Nevine Gamea, Egypt’s Minister of Trade and Industry and Executive Director of the Micro, Small, and Medium Enterprises Development Agency (MSMEDA), has confirmed that the agency allocated EGP 1.1bn to finance micro-enterprises in Egypt.
This will take place in cooperation with major banks working in the Egyptian market, and in accordance with the contracts recently signed between the agency, Banque Misr, Banque du Caire, and the Agricultural Bank of Egypt (ABE),
Priority for the financing will be given to the villages targeted by the presidential “Decent Life” initiative for the development of the Egyptian countryside.
The minister said that this financing will take place in accordance with the new mechanisms set by the Enterprise Development Law 152 of 2020. This has allowed for an increase in the financing of micro-enterprise loans to EGP 500,000.
The financing has also allowed for the expansion of financing for projects that are able to provide many job opportunities, especially for youth and women, which leads to a positive return on the owners and workers of these projects.
Gamea added that the project owners operating in the informal sector can switch to the formal sector to benefit from these new funds provided by the agency.
They will also be allowed to enjoy a large number of new facilities provided to them by the new Law 152 of 2020. This includes being able to obtain a temporary licence valid for five years allowing them to operate their projects in a manner that is officially recognised by all state agencies. This will carry on until they complete their full reconciliation and obtain the final operating licence.
The minister pointed out that these projects, upon obtaining the temporary licence, will receive a simplified tax treatment, represented by EGP 1,000 annually for projects whose annual turnover is less than EGP 250,000.
This will rise to EGP 2,500 annually for projects whose business volumes range between EGP 250,000 and EGP 500,000. Companies whose annual turnover is between EGP 500,000 and EGP 1m will receive EGP 5,000 annually of tax incentives.
Gamea added that the MSMEDA is working to implement state directives, and provide the necessary funds to expand the establishment of micro and small enterprises. This is particularly in rural villages targeted by the presidential “Decent Life” initiative to develop rural Egypt.
The minister noted that the agency is responsible for the economic committee concerned with providing job opportunities, and encouraging young people to exploit the various resources in their villages and governorates.
This includes establishing small and micro projects that contribute to the construction and development of these villages, and provide their residents with stable and successful job opportunities.