Finance ministry to provide EGP 5 bln support for Egypt MSMEs - Economy

Al-Ahram Weekly

2 days ago

Minister of Finance Ahmed Kouchouk and the Micro, Small, and Medium Enterprise Development Agency (MSMEDA) CEO Basel Rahmy have signed a cooperation protocol to provide EGP 5 billion, the most significant financial support to date, for Egypt's micro, small, and medium enterprises (MSMEs), according to a statement by the ministry on Sunday.
The ministry said the move aims to bolster private sector activity and empower young entrepreneurs.
Under the agreement, the Ministry of Finance allocates EGP 5 billion in the newly approved FY2025/2026 state budget to offer low-cost, targeted financing to startups and growing businesses.
The funding, effective 1 July, will prioritize high-impact, productive sectors as part of a new strategic partnership between the ministry and MSMEDA.
The agreement is part of a broader vision to foster sustainable economic development through fiscal policies that support entrepreneurship, encourage formalization, and deepen local manufacturing and export capacity.
It also represents a key milestone in the government's efforts to shift from short-term subsidies to long-term, investment-based support models for job creation and economic empowerment.
Moreover, Minister Kouchouk said the initial consensus regarding the protocol has been reached with MSMEDA to fund a series of initiatives.
These include support for businesses benefiting from the simplified and unified tax system, entrepreneurship development, and deepening local components in industrial, productive, and export-focused projects.
The ministry also plans to direct financing to vulnerable families as part of its economic empowerment efforts, aiming to transition them from welfare to productive activity.
'We're launching a new phase of strategic cooperation with MSMEDA that prioritizes financial sustainability and long-term economic impact. This protocol marks a strong push toward enhancing Egypt's private sector and making economic growth more inclusive,' Kouchouk noted.
He added that the ministry will provide highly competitive financing terms throughout the current fiscal year for the first wave of businesses joining the new tax system. This will help reduce costs for small businesses and incentivize formalization.
For his part, Rahmy affirmed that the agreement opens promising new avenues for economic inclusion, particularly for young entrepreneurs and startups.
'This partnership reflects our shared belief in the power of emerging enterprises to drive innovation, create jobs, and grow the national economy,' Rahmy said.
'Through the minister's forward-thinking policies, we're seeing a real shift in how financial tools are being used to build long-term resilience and opportunity,' he added.
The protocol comes at a time when Egypt is intensifying its support for MSMEs. This sector contributes more than 75 percent of total employment and plays a central role in the country's sustainable development strategy.
The agreement also complements other national initiatives designed to formalize the informal economy and expand access to financing and digital tools for small businesses.
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