OECD and Egypt Launch Major Report to Boost SME and Entrepreneurship Policies
The Organisation for Economic Co-operation and Development (OECD), in collaboration with the Egyptian Ministry of Planning and Economic Development, has launched a comprehensive new report assessing the policies for Small and Medium-sized Enterprises (SMEs) and entrepreneurship in Egypt. Titled "SME and Entrepreneurship Policy in Egypt: Towards a More Inclusive and Innovative Economy," the report provides a detailed roadmap for enhancing the ecosystem.
By the Numbers
>90%: The share of economic activity in Egypt represented by the SME sector.
35: The number of projects included in the broader OECD-Egypt Country Programme.
A Roadmap for a More Inclusive Economy
The report analyzes the current landscape, identifying both opportunities and challenges. A key finding is that while SMEs form the backbone of the economy, most are concentrated in traditional trade and services, with a notable gap in support for innovative, tech-driven startups. The document aims to align Egypt's economic policies with the goals of Egypt Vision 2030 and its structural reform program.
Key Recommendations for Ecosystem Growth
To foster a more innovative and inclusive environment, the OECD report puts forward several key recommendations for the Egyptian government:
Develop a national annual database to track the performance of SMEs.
Implement a "Small Business Impact Test" to assess the effect of any new legislation on smaller companies.
Create a national digital transformation strategy for SMEs, including tax incentives.
Strengthen the role of incubators and accelerators by establishing national accreditation standards.
Enhance support for women's entrepreneurship in collaboration with the National Council for Women.
Expand the role of the Credit Guarantee Company (CGC) to increase financing for micro-enterprises.
Leadership on Implementing the Vision
Egyptian officials have affirmed their commitment to acting on the report's findings. H.E. Dr. Rania Al-Mashat, Minister of Planning, emphasized the report's importance in building a competitive, knowledge-based economy. Basil Rahmi, CEO of the Micro, Small, and Medium Enterprises Development Agency (MSMEDA), stated that his agency will work to update the national SME strategy and implement the recommendations in coordination with local and international partners, with a focus on digitization and financial inclusion.
Egypt's Growing Role within the OECD
This collaboration is further highlighted by Egypt recently assuming the co-presidency of the OECD-MENA Governance and Competitiveness for Development Initiative for the 2026-2030 period. This leadership role underscores the deepening partnership between Egypt and the OECD.
Looking Ahead
This comprehensive report provides a clear and actionable framework for Egypt. By implementing its evidence-based recommendations, the government and its partners can create a more dynamic, supportive, and competitive environment for the SMEs and startups that are vital to the nation's economic future.
Source: El Taameer