April 4, 2019 – USAID’s SEED conducted the second PPD workshop with the purpose of introducing actionable ideas that are supported by all the stakeholders to better finance the micro, small and medium enterprises (MSMEs) and entrepreneurs.
Around 80 participants from the Parliament, the government, private sector and academia attended the workshop, which presented the new Fintech Tools and Angel Investing Mechanisms.
The purpose of this series of PPD workshops is to exchange the experiences on MSMEs issues among Parliament Members, the government and experts to support micro, small and medium enterprises (MSMEs). The first PPD workshop, held on February 26, outlined the laws that are important to MSMEs and the amendments that have occurred by the Egyptian government in order to facilitate investment opportunities to MSMEs .
In the discussion during the second session, the participants provided useful comments and suggestions and recognized the importance of empowering the SMEs by removing the financial limitations that hamper their work. MSMEs are seen as the hope for the country’s economic recovery, because they work on development in all sectors and in many governorates all over Egypt providing job opportunities.
The workshop’s recommendations suggested having a tax exemption system for SMEs linked with the number of job opportunities created. In addition, there was an initiative for one bank or a group of banks to issue EGP 1 billion with a reduced risk portfolio for entrepreneurs who meet all the conditions except the credit history of the 3 years.
As a result of the PPD workshops, an SMEs Network has been formed by most of the stakeholders who participated in the two sessions.
The workshop was attended by representatives from the Central Bank of Egypt (CBE), The Micro, Small and Medium Enterprises Development Agency (MSMEDA), Ministry of Trade and Industry (MTI), Ministry of Investment and International Cooperation (MIIC), Federation of Egyptian Industries (FEI), Industrial Modernization Centre (IMC), Industrial Development Authority (IDA), General Authority for Investment and Free Zones (GAFI), National Council for Women (NCW), and several representatives form the private sector.