Egyptian SMEs 'need greater financial support'
Small and medium-sized enterprises (SMEs) in Egypt and across the Middle East and North Africa (MENA) are seeing growth limited by constrained access to finance.Small and medium-sized enterprises (SMEs) in Egypt and across the Middle East and North Africa (MENA) are seeing growth limited by constrained access to finance.
Writing for the Huffington Post, President and Chief Executive Officer of CHF International David Weiss noted that SMEs "are the driving force of the economy" in Egypt, but still lack the means to create jobs and expand despite attempts to improve credit across the MENA region.
Such companies make up 90 per cent of total businesses operating in Egypt and account for around 80 per cent of its gross domestic product (GDP), Mr Weiss observed.
He noted investment in small businesses can be "one of the most effective ways" of assisting growth in the region, as a strong private sector will "accelerate more equitable economic growth".
Data from the CIA World Factbook shows Egypt's GDP exceeded five percent last year as exports and infrastructure projects helped it begin to recover from the global financial crisis.
However, this year it is expected to remain below the figure of seven percent seen before the recession took hold.