A new small- and medium-sized enterprise (SME) law has come into effect in Egypt after its executive regulations were issued.
As part of the law’s introduction, Nevine Gamea, Minister of Trade and Industry and Executive Director of the Micro, Small, and Medium Enterprises Development Authority (MSMEDA) held a meeting with leaders from the authority.
During the meeting, Gamea laid down the guidelines and work mechanisms that the authority will implement during the coming period. This follows the issuance of the executive regulations of the Enterprise Development Law 152 of 2020.
During the meeting, Gamea explained that for the first time, a law will be issued that includes various services and facilities that encourage citizens and youth to embrace self-employment. It also aims to encourage them to participate positively in the development efforts that the state is currently undertaking.
The minister indicated that Egypt’s political leadership is working to provide all possible support to the small enterprises sector, by providing the appropriate legislative environment. This looks to stimulate this sector to play a greater role in advancing the economy and development and to help entrepreneurs.
In turn, this will work to ensure that they can achieve their hopes and aspirations to establish new projects or to expand their existing projects.
She emphasised the importance of MSMEDA’s cooperation and continuous coordination with all ministries and agencies that participated in the issuance of this law.
This is to ensure that all the facilities and incentives stipulated in it are activated and provided to citizens and project owners, through simple mechanisms to ensure that everyone benefits from these services.
During the meeting, Gamea said that the agency will start implementing the first steps to activate the law. This will see the issuance of a certificate to the owners of existing and licensed projects, specifying the type of project, the size of its funding, and all its data.
Gamea invited the owners of existing projects to apply for this certificate through the agency’s branches across Egypt. This can also be done via the MSMEDA’s website, www.msmeda.org.eg, so that they could benefit from the new services provided by the law.
The minister confirmed that existing project owners obtaining the project classification certificate will allow them to start enjoying an integrated package of services provided by the various state agencies.
These new services will be announced during the coming period, as soon as they are applied and come into effect. They will be applied to help project owners operating in the informal sector, so that: they can transfer to the formal sector; or benefit from the tax facilities specified by the law for owners of small enterprises; or the marketing and training support provided therein.