Al-Mashat: SFD's Projects in Egypt Reached over 1.5 Bln in 2021

The Minister of International Cooperation Rania A. Al-Mashat stated that the development financing for Small and Medium-sized Enterprises (SMEs) through the Saudi Fund for Development (SFD) has reached over EGP 1.5 billion, directed to financing 2,549 projects by the end of 2021, and has contributed in providing over 12,844 job opportunities across Egypt, through soft development financing that is provided to intermediaries from national agencies, banks, and companies. Hence, development financing was provided to 74 medium-sized projects, 2,072 small-sized projects, and 402 micro-sized projects.

The Saudi Arabia Grant Management Committee offered a $200 million grant for financing Micro, Small, and Medium-sized Enterprises (MSMEs), through which soft development funds are provided for intermediaries from banks and companies, for re-lending SMEs, and start-ups.

For re-lending to small and medium enterprises and start-ups. The SFD is administered through a joint committee that includes representatives from both the Egyptian and Saudi sides.

The SFD comes within the framework of the international partnerships held by the Government of Egypt, through the Ministry of International Cooperation, to support Egypt’s Vision 2030, and to advance Egypt’s economic relations with bilateral and multilateral development partners, pushing forward the United Nations 2030 Sustainable Development Goals (SDGs). The SFD also works to support national efforts to bridge the gap between financial institutions and Small and Medium-sized Enterprises (SMEs) and to facilitate their access to development financing.

Minister Al-Mashat stated that in 2021, 10 intermediaries benefited from the SFD; namely the National Bank of Egypt; the Micro, Small & Medium Enterprise Development Agency (MSMEDA); the Agricultural Bank of Egypt (ABE); EFG Hermes; Enmaa Finance Company; Plus Leasing; ValU' for Installment Sale Services; Global Leasing Company (GLC); UE Finance; and

Contact Leasing.

The development financing provided was distributed across several high-priority sectors, as 897 projects were financed; 12 projects in the solar energy sector, 689 projects in the agriculture sector, 323 projects in the industrial sector, 88 projects in the healthcare sector, and 532 projects in the business sector. These funds have benefited projects across the 27 governorates.

The development financing made available through the SFD has pushed forward the achievement of the UN SDGs; namely SDG1: No Poverty; SDG 3: Good Health and Well-Being; SDG 5: Gender Equality; SDG 7: Affordable and Clean Energy; SDG 9: Industry, Innovation and Infrastructure; and SDG 10: Reducing Inequalities.

In 2021, the Egyptian-Saudi Joint Committee for the development of Micro, Small and Medium-sized Enterprises (MSMEs) has launched a website to present its efforts in financing the MSMEs through the Kingdom of Saudi Arabia’s grant that is worth $200 million dedicated to support Egypt’s efforts to close the gap between financial institutions and MSMEs, and to facilitate their access to finance through financial intermediaries. The website also provides a clear structure for intermediaries who require funding and would want to benefit from the grant through applying to the committee.