Bassel Rahmy, CEO of Egypt’s Micro, Small and Medium Enterprise Development Agency (MSMEDA), announced that the agency has launched a venture capital financing mechanism for startups and innovative companies in partnership with the World Bank Group.

Rahmy revealed that MSMEDA has contributed $50 million to the initiative, with the funds deployed through 15 investment funds. The program has supported around 170 Egyptian startups and helped create nearly 48,000 jobs.

The announcement came during MSMEDA’s participation in the SME Summit organized by Business Bel Araby, which marked the release of a special report examining the opportunities and challenges facing micro, small, and medium-sized enterprises (MSMEs), as well as the importance of encouraging entrepreneurship and self-employment among young people.

On the sidelines of the summit, MSMEDA hosted a dedicated pavilion to introduce young entrepreneurs to the agency’s services and support programs for launching new businesses and expanding existing ventures. Agency officials also participated in workshops highlighting MSMEDA’s financing, technical assistance, and development programs.

MSMEs as a Key Driver of Economic Growth

Rahmy emphasized that MSMEs remain one of the main engines of Egypt’s economic growth and sustainable development due to their ability to create jobs, stimulate local production, and increase the participation of youth and women in economic activity.

He stressed the importance of boosting investment in the sector, particularly amid growing global trends toward financial inclusion and digital transformation, which are creating new opportunities to modernize business models and expand access to financial and non-financial services.

Supporting Entrepreneurship and Innovation

According to Rahmy, MSMEDA continues to provide a supportive environment for industrial, agricultural, commercial, and service-oriented enterprises, while also backing startups, innovative businesses, and entrepreneurs seeking to expand and compete in both domestic and international markets.

He noted that, under directives from Prime Minister Dr. Mostafa Madbouly, MSMEDA joined the Ministerial Group for Entrepreneurship, which was restructured earlier this year under the leadership of Deputy Prime Minister for Economic Affairs Dr. Hussein Issa.

The agency is currently issuing classification certificates for startups, enabling them to benefit from incentives and advantages offered under Egypt’s Startup Charter, launched in February as part of broader efforts to strengthen the country’s innovation ecosystem.

Surge in Financing Activity

Rahmy said MSMEDA continues to develop new financing products tailored to different segments of society and business sectors, particularly productive and industrial projects, through both direct financing and a wide network of partner banks, financial institutions, and lending organizations.

He highlighted that government support has helped drive significant growth in financing volumes directed toward MSMEs. Productive projects accounted for 30% of total financing during 2025.

Financing allocated to industrial projects reached approximately EGP 3 billion between January 2022 and April 2026, reflecting the agency’s focus on supporting value-added production, local manufacturing, and greater domestic content integration.

Expanding Export and Investment Opportunities

Rahmy also underscored MSMEDA’s commitment to export-oriented businesses by providing marketing and export opportunities that have enabled entrepreneurs to secure successful commercial deals.

He added that the agency plans to expand these services further to help Egyptian businesses access international markets and enhance the competitiveness of locally manufactured products.

Looking ahead, MSMEDA will participate in the Egyptian-Saudi International Franchise Exhibition, scheduled for early July under the patronage of the Prime Minister. The event aims to open new investment opportunities for entrepreneurs and promote the adoption of scalable franchise business models based on successful international experiences.

Rahmy concluded by stressing that MSMEDA’s strategy extends beyond increasing the number of MSMEs, focusing instead on developing, qualifying, and strengthening businesses to achieve long-term growth, sustainability, job creation, and broader economic and social development.