Dr Hala Al-Saeed, Minister of Planning, Monitoring and Administrative Reform, opened a workshop on "The SMB sector's contribution to achieving the vision of Egypt 2030" organized by the Small Enterprise Development Authority.
The workshop dealt with the various aspects of one of vital and pivotal sectors in the country's developmental orientation. It discussed how to integrate development efforts in this sector into the programs and plans of various ministries and egyptian bodies to achieve the view of Egypt in 2030.
The Planning Minister pointed out that the importance and priority of encouraging the small and medium-sized sector will be a meeting place for the various dimensions and axes of the Sustainable Development Strategy of Egypt in 2030 and the programs that are part of the industry's progress and the establishment of industrial clusters specialized or incubator for small and medium-sized industries as well as regional development programs and social justice programs, as well as its interest in the development of these projects by establishing incubators and encouraging and supporting entrepreneurship.
She stressed that the interest in small and medium-sized sectors is also part of the government's efforts to maintain the positive and progressive economic growth achieved after the successful implementation of the National Economic and Social Reform Program launched by the state in November 2016. The program also included the implementation of a large number of legislative and institutional reforms, which resulted in an annual growth rate of 5.3% in the 2017/2018 fiscal year, while retaining the same tax rate in the first quarter of the current fiscal year 2018/2019
She added that the government aims to continue its reform and development efforts through the four-year medium-term sustainable development plan and work program for the 2018-2022 period to increase growth to 5.8% in the first year of 2018/2019 to reach 8 % in the last year, 2022.
The state has identified a number of mechanisms for achieving these target rates. The most important of these mechanisms are the focus on promising sectors that drive economic growth, which has strong relationships with other sectors, including manufacturing, wholesale and retail, construction, real estate and utilities, telecommunications. In addition to sectors of extraction and agriculture, one points out that action plan is being developed to promote these sectors, identifying implementation programs and mechanisms and performance indicators in coordination between all ministries and stakeholders and in cooperation. A partnership with business.
She referred to the most important mechanisms that the government used to achieve target growth. She mentioned the mechanism for continued efforts to encourage and develop SMEs in promising sectors or other sectors and stimulate the integration of the informal sector in the formal sector.
She pointed out that the government has recently taken a number of serious measures to encourage small and medium-sized sectors. These measures were characterized by the full support of political leadership as well as dealing with various aspects that support the working environment for these projects. Billions of pounds with an interest rate of 6% have already been provided around £ 85.5 billion, benefit 355 thousand customers and a project until March 2018, and are provided by the Project Financing Development Agency.
On the sources of funding, Al-Saeed referred to the availability of other sources of non-bank financing for these projects, encouraging companies and NGOs to provide microfinance and encourage financial leasing while creating the necessary environment to facilitate the availability of these projects to finance through the provision of credit risk guarantee services granted for projects in this sector, and to provide credit questions for project classification according to credit ratings.
Regarding the role of the state in creating the institutional framework for work in the small and medium-sized sector, by setting up a single authority to monitor the activities of PMO's PMO premiers' decisions, these projects represent the main client, including the structure of the Egyptian Agricultural Bank and the development of the Industrial Development Bank and the Egyptian Labor Bank.
She added that the state has also worked to create the regulatory environment in support of its activities in this sector by attempting to complete the procedures for the issuance of SMEs to achieve the best facilities and tax and tax incentives that can be provided to these projects either directly or indirectly, through provision of facilities and incentives for projects that support the sector.
She stressed that the state is working with different authorities to provide all kinds of support and provide other non-financial services necessary for this business, including marketing, logistics and technical services, and provide training for human cadres rehabilitation, promising the role of the Project Development Agency and its significant activity in this area, By Youngsters is represented in the 2030 Pioneer Project, which is supervised by the Ministry of Planning, Monitoring and Administrative Reform.
The government is also trying to encourage all programs and initiatives supporting SME development efforts by expanding the development of labor-intensive industrial complexes such as Damietta Furniture City, Rubiky Leather City and Mirgham Plastic Industries, as well as supporting the export orientation of small businesses. Official sector in the formal sector.
Al-Sa said that the Central Government Agency for Public Mobility and Statistics (CAPMAS) will begin implementing the Fifth Economic Census in Egypt from November 2009. The results are expected to be published in October 2019. The census is the first in the electronic system in Egypt, it aims to provide detailed information about MSME, as well as providing data on the informal sector in egypt.