs of all categories of entrepreneurs. Egyptian Youth.
It also aimed at strengthening the resources of the SME system and supporting its coordination role between the activities of the concerned ministries in order to develop and develop SME sector in order to ensure the implementation of the ambitious initiatives in this regard and to create a favorable environment for this. To maximize the productivity, diversity and competitiveness of the national economy and to spread the culture of entrepreneurship, With special priority given to industrial and commercial projects.
A few days ago, the International Monetary Fund announced a paper on the integration of SMEs into the formal economy and the banking sector in the Middle East and Central Asia at a seminar held at the American University in Cairo last week.
The Middle East and Central Asia Central Bank (IMF) Middle East and North Africa Region Director, Jihad Azour, said that SMEs absorb about 50% of the region's workforce, yet account for only 7% of the total lending portfolio.
According to the Enterprise, the European Bank for Reconstruction and Development (EBRD) Small Projects Program Manager Reem Al-Saadi said that the licensing of new banks will eventually move towards a new legislative framework to accommodate new instruments, which will support the sector.
Other new financing tools, including SME collective financing and person-to-person lending, could be introduced through a unified electronic platform, pointing out the need to establish a central entity to coordinate SME development programs, similar to the Small and Medium Enterprises in Malysia.
The Small and Medium Enterprises project for young people in Egypt provides many facilities and financial and non-financial advantages, which enable the projects funded by the system to continue and develop, either through the branch offices spread throughout the Republic or through cooperation with development partners. Marketing and internal and external exhibitions, as well as the availability of feasibility study models for projects of various types, in addition to providing a variety of financing services through various channels related.