The Parliament has approved the Micro, Small, and Medium Enterprises (MSMEs) Law with majority vote.
Nevine Gamea, Minister of Trade and Industry and Executive Director of the Micro, Small, and Medium Enterprises Development Agency (MSMEDA), said that passing this law is an important step in the social and economic development process that Egypt is witnessing now.
She explained that the law will provide a legislative environment supportive to the development of these projects, especially since these projects represent more than 90% of the total projects that constitute the Egyptian economy, as it is the locomotive of development in most of the developing countries, and it is extremely important to increase the size of the GDP and exports.
She explained that the law introduces unified definitions for MSMEs in line with the definition applied in the financial and development institutions in Egypt.
The law also put in place flexible, new and updated mechanisms to facilitate the provision of financing for these projects and expand the provision of financial and non-financial incentives for the, as well as the development of simplified and flexible systems for permanent tax treatment.
She explained that the law established a stimulating mechanism to reconcile the conditions of projects operating in the informal economy to encourage them to switch to the formal sector, as this mechanism will provide a temporary license for these projects and protect them throughout the licensing period until they reconcile their conditions and enjoy a set of financial and non-financial incentives during the same period.
Facilitated procedures have also been developed to register and obtain approvals and operating licenses for setting up MSMEs with a priority to allocate them vacant lands available in industrial and tourist areas.
Gamea pointed out that the MSMEDA has become the legal and legislative authority concerned with the development of MSMEs.