The total number of loans provided by Tanmeyah reached EGP 450m by August for small and medium enterprises (SMEs), with a EGP 750m target by the end of 2014.
Tanmeyah aims to provide loans ranging from EGP30,000 to EGP 200,000 for SMEs, according to Amro Abu El-Eish, president of Tanmeyah.
Abu El-Eish said the company aims to support microenterprises during the coming months, adding that Tanmeyah has succeeded in shortening the time period for obtaining a loan to five days.
Abu El-Eish said: “SMEs need to support the banking system, whether public or private, in the context of the state’s desire to increase growth.”
While speaking at the Euromoney conference, Finance Minister Hany Kadry Dimian said the government is targeting increased growth of 3% during the current 2014/2015 fiscal year. He added that the government is also targeting up to 5.6% in growth over the next three years.
Abu El-Eish sees that SMEs need organisation, while the banking system can be supporting them during the current period.
He said that a small percentage of bank loans go to SMEs, which contributes to the inability of that sector to join the formal economy.
Abu El-Eish added that the informal economy suffers from randomness in data due to the lack of accurate statistics to illustrate to the banking system how to deal with it.
According to government estimates, the informal economy represents 40% to 45% of the formal economy.
The Minister of Industry and Foreign Trade Mounir Fakhry Abdel Nour, said in a previous press statement to Daily News Egypt that he would work on the implementation of a law incorporating the informal economy into the formal one .