The fund’s sum is dedicated to on-lending for SMEs.
“The fund is designed to help strong Egyptian businesses with bold visions to enter new trade markets, re-engineer their supply chains, innovate – and to play an active part in supporting the ongoing growth, modernisation and diversification of the country’s economy. SMEs are a vital engine of growth for economies,” said HSBC Egypt’s Deputy Chairman and CEO Todd Wilcox.
According to HSBC’s Navigator 2021 report, business leaders are expecting double-digit revenue growth in 2022, offsetting damage from short-term supply chain disruption by pushing into new markets to reach more customers.
Some 74 percent of businesses in Egypt increased the number of suppliers they are working with for greater diversification, according to the report.
Moreover, Egyptian businesses are more likely than their international peers to consider expansion into new markets, with 33 percent noting this as a priority, according to the report.
“Egypt has always been at the centre of global trade, and in light of the country’s ongoing transformation programme, SMEs need to be ready to capture the opportunities that it brings. Trade finance is our key strength and our global network puts us in a unique position to support the country’s internationally-minded companies with their growth plans,” Wilcox said.
SMEs are the engines of global economic growth and employment globally, generating about 33 percent of the world’s GDP and including 45 percent of the workforce in high-income countries, according to a recent report published by the Oxford Business Group.
In developing countries, the sector contributes with over 60 percent of GDP and 70 percent of employment, and the rise in the number of SMEs has been crucial to economic diversification and resilience, particularly in countries vulnerable to commodity price fluctuations, according to the report.
Egypt’s parliament has approved a new law that introduces incentives for SMEs, including extending more financial and non-financial incentives for micro, small and medium sized enterprises (MSMEs) with simpler tax collection systems.
It also encourages informal SMEs to join the formal sector.
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