MSME sector accounts for 80% of Egypt’s economy: Trade minister

Doaa A.Moneim , Wednesday 23 Feb 2022

The micro, small and medium-sized enterprises (MSMEs) sector represents over 80 percent of Egypt’s economy, which is why the government is keen on strengthening cooperation with international partners on development programs in this regard, said Minister of Trade and Industry and the Executive Director of Micro, Small and Medium-Sized Enterprises Development Agency (MSMEDA) Nevine Gamea.

Gamea made her comments during a meeting held on Tuesday at the trade ministry’s headquarters with United Nations Development Program (UNDP) Resident Representative in Egypt Alessandro Fracassetti.

During the meeting, Gamea told Fracassetti that Egypt has taken large strides on economic reform and institutional development and this has contributed to improving the status of the economy.

Gamea also highlighted the close cooperation with all UN organisations in implementing numerous development programs and channelling technical support to MSMEs over the past 30 years.

The meeting tackled the importance of enhancing ongoing partnership between MSMEDA and the UNDP, especially after the signing of a new cooperation agreement last September.

“This agreement targets the upgrading of MSMEDA's institutional and operational capacities and also empowers it to launch its new services,” according to the minister.

Gamea emphasised that the outcomes of a survey conducted by MSMEDA in cooperation with UNDP to monitor the impact and repercussions of COVID-19 on the MSME sector have been examined. The survey included 5,500 enterprises, and recommendations have been made to help counter such challenges in the near future.

For his part, Fracassetti pointed out that economic development and export-oriented, knowledge-based industries have pivotal importance.

“The MSME sector plays another important role in supporting the Egyptian economy. MSMEDA plays a significant role in promoting these enterprises and others pertaining to women’s empowerment, job-creation and digitalisation,” he added.

Additionally, Fracassetti asserted the significance of the green economy and green projects, namely the National Project for Solar Cell Systems, which has been awarded the prize of the British Energy Institute as the best project presented globally to reduce greenhouse gases for 2020.

This project aims to support the spread of small solar stations and is being implemented by IMC jointly with UNDP and funded by the Global Environment Facility.