The Centre for Research and Study at Masters Securities Investment published a research paper on Monday stating that Central Bank of Egypt’s (CBE) programme to support the small and medium enterprises (SMEs) will stimulate economic growth as the sector represents 70–85% of the economic volume.
The CBE decided to stimulate banks by offering financing loans with a maximum interest rate of 5% for SMEs. The Centre for Research and Study at Masters Securities research contended that the SME sector has seen slow economic growth in the last few years as a result of a decline in state interest, the sector’s high operational costs, and impediments to financing.
The research considered SMEs as an engine of growth in the world, generating employment opportunities and increasing state revenue.
The centre also noted that the CBE programme will incentivise banks to invest surpluses capital, tied to a volume of deposits that exceeds EGP 8.1tr, in investments amounting to EGP 200bn.
