Minister of Planning and Economic Development Hala El Saeed said the government has ratified the allocation of EGP 8.5 bn for the establishment of 13 industrial zones nationwide to support small- and medium-sized enterprises (SMEs), Invest-Gate reports.

“SMEs represent a crucial chunk of the national economy, as the number of sector-related establishments has reached 1.7 mn to date, rendering 44.6% of total businesses in the private sector,” El Saeed further stated in a ministerial statement on June 9.

Most importantly, SMEs have been one of the severely COVID-hit markets, whereas emerging companies and businessmen face many hurdles due to the pandemic’s negative circumstances, El Saeed revealed during the most recent German-Arab Chamber of Industry and Commerce (AHK Egypt) seminar.

The minister emphasized that most of these challenges arise from supply-side shock. She also highlighted that the SME sector currently employees 5.8 mn workers, of which 43.1% operate in the Egyptian private sector, noting that such projects are distinguished for flexibility in work capabilities, according to the statement.

On May 31, Local Development Minister Mahmoud Shaarawy had uncovered that work will commence for the establishment of four industrial zones in Upper Egypt’s Sohag and Qena in early FY 2020/21, with investments amounting to EGP 6 bn, according to an earlier statement.