CAIRO: In a move to support Small and Mid-Cap Enterprises (SME) and micro enterprises, the Social Fund for Development (SFD) will pump 1.6 billion EGP to fund enterprises by the end of current year, SFD head Hanaa Al-Hilaly said, Al-Borsa Business Daily reported.
Hilaly unveiled that SFD agreed with the National Bank of Egypt and the Ministry of Finance to form an alliance to develop the SMEs sector along with converting the un-official sector to be official sector.
The unofficial sector includes SMEs and micro-enterprises, Hilaly said and that the unofficial sectors include food industries projects, timber products, crafts, and others.
Minister of Local Development Adel Labib announced that SFD agreed Tuesday to fund 1,036 SME projects with a 4.6 million EGP total investments and pointed out that 778,600 EGP of the sum are from people, according to the Ministry of Local Development homepage.
The 1,036 SMEs are scheduled to be executed in 21 Egyptian governorates, it stated, adding that the established SMEs will be towards animal production projects, poultry farms, and sales outlets.
SMEs represent 90 percent of total companies in Egypt since it provides between 70-80 percent of Gross Domestic Product (GDP), and about 75 percent of job opportunities, Ahram Gate reported.
The importance of small and mid-cap industries lies in their ability to create job opportunities, diversifying incomes, and boosting growth rates.
Over the will-established SMEs, the governorate of Luxor will acquire a large number of developmental projects that reflects the government’s keenness to develop Upper Egypt governorates. A total of 182 SMEs will be established in Luxor followed by Sharqia, which will acquire 122 projects and Minya by 93 new projects.
A total of 425 SMEs of the total 1,036 developmental projects will be for breadwinning women, he said and that women’s share of SFD projects are up to 60 percent of the total projects.
Labib unveiled that the SFD witnessed a large increase of number of established projects in the past few months, pointing out that 427 new projects were established in April.