Egypt's SME Agency: Bringing Thousands of Businesses into the Formal Economy with Financial Inclusion

The Micro, Small and Medium Enterprises Development Agency (MSMEDA) took part in the Arab Financial Inclusion Day conference. This event was organized by the Union of Arab Banks and sponsored by the Central Bank of Egypt, under the theme: “From Financial Inclusion to Comprehensive Growth: Future Prospects and Policies.” Basil Rahmy, MSMEDA’s CEO, emphasized the agency's commitment to broadening financial inclusion. They aim to integrate thousands of micro and small businesses into the formal system by simplifying the business environment and offering flexible procedures, along with tax and legislative incentives. These measures encourage businesses to move from the informal to the formal economy without complex burdens. Rahmy explained that these efforts align with MSMEDA's plans to carry out directives from Dr. Mostafa Madbouly, the Prime Minister and Chairman of MSMEDA's Board. These directives focus on boosting financial inclusion and digital transformation. He noted that this issue has become a key requirement for achieving balanced development and ensuring fair access to funding opportunities. Financial Inclusion and Digitalization Policies He pointed out that MSMEDA runs various programs to raise awareness about financial inclusion and digitalization policies, and their importance in developing projects. Additionally, they empower business owners to benefit from supportive laws and regulations, and use financial technology (FinTech) as a main tool to expand the base of beneficiaries and speed up economic integration. The Legislative Framework Rahmy added that the state and the banking sector have taken important legislative steps to support financial inclusion. These include the Central Bank's financial inclusion strategy, Law No. 194 of 2020 for the Central Bank and Banking Sector, Law No. 18 of 2019 regulating the use of non-cash payment methods, and Law No. 151 of 2020 for personal data protection. He stressed that this legislative framework is a fundamental pillar for achieving a stronger economy and sustainable development. Rahmy concluded his statements by reaffirming the ongoing cooperation between MSMEDA and all relevant parties, including banks, ministries, and authorities. This collaboration aims to implement financial inclusion policies and national initiatives, and to build an integrated system for sustainable financial, digital, and technological inclusion. This will support the path of sustainable development and serve national aspirations.