With a funding portfolio currently totalling almost €85 million in grants and concessional loans, the Italian Development Cooperation aims to promote the country’s sustainable economic development by supporting private sector growth, particularly micro, small and medium-sized enterprises (MSMEs) and innovative start-ups, and the transfer of know-how in industrial sectors in which Italy can bring added value, such as leather, marble and timber. Furthermore, initiatives in this sector place particular emphasis on environmental protection, respect for workers’ rights, and support for those population groups most affected by unemployment, such as young people and women.
Two initiatives funded through concessional loans are tackling the problem of access to credit for local micro, small and medium-sized enterprises (MSMEs) and start-ups. The first initiative, with a budget of €12.6 million, finances a credit line managed by the Egyptian Micro, Small and Medium Enterprise Development Agency (MSMEDA), through which loans are offered to MSMEs at a favourable interest rate, to be used for the purchasing of machinery and equipment, and for technical assistance and training services. A second €45‑million concessional loan, managed by the Ministry of Industry, provides for the activation of a €36‑million credit line for MSMEs, a €5‑million Venture‑Capital fund‑of‑funds, and technical‑assistance activities in support of local MSMEs and start‑ups.
The initiatives funded through donations support the sustainable growth of MSMEs and start-ups, and the creation of decent work opportunities, as well as fostering women’s and youth entrepreneurship.
Two initiatives launched by the European Bank for Reconstruction and Development, with a total value of €7 million, alongside EBRD funding of approximately €35 million, aim to support local MSMEs. The first initiative supports the transfer of know-how to local businesses and start-ups in order to increase their ability to generate income and create decent jobs, while the second aims to support the agricultural sector’s transition towards greater efficiency and sustainable practices through technical assistance to local financial institutions, with a view to strengthening their capacity to meet the specific needs of the agricultural sector.
Three grant-funded initiatives provide technical assistance to the country’s industrial districts. In this regard, a €6‑million grant‑funded technical‑assistance programme for the company managing the “Robbiki Leather City” (RLC) industrial park is under way, and a new €3‑million grant‑funded programme for the development of the leather, wood and marble industrial districts is being launched. Both programmes are directly managed by AICS Cairo. The third initiative, with funding of €2.5 million, entitled “Productive Ecosystems for Decent Work in Egypt” carried out under the guidance of the International Labour Organisation, aims to promote sustained productivity growth and the creation of decent work in Egypt by supporting micro, small and medium enterprises and informal economic units operating in selected sectors (leather, marble and wood), through a systemic and integrated approach that tackles the causes of low productivity and the lack of decent work.