The National Bank of Egypt (NBE) aims to increase the size of loans granted to small- and medium–sized enterprises to EGP 70bn over four years, according to the bank’s CEO Hazem Hegazy.
Hegazy said that NBE began funding SMEs in 2010, noting that the current size of loans granted to these projects amounts to EGP 28bn, out of EGP 230bn of total loans.
He added that Egypt has a great opportunity for developing SMEs, pointing out that 80% of 2.4m SME projects operate in the unofficial market, which hinders the ability of banks and financial leasing companies to reach them.
“NBE pays special tribute to the industrial and food agricultural sector, in line with the state’s efforts,” he said. “This contributes to easing the burden on hard cash and increasing its resources.”
He noted that tax revenue in Egypt amounts to EGP 200bn. “Should the state successfully include all SMEs in the official system, collected tax would boost to EGP 1tr.”