ITIDA, Banque Misr cooperate financing ICT-focused SMEs at 5% interest

The Information Technology Industry Development Agency (ITIDA) has signed a cooperation protocol with Banque Misr to support businesses operating in the information and communications technology (ICT) sector.

The protocol, which falls under an initiative by the Central Bank of Egypt (CBE), will also provide the necessary credit facilities for the growth and development of businesses registered with ITIDA.

It was signed by ITIDA Chairperson Hala El Gohary and Vice-Chairperson of Banque Misr Akef El-Maghraby.

The protocol aims to provide the necessary financing to ICT companies, particularly small- and medium-sized enterprises (SMEs). The financing would be provided at an interest rate of 5%, in accordance with the regulating terms and conditions.

ITIDA will prepare a list of companies wishing to obtain financing from Banque Misr, after each company’s registration data at the agency. Entrepreneurship training courses will be provided to the companies by both Banque Misr and ITIDA.

Minister of Communication and Information Technology Amr Talaat has said that SMEs play an important role in achieving economic development and providing distinct and intensive job opportunities.

He noted that the joint ITIDA and Banque Misr cooperation protocol comes as part of his ministry’s continued keenness to develop local companies operating in the sector. This will enhance their operational capabilities and help them participates effectively in building a digital Egypt. It will also increase Egypt’s regional and global market competitiveness.

Talaat added that the protocol aims to provide an appropriate and encouraging financing climate for SMEs working in Egypt’s ICT sector. This will better enable them to raise the efficiency of their business performance and develop their capabilities.

El-Maghraby noted that Banque Misr attaches great importance to the SMEs sector, as the bank has set aside more than 20% of its total financing portfolio to this sector.

This comes in line with CBE directives and state efforts to advance the ICT sector to improve economic indicators, increase the rates of economic development, encourage the local product, and reduce the import bill.

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