Cairo - Mubasher: The Saudi Arabia Grant Management Committee concluded its meeting in Cairo, offering a $200 million grant earmarked for contributing to financing micro, small, and medium enterprises (MSMEs), according to a statement on Sunday.
Egypt's Minister of International Cooperation Rania El-Mashat announced the committee’s decision that Banque Misr would receive EGP 70 million from the grant to finance machinery and equipment for factories, and special transportation services for medical equipment for labs and hospitals; the Industrial Development Bank (IDB) would benefit from EGP 100 million to finance two clean energy programs and to purchase new machines and equipment; and Banque du Caire will also benefit from EGP 100 million dedicated to financing micro-enterprises.
El-Mashat welcomed the committee members to Cairo and expressed her commitment to the committee’s work during the COVID-19 pandemic that ensured the achievement of several goals and development plans by supporting the MSMEs.
The minister stressed that the committee’s decision to provide the aforementioned funds comes within the framework of the grant’s overall vision; to strengthen the concessional financing mechanisms in support of MSMEs, create job opportunities, and diversify the sectors that the banks aid. The development financing will benefit about 7,000 people in various economic activities.
El-Mashat also shared that the Saudi Grant’s website was also launched during the committee meetings, coinciding with the MSMEs Day on 27 June.
The committee meetings were chaired by Ghadeer Hegazi, Assistant to the Minister for the Arab Funds and the head of the committee from the Egyptian side; Hassan Al Attas, the head of the committee from the Saudi side; along with other representatives from the Egyptian side including Sherin Taha, Assistant to the Minister for the International Finance Cooperation and Economic Studies; Randa Hamza, Assistant to the Minister for Strategic Planning and Monitoring; and the Saudi side including Khaled Al Ghanim and Nawaf Al Sanid.
During the meeting, the committee discussed several new financing programs presented to the committee by Banque Misr to finance the mid-cap program, which includes financing capital for companies and factories, financing machinery, and special transportation services for equipment for medical services that include labs and hospitals. The Banque du Caire will also be financing micro-enterprises in the production, industrial, commercial, and services sectors; alongside self-employed professionals. This is in addition to the financing programs that were previously submitted by the committee such as IDB’s proposal to finance two clear energy programs and to purchase new machinery.
The Saudi grant has funded 2,500 MSMEs so far through financial intermediaries across 27 governorates; these projects have contributed to creating more than 12,000 job opportunities. The committee aims during the coming period to expand and reach the largest number of beneficiaries, such as project owners.
The National Bank of Egypt (NBE), the Agricultural Bank of Egypt (ABE), and the Micro, Small and Medium Enterprises Development Agency (MSMEDA) are the most prominent intermediaries through which the development financing is provided. There are as well beneficiaries of the direct grant financing; most notably EFG Hermes Financial Leasing Company, Enma Financial Leasing Company, Plus Leasing Company, ValU for Installment Sale Services, Global Leasing Company, UE Financial Leasing Company, ABE, and Contact Leasing.
