The National Bank of Egypt (NBE) and the Micro, Small, and Medium Enterprises Development Agency (MSMEDA) have signed a memorandum of understanding to enhance support for Egypt’s SME sector. This collaboration aims to provide comprehensive financial and technical resources to small and medium-sized enterprises, with a specific focus on industrial, productive, and heritage craft businesses.
Quick Facts
- Partnership between Egypt’s largest bank and its SME agency.
- Focus on industrial, productive, and heritage craft sectors.
- Provides financing, technical, and marketing support to SMEs.
- Targets underserved areas like Upper Egypt and border governorates.
A Strategic Push for Economic Growth
The agreement brings together two of Egypt’s key financial and developmental institutions to create a more supportive environment for business growth. Mohamed El Etreby, CEO of the National Bank of Egypt, emphasized that the partnership is an extension of the bank’s national role in supporting the Egyptian economy.
“The SME sector is a top priority for us, as it’s one of the main pillars for achieving comprehensive development,” El Etreby stated. He added that the collaboration with MSMEDA creates an effective model for integrating the efforts of financial and developmental bodies, which will help increase the SME sector’s contribution to the national GDP and create sustainable jobs.
Targeting Underserved Regions and Key Sectors
The initiative will direct significant resources towards often overlooked regions. Basil Rahmy, CEO of MSMEDA, highlighted the importance of the partnership in strengthening support for projects, particularly in Upper Egypt and border governorates.
“This cooperation aligns with the state’s direction to increase the contribution of MSMEs to the national economy,” Rahmy explained. He noted that the partnership will concentrate on industrial and productive sectors as well as the heritage and handicraft sector, citing its potential for global market access and significant job creation. This aligns with the National Strategy for Handicrafts launched by Prime Minister Dr. Mostafa Madbouly.
The two entities will also exchange expertise on mechanisms for supporting entrepreneurship and promoting financial inclusion.
Integrated Support for Entrepreneurs
The collaboration is designed to provide entrepreneurs with a full spectrum of services. Soha El-Turky, Deputy CEO of NBE, confirmed that the MoU is part of the bank’s strategy to back the SME sector as a primary driver of economic growth. NBE aims to offer integrated financing solutions and innovative banking services tailored to various market sectors.
Nader Saad, Head of SMEs at NBE, added that the partnership combines the bank’s financial and banking expertise with MSMEDA’s technical and developmental services. This integrated system will support initiatives related to export promotion, franchising, women’s economic empowerment, and value chain financing, especially in the food industry.
The agreement also includes plans for joint promotional campaigns to cultivate a culture of entrepreneurship and the potential installation of NBE ATMs at MSMEDA branches to improve financial access for clients.
About the National Bank of Egypt
The National Bank of Egypt (NBE) is the oldest and largest commercial bank in Egypt. Established in 1898, it operates as a key financial institution in the country, providing a wide range of corporate and retail banking services and playing a significant role in Egypt’s economic development.
About MSMEDA
The Micro, Small, and Medium Enterprises Development Agency (MSMEDA) is the primary governmental body in Egypt responsible for developing and supporting the MSME sector. It provides a comprehensive suite of services, including financing, training, and technical assistance, to foster entrepreneurship and stimulate economic growth.
Source: Masrawy
