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Doaa Moneim – Ahram Online
HSBC Egypt has launched on Tuesday a new fund called ‘Forsa Fund’ (opportunity finance) worth £E3 Billion, to support Egyptian small and medium size enterprises (SMEs) in the industrial and service sectors.
“The fund is designed to help strong Egyptian businesses with bold visions to enter new trade markets, re-engineer their supply chains, innovate, and play an active part in supporting the ongoing growth, modernisation and diversification of the country’s economy. SMEs are a vital engine of growth for economies”, said HSBC Egypt’s Deputy Chairman and CEO Todd Wilcox.
According to HSBC’s Navigator 2021 report, business leaders are expecting double-digit revenue growth in 2022, offsetting damage from short-term supply chain disruption by pushing into new markets to reach more customers.
“Approximately 74% of businesses in Egypt increased the number of suppliers they are working with for greater diversification. Egyptian businesses are more likely than their international peers to consider expansion into new markets, with 33% noting this as a priority”, according to the report.
“SMEs are the engines of global economic growth and employment globally, generating about 33% of the world’s GDP, and including 45% of the workforce in high-income countries. In developing countries, the sector contributes with over 60% of GDP and 70% of employment, and the rise in the number of SMEs has been crucial to economic diversification and resilience, particularly in countries vulnerable to commodity price fluctuations”, a recent report published by the Oxford Business Group noted.
The Egyptian parliament has approved a new law introducing incentives for SMEs, including extending more financial and non-financial incentives for micro, small and medium size enterprises (MSMEs) with simpler tax collection systems.
