CAIRO – 1 January 2025: The Micro, Small, and Medium Enterprise Development Agency (MSMEDA) has announced a significant investment of LE 6 billion to support Egypt's micro, small, and medium enterprise (MSME) sector in 2024. This marks a 13% increase from the previous year, highlighting the agency's ongoing commitment to driving economic growth and job creation.
CEO of MSMEDA, Bassel Rahmy, shared the agency's ambitious plans for 2025, including a proposal to double the funding for MSMEs. The focus will be on prioritizing productive and industrial projects, as well as expanding financial support to underserved regions, particularly in Upper Egypt and border areas. This move aims to foster greater economic inclusivity across the country.
In 2024, MSMEDA significantly broadened its financing efforts, extending microfinance and small enterprise programs nationwide. The agency forged 13 agreements with prominent companies such as Aman, Enmaa, and Credit, alongside partnerships with the National Bank of Egypt and the United Bank. This collaboration resulted in the disbursement of LE 878 million. Additionally, MSMEDA secured 41 agreements with microfinance NGOs like Tanmeyah and Khair, contributing LE 900 million to support microenterprises.
The agency has also been instrumental in implementing key provisions of the MSME Law No. 152/2020. Working closely with government bodies, ministries, and the parliamentary MSME Committee, MSMEDA successfully pushed for reforms, including a three-year extension for informal enterprises to formalize their status. Furthermore, MSMEDA negotiated with the National Organization for Social Insurance to exempt regularized enterprises from retroactive contributions and worked with the Ministry of Finance to offer tax incentives to small business owners.
Rahmy emphasized MSMEDA’s success in facilitating business formalization, with over 13,000 classification certificates and 12,000 benefit certificates issued through its one-stop shops. In addition, more than 2,600 temporary licenses were granted, helping informal businesses transition into the formal economy.
A key component of MSMEDA’s efforts to support entrepreneurship was the organization of 600 awareness seminars in 2024, benefiting 40,000 young Egyptians. Over 10,000 individuals also participated in training programs covering administrative, technical, and marketing skills, essential for launching or expanding businesses. Furthermore, the agency launched a new export unit aimed at helping small exporters access international markets, resulting in a significant increase in sales through government contracts and agreements with African and European markets.
In its efforts to nurture innovation, MSMEDA also contributed to venture capital funds supporting startups, including Capital Ventures 2 with USD 2.5 million and Foundation Ventures with USD 3 million. This investment underscores the agency’s commitment to fostering entrepreneurship and innovation.
On the community development front, MSMEDA partnered with international donors to fund projects in rural villages and governorates, totaling LE 222 million. These initiatives created 350,000 workdays and provided employment for 2,280 young Egyptians. The agency also played a key role in the presidential “Decent Life” initiative, financing 18,500 projects worth LE 1.5 billion, creating 62,000 job opportunities across the country.
In addition, MSMEDA supported MSMEs through marketing initiatives, organizing 139 local and international exhibitions in 2024. One of the highlights was the sixth edition of the “Our Heritage” exhibition, which featured participation from various Arab and foreign countries.
Reflecting on the agency's accomplishments in 2024, Rahmy credited MSMEDA’s progress to the continued support and guidance of Prime Minister Mostafa Madbouly, whose leadership has enabled the agency to align with Egypt’s developmental goals. Looking ahead to 2025, MSMEDA plans to further expand its impact, empowering more entrepreneurs and contributing to Egypt’s overall economic growth.
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