Egypt is putting real money behind its belief in small business. Starting July 1, the government is unlocking EGP 5 B USD 100 M for micro, small, and medium-sized enterprises MSMEs, marking the largest support package of its kind to date.
The numbers explain the urgency. With a population of over 106 million, the largest in the Arab world, Egypt is grappling with high youth unemployment, a growing informal economy, and a widening gap between talent and opportunity.
More than 60 of Egyptians are under 30, and around 700,000 new job seekers enter the market every year, according to Egypt's Central Agency for Public Mobilisation and Statistics CAPMAS. But only a fraction find stable employment, especially in the formal sector.
Micro, small, and medium enterprises are a capable part of Egypt's economy that could cater to this gap, but remain largely underfunded. This largely informal sector makes up 90 of Egypts private sector, produces EGP 1.2 T USD 24 B in value, and employs 75 of the workforce. This is where the new funding will find leverage.
The new financing package, part of the FY2025/26 state budget, comes through a cooperation protocol signed by Finance Minister Ahmed Kouchouk and MSMEDA CEO Bassel Rahmy as reported by Daily News Egypt .