Egypt’s MSMEDA plans innovation unit, backs green transition for SMEs

Egypt’s Micro, Small, and Medium Enterprises Development Agency (MSMEDA) plans to establish an “Innovation Support Unit” and an integrated database as part of a strategic shift to help small businesses comply with mandatory green transition and sustainability requirements, the agency’s chief executive said.

Speaking at the “Egypt Sustainable Business Week”, MSMEDA CEO Mostafa Ismail Hassan said the agency is evolving beyond providing financing to offer specialised guidance and technical support. This aims to assist enterprises in meeting environmental standards that global markets now dictate regarding energy, labour, and institutional management.

“Small enterprises viewed sustainability as a burden and cost for many years, while today it has become a basic condition for entering markets, a main criterion for exporting, and a gateway to obtaining financing,” Hassan said during the event, which was organised by CSR Egypt and the Athar Network.

The planned Innovation Support Unit will assist startups and provide innovative solutions to encourage a knowledge-based economy. Additionally, MSMEDA is coordinating with partners to build an interactive database for the SME sector to serve both decision-makers and business owners.

Hassan noted that MSMEDA is collaborating with the Ministry of Industry and private sector partners to integrate SMEs into the supply chains of major companies, aiming to secure permanent marketing for their products and enhance their capacity to expand locally and globally.

He also highlighted cooperation with the Ministry of Finance to secure the necessary funding for projects to comply with global sustainability conditions and to access investment incentives. Financing entities are increasingly working to reduce risks associated with environmental conditions and sustainable supply chains, he added.

Concluding his remarks, Hassan urged banks and financial institutions to design specialised green finance products and called on large corporations to open their supply chains to small enterprises. He asked development partners to help mitigate the risks associated with financing the green transition, noting that the shift to a green economy is a pathway to increased competitiveness, exports, expanded production, and job creation rather than an end in itself.

Hassan also participated in a panel discussion during the event’s second day focused on SME growth, covering financing, institutional qualification, digital solutions, exports, and supply chain integration.