FILE – Chief Executive Officer, Managing Director of Alexandria Bank Dante Campioni sign a new protocol on cooperation with Head of IDA, Ahmed Abd el-razek
CAIRO – 23 December 2017: Bank of Alexandria signed a Protocol on Cooperation with Industrial Development Authority (IDA) to finance new micro, SME’s industrial units, the bank said on Saturday in a statement.
“The bank will provide funds for industrial projects inside the zones specified by IDA in different manufacturing fields,” explained the statement.
For IDA, according to the protocol, it has to make lands available and prepare for establishing integrated industrial complexes for the micro, small and medium sized enterprises (SME’s).
IDA, according to the protocol, is also committed to facilitating land allocation and acquiring licenses for eliminating barriers facing investors.
Chief Executive Officer, Managing Director of Alexandria Bank, Dante Campioni, said during the Signing ceremony that the new protocol is in line with the bank’s strategy of supporting SME’s, which is expected to help the sector overcome financial obstacles.
Campioni added that SMEs play a vital role in promoting the Egyptian industry and the economy in general.
Head of IDA, Ahmed Abd el-razek, said that the protocol comes in line with the authority’s strategy to ease land allocation, approving licenses and getting rid of all obstacle facing investors.
Egypt began a strategy aimed at enhancing the SME sector, with the Central Bank of Egypt (CBE) announcing an initiative to fund Egyptian SMEs with LE 200 billion.
MSMEDA, The governmental entity responsible for micro, SME’s projects in Egypt, offers funds for SME’s projects either directly or through using banks as mediators
MSMEDA Director, Nevine Gamea, told Egypt Today in November that beneficiaries can access a maximum value of LE 3 million and a minimum value of LE 10,000 if the projects are in the commercial or service sectors. Loans can reach LE 5 million if the project is in the industrial sector.
In some cases, the agency reaches beneficiaries through collaborating with a network of 450 development associations, which reach some citizens that it cannot access without their help; it offers them micro-loans with value between LE 500 and LE 10,000.
The agency is also offering direct loans outside the banking system because the values are relatively small. With regards to the insolvency rate, around 5 percent of the participants will be unable to repay the loans.