The initiative seeks to enhance MSMEDA's role in fostering business growth and financial sustainability, with a focus on promoting private sector activity and regional economic contribution.

This budget allocation aims to improve financial sustainability and expand MSMEDA's role in fostering business growth nationwide.

The upcoming fiscal year will introduce a simplified tax system that allows businesses to access preferential financing, especially those involved in local manufacturing and export projects.

Egypt is launching a new funding initiative through a collaboration between the Ministry of Finance and MSMEDA, aimed at boosting private sector growth and supporting entrepreneurs in key sectors.

Recent reports show Egypt's startup ecosystem made significant progress in 2025, securing $228 million in venture capital and debt financing in the first five months, a 130% increase from the previous year.

As part of the 2025/2026 state budget, Egypt has allocated 5 billion Egyptian pounds (around $101 million) to support micro, small, and medium-sized enterprises (MSMEs), reflecting a strong government commitment to economic growth.

This financial support aligns with regional trends, as Egypt led Middle Eastern and North African startup funding in May 2025, securing $125 million out of the region’s total $289 million raised in that period.

Finance Minister Ahmed Kouchouk emphasized that the funding will benefit tax relief beneficiaries, promote entrepreneurship, and empower low-income households, with MSMEDA playing a key role in these initiatives.

MSMEDA CEO Basel Rahmi praised the cooperation with the Ministry of Finance, highlighting that the partnership will support economic empowerment for young entrepreneurs across Egypt.

This funding specifically targets young entrepreneurs in priority sectors, making it easier for them to access affordable financing and encouraging business development across the country.