Al-Mashat: SMEs have proven their ability to transform the economies of developing countries and drive development efforts.

Providing support for SMEs enhances increased employment opportunities in Africa and bridges the labor market gap.

The Egyptian government places SMEs and start-ups at the heart of its economic and structural reform policies.

The Hub for Advisory, Finance & Investment for Enterprises “Hafiz” platform could represent as a “regional public good,” and we are open to collaboration with African countries to replicate it.

The Ministerial Group for Entrepreneurship sets a roadmap to stimulate startups, innovation, and entrepreneurship.

“Pact for the Future” and the “Seville Conference” confirmed the crucial role of SMEs as a pillar of economic development.

The outcomes of the Seville Conference represent a promising opportunity to reshape the global financial system and focus greater attention on SMEs.

We call on governments and the private sector to share best practices and lessons learned to support SME sector growth.

H.E. Dr. Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, participated in the opening session of the First Global Ministerial Meeting on Small and Medium Enterprises in South Africa, organized by the United Nations International Trade Centre (ITC), in partnership with the Department of Small Business Development (DSBD), with the participation of Ms. Pamela Coke-Hamilton, Executive Director of ITC, Ms. Amina Mohammed, Deputy Secretary-General of the United Nations, Ms. Lisa Cummins, Minister of Energy and Business Development of Barbados, Dr. Jumoke Oduwole, Minister of Industry, Trade and Investment of the Federal Republic of Nigeria, Ms. Helene Budliger Artieda, State Secretary for Economic Affairs of Switzerland, and Ambassador Nelson Muffuh, UN Resident Coordinator in South Africa.The session was titled: “Navigating New Business Frontiers: EconomicTransformation through the Power of SMEs.”

In her speech, H.E. Dr. Rania Al-Mashat pointed out the significance of launching the first-ever global ministerial meeting focused on SMEs, organized by the International Development Center at a critical time for the global economy and trade.

H.E. explainedthat SMEs have demonstrated a strong ability to transform the economies of developing countries, as they are drivers of change and development, with economic and social impacts, becoming one of the strongest drivers of growth, prosperity, and innovation.

H.E. added that despite a $5.2 trillion financing gap, according to the World Bank, these projects are often the most resilient and adaptable, especially in emerging economies, where they contribute to economic resilience and inclusive growth.

The Minister of Planning, Economic Development and International Cooperation pointed out that in Africa, labor market participation does not exceed 38.29% of the population, which is a clear indication of the need for action and to leverage the continent’s natural and human resources to overcome these challenges, especially given the significant structural gaps in the areas of employment, productivity, and integration into global markets.

Al-Mashat emphasized that in order to overcome these gaps, it is necessary to unleash the full potential of SMEs, which globally represent more than 90% of the total number of companies, provide up to 70% of jobs, and contribute more than 50% of global GDP. These projects are also a pillar for diversifying Middle Eastern economies, while in sub-Saharan Africa and other regions, they are a key driver of employment, providing local solutions, and expanding global exports.

Moreover, H.E. pointed to the situation in Egypt, explaining that SMEs represent 43% of GDP and employ three-quarters of the workforce. Egypt’s Vision 2030 places these enterprises at the core of structural reforms, particularly in priority sectors such as green growth, regional trade, and digital innovation, adding that the launch of the Micro, Small, and Medium Enterprise Development Agency (MSMEDA) in 2004 laid a strong foundation for the growth of this sector in Egypt. Through providing financial services, capacity-building programs, export support, and regulatory reforms, the agency has helped improve the business environment and empowered SMEs to play a pivotal role in driving economic growth and job creation. This has contributed to strengthening the economy's resilience and cemented the position of SMEs as a key pillar of Egypt's sustainable development path, making ours a true success story.

H.E. Dr. Rania Al-Mashat also referred to the launch of the Ministerial Group for Entrepreneurship, which ensures coordination between various government entities, development partners, and the private sector, with a special focus on financing, regulation, and building an innovation ecosystem. 

H.E. explained that through the Hub for Advisory, Finance & Investment for Enterprises “Hafiz” platform, launched in 2023 for financial and technical support to the private sector, SMEs and startups benefit from advisory services, and more than 22,000 companies currently use the platform to access financing mechanisms, tenders, and advisory services provided by development partners.

She noted that this is part of broader efforts that included mobilizing more than $15.6 billion in concessional financing for the private sector between 2020 and 2025, and technical support worth more than $228 million, which will have a significant impact on SME development, digital transformation, and trade facilitation.

Al-Mashat also explained that Egypt, under its presidency of the climate conference COP27, launched the NWFE Program, which is a an innovative model enabling large corporations and SMEs to contribute to sustainable growth. She also highlighted the launch of South-South and Triangular Cooperation Strategies by the Ministry of Planning, Economic Development and International Cooperation to promote knowledge exchange and scale up successful practices, noting that Egypt is honored to join G20 Development Working Group meetings for the fifth time, under South Africa’s presidency, to discuss the importance of global public goods.

Furthermore, H.E. emphasized that given the complexity of the global trade landscape, these projects must be empowered to lead growth efforts. Egypt is therefore working to enhance the participation of small projects into regional value chains through the African Continental Free Trade Area (AfCFTA), in addition to supporting sectoral integration in areas such as agriculture, green industries, and digital services.

H.E. also added that these projects could be a key tool for addressing the debt dilemma in developing countries, as the “Pact for the Future”, issued by the UN Summit of the Future, underscores SMEs as a pillar for achieving long-term global economic and social objectives.

Al-Mashat also mentioned her participation in the 4th International Conference on Financing for Development in Seville, which witnessed significant pledges to support SMEs, representing a pivotal opportunity to reshape the global financial system in favor of these enterprises, especially in developing countries, through financial inclusion, technological progress, and broader market access, as interest in these projects represents a “global public interest.”

H.E. reaffirmed the need to integrate of SMEs into global value chains, align national programs with green and digital economy priorities, and improve the regulatory and innovation ecosystems, explaining that the Hub for Advisory, Finance & Investment for Enterprises “Hafiz” platform could represent a “regional public good,” and that we are open to South-South cooperation with governments and institutions in the South to replicate this model, providing wider access to advisory and financing services and digital tools.

Al-Mashat also noted that Egypt welcomes hosting the first meetings of the Creditors Forum and Joint Information Platform, both of which were proposed by the UN Secretary-General’s expert group, and governments, the private sector, and small businesses to share best practices and lessons learned to support inclusive growth of this sector.

Al-Mashat also reaffirmed Egypt’s commitment to multilateral cooperation and working with partners to promote SME growth and build a more just, and equitable global economy.