‘Mashrou’ak’ initiative provides EGP 24.5bn loans to 197,500 projects: Local Development Minister

Daily News Egypt
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Hisham Amna, Minister of Local Development, stressed the ministry’s constant endeavor to encourage a culture of self-employment and entrepreneurship among youth and women.

The national programme for community, human, and local development “Mashrou’ak” (Your Project) has implemented 197,575 micro, small and medium enterprises (MSMEs) nationwide, with loans approaching EGP 24.5bn, and provided 1.7 million jobs.

This comes in light of the implementation of the mandates of the political leadership to encourage self-employment, through SMEs, and in implementation of the vision of the Ministry of Local Development to support economic development in the governorates as one of the objectives of Egypt’s 2030 strategy.

Amna directed the executive bodies in the governorates to continuously improve the business environment that supports MSMEs, and encourage entrepreneurs, to enhance and continuity of opportunities for growth, success and competitiveness for all projects and provide facilities and full support to their owners. He shed light on the facilitation committees that were formed at the level of all governorates headed by the secretaries-general to solve any administrative problems, and follow up the implementation of projects, their future development plans, and marketing mechanisms for their products with the aim of supporting the projects’ capacity and bringing about community development in all governorates.

The follow-up report of Mashrou’ak indicated that Minya governorate accounted for 22,300 projects with loans amounting to EGP 2.7bn, and Sohag by 21,000 projects with loans amounting to EGP 2.6bn, while the number of projects implemented in Beheira reached 18,400 projects. With loans amounting to EGP 1.8bn, Daqahleya implemented 16,300 projects with EGP 1.8bn loans, and Sharqeya implemented 15,700 projects with EGP 2.4bn, while the number of projects implemented in Beni Suef reached EGP 15,500 with EGP 1.7bn.

Amna explained that coordination has been made with the banks participating in “Mashrou’ak”, namely Banque Misr, the National Bank of Egypt (NBE), Banque du Caire, AlexBank, the Housing and Development Bank (HDB), and the Agricultural Bank of Egypt (ABE), to increase lending rates, provide non-traditional financing services. Moreover, it was agreed with the Micro, Small, and Medium Enterprise Development Agency (MSMEDA) to train employees and workers in the program and develop their skills. Coordination also took place with the Industrial Development Authority (IDA) in extracting licenses and industrial records.

He added that SMEs are a strategic goal that the ministry adopts, because of their vital role in the economic development of districts, cities, neighborhoods and villages, especially the implementation of “Decent Life” initiative to enhance development, reduce unemployment, improve incomes and reduce poverty. He explained that Mashrou’ak programme comes within the framework of the CBE’s initiative to encourage MSMEs, which provides loans at 5% interest rate.

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