|Approval Date||20 Feb 2013|
|Signature Date||20 Feb 2013|
|Sovereign / Non-Sovereign||Sovereign|
|Sector||Agriculture and Rural Development|
|DAC Sector Code||32161|
MSMEs are important drivers for poverty reduction and job creation, as they represent over 99.7% of all private non-agricultural enterprises in Egypt, account for 85% of non-agricultural private sector employment, and almost 40% of total employment. MSMEs have been the primary absorber of labor force entrants over the past years and contribute significantly to employment generation, albeit mostly in the informal sector. MSMEs are also the major provider of products and services for local markets, particularly for lower-income segments with limited purchasing power. It is widely believed that the MSMEs and the informal sector at large have acted as a solid buffer, attenuating the impact of the crisis on Egyptians, particularly the vulnerable groups. Despite its potential, the MSME sector faces a multiplicity of constraints that hinder its performance and affects the outcome of its role as an economic catalyst. In addition to the well-known financial constraints, MSMEs face a myriad of non-financial obstacles such as obtaining the required inputs, producing and marketing a competitive product, obtaining knowledge on the latest know-how and on market requirements, in addition to an inadequate institutional, legal and regulatory environment.
The principal objectives of this project are to: create an overall enabling environment for Micro, Small, and Medium Enterprises (MSMEs) operating out of organic clusters and increase their contribution towards economic growth and employment.
The main beneficiaries of the project are: The Government of the Arab Republic of Egypt, the Social Fund for Development (SFD), the Micro, Small, and Medium Enterprises (MSMEs).
MENA Transition Fund
Social Fund for Development (SFD)
|Last Update||20 Oct 2020|
|Name||Gehane El Sokkary|