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  • Tuesday, 01 August 2023

In Video: The Ministry of International Cooperation Reviews Grant Provided by the Kingdom of Saudi Arabia to Contribute to Financing MSMEs

● The Grant Management Committee inspects models of small and micro-sized projects implemented on the ground in Cairo and Port Said.

● Minister of International Cooperation H.E. Dr. Rania A. Al-Mashat: The Egyptian-Saudi partnership reflects efforts to promote development in various priority areas.

● EGP 1.5 billion in financing to fund 3,524 projects in 27 governorates, providing 17,000 job opportunities.

● Financing of 1,350 micro-sized projects, 2,087 small projects, and 95 medium-sized projects through banks and intermediary institutions.

● 12 beneficiaries, including banks, leasing companies, and the Micro, Small and Medium Enterprises Development Agency (MSMEDA).

The commercial, agricultural, livestock and industry sectors are the sectors most benefiting from the funds.

The Ministry of International Cooperation reviewed the progress of ongoing efforts to develop the micro, small, medium-sized enterprises (MSMEs) through the grant provided by Saudi Arabia, amounting to $200 million. This grant is one of the main components of developmental cooperation efforts between Egypt and Saudi Arabia, to provide direct and indirect financing to banks and intermediary institutions to fund MSMEs,  promote inclusive and sustainable growth, and provide job opportunities for youth.

This comes within the framework of the visit made by Saudi Arabia’s Grant Management Committee for the development of MSMEs to inspect small and micro-sized projects funded by Banque du Caire and the Industrial Development Bank (IDB) as part of the financing provided to these banks from the grant, implemented on the ground in Cairo and Port Said, affirming the importance of the role played by these projects in providing job opportunities for youth, stimulating innovation, and promoting local manufacturing.

The Grant Management Committee inspected six projects in the clothing manufacturing, plastic products manufacturing, and packaging materials manufacturing sectors, in addition to a number of micro-sized projects.

The Ministry of International Cooperation stated that the total financing provided by the Grant Management Committee to finance MSMEs projects since the beginning of its work is around 1.5 billion EGP, which contributed to financing 3,524 projects in 27 governorates resulting in approximately 17,000 job opportunities in various development sectors, including  the commercial, agricultural, livestock and industry sectors.

12 entities benefited from the financing, including Banque du Caire, the Agricultural Bank of Egypt, the Industrial Development Bank, the Social Fund for Development (SFD), and the National Bank of Egypt. In addition to the entities that directly benefited from the grant financing, such as EFG Hermes Leasing Company, Enmaa Finance Company, Plus Leasing Company, vaLU for installment sales services, Global Leasing Company, UE Finance, and Contact Leasing Company.

The commercial sector was at the forefront of the sectors benefiting from the financing, with more than 1,384 projects financed, followed by the ride-sharing transport sector with 897 projects, agriculture and livestock with 723 projects, industry with 357 projects, and healthcare with 107 projects. Small projects received the majority of the financing, with 2,087 projects financed, followed by micro-sized projects with 1,350 projects financed.

The commercial sector came at the forefront of the sectors that benefited from the financing, as more than 1,384 projects were funded, followed by the participatory transport sector, which benefited 897 projects, then the agriculture and livestock sector by 723 projects;  then the industry sector that amounted to 357 projects, and the 107 projects in the health care sector, and small projects accounted for the most part. Of the financing, 2087 projects were funded, followed by 1350 projects for micro-enterprises. As for the small projects, they received the majority of the financing, with 2,087 projects financed, followed by micro-sized projects with 1,350 projects financed.

Minister of International Cooperation H.E. Dr. Rania A. Al-Mashat applauded the efforts made in partnership with Saudi Arabia to support comprehensive development efforts in Egypt. H.E. explained that the grant directed to MSMEs represents one of the multiple pillars of cooperation between the two countries. This cooperation is reflected in implementing and financing vital projects, on top of which are the Sinai Peninsula Development Program, the implementation of King Salman International University,  as well as residential and agricultural communities, support for the implementation of water and sanitation projects, and other projects that reflect the strength and durability of relations between the two countries.

It is worth mentioning that Al-Mashat recently witnessed the signing of a financing agreement between the Saudi Grant Management Committee and the Saudi Fund for Development (SFD) worth 150 million EGP to contribute to financing MSMEs projects that support industrial projects in all governorates. In addition, this financing focuses on value chains intending to provide raw materials and various requirements necessary for production and ensure that products reach consumers, which guarantees the continuation and expansion of these projects.