Minister of Industry and Trade Tarek Kabil signed three cooperation protocols with the aim of providing facilitated financing packages and raw materials to small- and medium-sized enterprises (SMEs) in the two cities of Al-Robeky for leather, and Merghem for plastic industries.
The minister said that an integrated industrial zone for leather was established with the aim of making Egypt a strategic centre for leather tanning. An industrial complex was also established in Alexandria to utilise the advancement of the petrochemicals industry in the city.
Kabil explained that two protocols were signed with the National Bank of Egypt (NBE). The first is between the bank and the Cairo Company for Urban and Industrial Investment and Development. It aims to provide financial services to the owners of SMEs that moved from Magra El Oyoun region to Al-Robeky, as well as to investors, with facilitated conditions on a repayment period of seven years, including a two-year grace period for small and very small enterprises.
As for medium-sized enterprises, the maximum period for payment is 10 years, including a grace period. The financing is paid in monthly, quarterly, or semi-annual portions, according to the cash flow of the projects.
The minister noted that the protocol’s period is five years, starting from the date of signature, and can be renewed after the agreement of both parties.
The second protocol is between the NBE and the Industrial and Mining Projects Authority (IMPA), affiliated to the Ministry of Industry and Trade. It aims to provide facilitated financing packages to new investors and owners of small and microenterprises in Merghem. It also aims to offers technical support to factory owners through trainings, and marketing support through exhibitions and direct and indirect connection to the market.
The protocol’s period is five years, starting from the date of signature.
The third protocol was signed between IMPA and the Egyptian Petrochemicals Holding Company (ECHEM). The protocol includes the provision of raw materials used in plastic industries by Sidpec without an intermediary. It also aims to establish stores for these materials to help manufacturers maintain competitive prices in markets.