Dr. Rania Al-Mashat:
The financial sector is the largest beneficiary of development financing from development partners, at 40% from 2020 to May 2025.
Cooperation with the Federation of Banks enhances private sector companies' access to the "HAFIZ" platform.
Mr. Mohamed El-Etreby: The Federation of Banks is keen to enhance the capabilities and competitiveness of small and medium-sized enterprises in line with Central Bank directives.
The Ministry of Planning, Economic Development and International Cooperation signed a bilateral cooperation protocol with the Federation of Egyptian Banks to foster dialogue between the banking sector and international development partners, especially in supporting small and medium-sized enterprises (SMEs). The cooperation aims to maximize the benefits of the "HAFIZ" Hub for Advisory, Finance, and Investment for Enterprises, which the Ministry launched as an innovative mechanism to advance the private sector empowerment agenda by facilitating access to development finance and technical services. The protocol was signed by H.E. Dr. Rania A. Al-Mashat, Minister of Planning, Economic Development and International Cooperation, and Mr. Afdal Naguib, Board Member and Treasurer of the Federation of Egyptian Banks, on behalf of Mr. Mohamed El-Etreby, Chairman of the Federation of Egyptian Banks and Chairman of the National Bank of Egypt.
The protocol was signed during the "Development Finance to Foster Private Sector-Led Growth & Jobs" conference, organized by the Ministry in the New Administrative Capital, under the patronage and in the presence of His Excellency Prime Minister Dr. Mostafa Madbouly, Lieutenant General Eng. Kamel Al-Wazir, Deputy Prime Minister for Industrial Development and Minister of Industry and Transport, Mr. Makhtar Diop, Managing Director of the International Finance Corporation, Ms. Gelsomina Vigliotti, Vice President of the European Investment Bank, Mr. Stefano Sannino, Director-General for Southern Mediterranean and Middle East at the European Commission, and other development partners and representatives of the business community and private sector.
Commenting on the protocol signing, H.E. Dr. Rania Al-Mashat emphasized that the private sector in Egypt has become a key driving force behind economic transformation, playing a pivotal role in promoting sustainable development, creating job opportunities, and stimulating innovation across various sectors. This remarkable activity comes amidst the government's clear commitment to creating a more supportive and stimulating business environment and activating effective partnerships with international institutions and development partners, with the aim of maximizing the private sector's benefit from financing, technical support, and consulting services available at both local and international levels.
In this context, the Ministry of Planning and Economic Development and International Cooperation launched the "HAFIZ" Hub for Advisory, Finance, and Investment for Enterprises, to bridge the information gap and create a link between the private sector and development partners. She highlighted that development financing to the private sector amounted to $15.6 billion between 2020 and May 2025, of which the financial sector received over 40%. She added that cooperation with the Federation of Egyptian Banks will open more avenues for banks and their corporate clients to benefit from concessional financing and technical support available from development partners through the "HAFIZ" platform.
For his part, Mr. Mohamed El-Etreby, Chairman of the Federation of Egyptian Banks, stated that the Federation is more keen than ever to improve the capabilities and competitiveness of small and medium-sized enterprises, in line with the Central Bank's directives in this regard. This is achieved by supporting the trend towards adopting policies and programs aimed at simplifying the procedures for establishing SMEs, encouraging business development centers and entrepreneurship initiatives, and promoting industrial and technological centers and incubators to enhance access to various markets and support links and supply chains between large industries on one hand and small and medium-sized industries on the other. The Federation has established a specialized committee for small and medium-sized enterprises to become one of its permanent committees. The Federation's Board of Directors has been committed to support the committee and activate its role to contribute to overcoming all challenges that may limit banks' efforts in cooperating with and supporting SMEs.
The committee is currently working to assist banks in achieving the targeted percentage in accordance with the regulations of the Central Bank of Egypt by exchanging experiences and best practices, particularly in the areas of entrepreneur financing, under the umbrella of the Federation and the Central Bank of Egypt.
It also studies general policies affecting the SME system, works to promote relationships with relevant bodies such as the Micro, Small and Medium Enterprises Development Agency (MSMEDA), and coordinates with some economic sectors, the Federation of Egyptian Industries, the Credit Risk Guarantee Company, and I-Score. It also examines topics such as financial inclusion and transition to the formal economy, digital transformation, green finance, and supply chain finance, and how to utilize them in financing SMEs.
Under the protocol, the Ministry of Planning, Economic Development and International Cooperation, through its "Private Sector Participation Unit," will share requests from SMEs applying to the "HAFIZ" Hub for Advisory, Finance, and Investment for Enterprises with member banks of the Federation. This includes providing necessary information and data to banks about these projects. The Ministry, in cooperation with the Federation, will also work to grant member banks of the Federation the authority to register on the "HAFIZ" platform as users and benefit from the data and financing and technical opportunities it provides from international development partners. The Ministry also allows interested banks to participate on the platform as financial or consulting service providers by listing their financing and training programs on the platform.
The protocol also includes exploring innovative financial tools to support SMEs. The Ministry will enhance dialogue with the Federation to study and propose new financial means and tools that would enable SMEs to easily access financing, insurance, and other financial services, in cooperation with international development partners.