In a strategic move to bolster Egypt’s Micro, Small, and Medium Enterprises (MSME) sector, the Micro, Small, and Medium Enterprises Development Agency (MSMEDA) has renewed its partnership with the United Nations Development Programme (UNDP). This collaboration, pivotal to Egypt’s economic future, aligns with the government’s vision of enhancing MSMEs’ contribution to national growth, innovation, and job creation.
Speaking during a high-level meeting with UNDP representatives, Basel Rahmy, CEO of MSMEDA, reiterated the agency’s commitment to advancing MSMEs through strategic partnerships, knowledge exchange, and adoption of best international practices. Rahmy emphasized that UNDP has been a key strategic partner since the inception of MSMEDA, providing invaluable expertise and support in areas such as digital transformation, financial inclusion, and capacity-building.
“UNDP’s partnership with MSMEDA has been instrumental in driving sustainable economic growth by developing MSMEs across Egypt,” Rahmy said. “We are committed to further enhancing our efforts in collaboration with international development partners to achieve Egypt’s Vision 2030 and the United Nations Sustainable Development Goals (SDGs).”
A Shared Vision for Economic Growth
This renewed collaboration underscores the critical role of MSMEs in Egypt’s economic structure. Representing 90% of the private sector and contributing 43% to the national GDP, MSMEs are a vital engine of economic development, innovation, and job creation. The partnership will continue to focus on key areas including improving the business environment, digitalizing MSMEs, and promoting green development.
A significant aspect of MSMEDA’s ongoing efforts is the implementation of Law 152/2020, which aims to formalize the MSME sector. Rahmy highlighted the agency’s efforts to help informal businesses transition into the formal economy, offering them access to enterprise classification privileges and a host of legal benefits designed to foster growth and sustainability.
“By formalizing informal MSMEs, we are not just providing access to financial services but creating a more resilient, competitive business environment that supports Egypt’s long-term economic transformation,” Rahmy added.
UNDP’s Commitment to Innovation and Sustainability
Abeer Shakweer, Assistant Resident Representative and Leader of the Inclusive Growth and Innovation Team at UNDP Egypt, also weighed in on the partnership’s impact. Shakweer praised MSMEDA’s achievements in 2024 and its vision for the future, especially its focus on creating a conducive environment for entrepreneurship and fostering innovation.
“MSMEDA’s dedication to empowering MSMEs and enhancing the entrepreneurial ecosystem has been commendable,” Shakweer said. “The UNDP is committed to continuing its technical support to MSMEDA, particularly in strengthening the green economy, advancing digitalization, and promoting innovation. These areas are critical for driving Egypt’s economic growth and achieving the SDGs.”
She also highlighted the importance of fostering a business climate that is inclusive and supportive of MSMEs, with a focus on improving access to both financial and non-financial services. This vision aligns with Egypt’s broader goal of developing a sustainable, innovation-driven economy.
A Multi-Stakeholder Approach to Sustainable Growth
The collaboration between MSMEDA, UNDP, and other stakeholders, including Egypt’s Ministry of Planning, Economic Development, and International Cooperation, is part of a broader effort to enhance Egypt’s MSME ecosystem. Rahmy noted that MSMEDA’s work is supported by a wide range of partners, both local and international, ensuring the agency’s continued success in scaling up its operations and impact.
UNDP’s ongoing participation in initiatives such as the 2024 Turathna Exhibition, which showcased Egypt’s rich heritage of handicrafts, is a testament to its strategic support for Egypt’s productive sectors, particularly in remote areas. These efforts aim to preserve and promote Egypt’s cultural legacy while fostering economic development in underdeveloped regions.
Ghimar Deeb, UNDP’s Deputy Resident Representative in Egypt, emphasized the broader significance of this partnership. “The development of MSMEs is essential for driving entrepreneurship, creating sustainable jobs, and fostering innovation. Our continued collaboration with MSMEDA will help enhance MSMEs’ competitiveness, ensuring their long-term sustainability and contribution to Egypt’s economic development,” Deeb stated.
The collaboration between MSMEDA and UNDP is a vital component of Egypt’s Vision 2030, which seeks to build a more diversified, competitive, and sustainable economy. By empowering MSMEs and fostering an innovation-driven ecosystem, Egypt is laying the groundwork for a future that is both economically vibrant and inclusive.
