Financing small projects in Egypt: 5 billion pounds to support youth and entrepreneurs
Financing small projects in Egypt.. 5 billion pounds to support youth and entrepreneurs
With the growing need for economic solutions that meet the aspirations of young people and enhance stable employment opportunities, the importance of supporting entrepreneurship and financing small projects increases as it is an essential tool for stimulating growth and expanding the circle of economic activity. Egypt has paid great attention to this trend, as the state seeks to provide support in all its forms for these projects, as part of its plans to achieve more just and comprehensive economic development.
Technical support and tax facilities to sustain entrepreneurship
Within the framework of the state’s support for youth and promoting entrepreneurship, a cooperation protocol was signed between the Ministry of Finance and the Micro, Small and Medium Enterprises Development Agency. Mr. Ahmed Kajouk, Minister of Finance, and Mr. Basil Rahmi, CEO of the Agency, witnessed the signing ceremony, which represents a practical step towards building a deeper and more influential institutional partnership. This cooperation comes within the framework of financial policies aimed at stimulating the local economy by supportingsmall projects, and providing easy financing tools.
In this context, the Minister of Finance announced the allocation of 5 billion pounds within the new budget to support these projects, which is the largest direct financing package of its kind, aiming to provide effective support and soft financing that enables young people to enter the market and succeed in various productive fields, thus enhancing economic growth at the local level.
In preparation for expanding the scope of this initiative, the focus is on value-added sectors, in order to achieve the state’s goals in raising the efficiency of the economy and enhancing its flexibility, which opens the door to new steps that go beyond financing towards building an environment that encourages initiative and production.
Cooperation does not stop at the limits of providing financing, but also includes providing the necessary tax facilities, technical support, and training, as the Minister of Finance indicated that the first group newly joined to the simplified and unified tax system will benefit from distinctive, low-cost financing during the current fiscal year. This includes financing a number of initiatives that support the beneficiaries of the tax facilities, and for entrepreneurship, in addition to projects aimed at deepening the local component in the industrial, productive, and export sectors of interest. Priority.
The state is adopting a new trend based on providing easy financing models for youth, in parallel with building a legislative and regulatory environment that responds to the needs of small projects in both cities and rural areas. This trend aims to integrate these projects into the formal market and reduce default rates in their early years.
Youth at the heart of new policies
For his part, Mr. Basil Rahmi, CEO of the agency, stressed that youth are at the forefront of this new strategy, as they are the main driver of any real economic development, and he explained that a large portion of the new funds will be directed to projects led by young people who have realistic, implementable ideas, especially in the agricultural, industrial, andservice sectors.
In addition to funding, these young people will be supported by providing opportunities for training and technical accompaniment, helping them develop business plans, and linking them with marketing agencies and logistical tools that will help them enter markets efficiently. This reflects a deeper understanding of the concept of economic empowerment, which is not based only on money, but rather on building real, long-term capabilities.
Partnership is a tool to expand the impact of sustainable finance
With increasing awareness of the role of entrepreneurship in enhancing economic flexibility, this initiative is expected to contribute to changing society’s view of self-employment and enhancing the culture of production, as the state seeks, through this institutional partnership, to build a comprehensive financing model that does not depend only on lending, but rather enhances the local business climate by coordinating efforts between government agencies, the private sector, and financing institutions.
This trend towards institutional partnership is a turning point in the state’s understanding of the nature of the desired economic transformation. Coordination between the concerned parties is not limited to sharing resources, but rather includes exchanging experiences, directing funds towards priority sectors, and building a system of support services that take into account the needs of entrepreneurs at the different stages of their projects. Through this integration, the chances of success are multiplied, and financing becomes a real tool for change.
In conclusion, Egypt’s move towards supporting small projects is a qualitative shift in the path of economic development, as financing is no longer a goal in itself, but rather a tool within an integrated system based on a flexible legislative environment, technical and training support, and tax facilitations that respond to the needs of youth and entrepreneurs. Allocating 5 billion pounds for this purpose reflects a clear political will to build a more comprehensive and just economy by empowering all members of society and stimulating local production in accordance with the Sustainable Development Goals (SDGs).
