Incentives for MSMEs to join formal economy

Egyptian Minister of Planning Hala el-Saeed underlined the government’s keenness to promote micro, small and medium-sized enterprises (MSMEs).

She highlighted government efforts to integrate the informal economy into through several incentives.

These remarks came during a virtual event on the role of business and the financial sector in funding flexible and sustainable Covid-19 recovery. The event was held on the fringes of the United Nations High-level Political Forum on Sustainable Development.

The government offers financial support and tax exemptions to adjust the positions of small ventures within the informal sector, el-Saeed said, adding that a law had been passed offering financial and non-financial incentives for MSMEs and entrepreneurs.

Achieving sustainable development goals and confronting the challenge of global financing, which is considered the major obstacle in the face of the 2030 Agenda, are important, el-Saeed added.

She went on to say that all-out partnerships among the parties concerned, including the private sector, civil society and development partners, at national and international levels will assuredly alleviate the impact of pandemic and promote the exchange of expertise in order to achieve the sustainable development goals.

The Egyptian government has carried out legislative and institutional reforms within the framework of the national reform programme at the social and economic levels, she said.

She outlined Egypt’s efforts to adopt innovative financing methods for realising development and promoting partnership with the private sector in line with the 17 Sustainable Development Goals (SDGs), citing the establishment of the Sovereign Fund of Egypt in 2018 under Egypt Vision 2030.

She referred to a key Egyptian initiative to issue the first national report on pro-development funding by the end of 2021.

She added that the government aims to increase the state’s green investments to 30 percent of its overall investment plan in 2021-2022 and to increase it to 50 percent by 2024-2025.