Mohamed El-Etreby — the Head of the Federation of Egyptian Banks and Chairperson of Banque Misr — stated that the quantity of funds granted by the Egyptian banking sector to micro, small, and medium enterprises (MSMEs) exceeded EGP 400bn in 2021.
This displays the nice curiosity that the state and the Central Financial institution of Egypt (CBE) connect to this sector, which is important in attaining sustainable growth.
El-Etreby added that Banque Misr’s financing portfolio for the MSME sector amounted to greater than EGP 61bn by the top of 2021, in comparison with solely EGP 400m in 2014, pointing to the financial institution’s launch of the “digital mortgage” product, which presently has a portfolio that quantities to about EGP 15bn.
In his speech on the Convention on the Way forward for Small and Medium Enterprises 2030 Imaginative and prescient on Sunday, Al-Etreby indicated that Egypt has greater than 3 million MSMEs, stating that the Egyptian state confirmed its early curiosity in supporting this sector earlier than the emergence of the coronavirus pandemic, because the CBE launched a number of financing initiatives in addition to the technique of the Nationwide Council of Funds, which supported digital transformation, fintech, and monetary inclusion for this sector.
He defined that the measures taken by the state and the CBE to assist MSMEs elevated the quantity of financial sectors that cope with the banking sector from 14% in 2014 to 51% in 2021.
El-Etreby additionally identified that the CBE launched an initiative in 2016 to assist MSMEs by obligating banks to allocate 20% of their credit score portfolio in favour of those tasks earlier than elevating it to 25% final 12 months, believing within the nice developmental position of such companies in attaining financial growth.
Moreover, he confused that MSMEs have a serious position in creating job alternatives, lowering unemployment, growing exports, supporting the commerce steadiness, offering merchandise within the native market, changing the native product with the imported one, assuaging strain on the native foreign money, and integrating the casual financial system into the official one.
He additionally defined that with the purpose of the UN to create 600 million jobs by 2030, the best position in creating these alternatives is represented by MSMEs that may create six out of 10 required alternatives.
Moreover, El-Etreby stated that the CBE took many measures to cut back the curiosity by 400 factors for MSMEs and directed to postpone the fee of instalments for a interval of six months, and the Credit score Danger Assure Firm of the CBE assured financial institution financing for this sector with particular situations in addition to the growth of digital transformation and elevated reliance on fintech.
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