Small and medium businesses are getting a huge boost in loans and investments.
Great news for all you industrious dreamers and entrepreneurs; thanks to a recent contract between the Micro, Small and Medium Enterprise Development Authority (MSMEDA) and the National Bank of Egypt (NBE), small and medium sized projects now have access to a EGP 400 million resource pool to fund their projects and developments. Commercial projects in in the fields of industry, livestock, renewable energy, agriculture as well as franchises may be granted up to EGP 5 million to speed things along, with other fields eligible for an EGP 2 million financing deal.
This comes in as part of the country’s recent focus on supporting small-and-medium-sized businesses and projects, providing around EGP 24 billion in financing to 2.8 million projects thus far, spawning something in the neighbourhood of 4 million jobs and furthering Egypt’s economic growth in a time when it is sorely needed. In addition, it is planned that 20% of future bank loans within the coming four years are to be allocated to Small and Medium Enterprises (SMEs), with interest on loans given to youth initiatives staying under the 5% mark, giving would-be entrepreneurs and business owners a great opportunity to get cracking.
Established in 2017, the MSMEDA’s main goal is to nurture, support and finance SMEs; having financed around 224,000 micro and small projects with a pool of EGP 4.5 million in 2017 alone, creating 305,000 jobs in the process.