Sherif Samy, former chairman of Egyptian Financial Supervisory Authority (EFSA) - File Photo
CAIRO - 19 November 2017: Establishing investment funds for micro-financing is strongly needed in Egypt to attract more social investments, Former Chairman of the Egyptian Financial Supervisory Authority Sherif Samy said on Saturday.
“These kinds of investment funds are very important for micro-financing, which is successfully applied internationally,” he added.
He noted that the application of such funds requires a simple modification to the executive regulations of the capital market law thereby it would not permit granting loans directly to the clients, but via a mechanism similar to securitization.
The new manner of micro-financing will save funds for companies and social organizations.
The news coincides with Samy’s participation in the 2017 entrepreneurship summit organized by international associations in cooperation with the Canadian embassy, along with a number of project owners attending the event.
Samy affirmed the significance of alerting small project owners to the different ways of financing, since banks should no longer be perceived as the only way to do so.
Companies can get financed by IPO programs via stock markets, since the Nile Bourse enables SMEs to raise their capital, Samy noted, adding that entrepreneurs should go aim for other ways to collect funds for their projects, particularly in the early phases of their projects.
Varied means that entrepreneurs can depend on include financial leasing, factoring, and venture capital funds.