The last weekly meeting of Egypt’s cabinet was held on Wednesday under the PM Mostafa Madbouly, and the proposed presidential decree that will move forward a funding agreement between the World Bank and his government was approved by the cabinet.
The objective of the deal is to promote startup culture and job creation for women and the youth.
This project is known as the ‘Catalyzing Entrepreneurship for Job Creation’ is sized at $200 million. It will promote entrepreneurship and combine with extended access to financial support for medium and small enterprises. Over the course of the last few years, such companies have proven themselves to be an important source of job creation and growth.
The major obstacles faced by the youth and women in times of launching new business enterprises will be addressed by this project; said a statement issued by the World Bank.
According to Aharm Online, the Egyptian economy and financial system is majorly dominated by lending to mature businesses primarily by the banks. This project will create additional channels of funding other than the banks. The amount is expected to be $145 million in forms of loans. The project component will feature established lending targets for youth and women-led businesses, small businesses in the least developed areas and first-time borrowers.
The project will also invest a large amount of $50 million in privately owned risk capital intermediaries, in order to build up the early-stage investment ecosystem. In addition, it will also aim to fund coaching and training opportunities for new enterprises throughout the entrepreneurial lifecycle.
Egypt’s cabinet approved during its weekly meeting on Wednesday under Prime Minister Mostafa Madbouly a proposed presidential decree on a funding agreement signed between the Egyptian government and the World Bank.
The deal aims at promoting entrepreneurship and creating more job opportunities, particularly for young people and women.
The $200 million ‘Catalyzing Entrepreneurship for Job Creation’ project is aimed at promoting entrepreneurship, combined with expanding access to finance for small and medium enterprises, which have proven to be a major source of growth and job creation.
The World Bank has said in a statement that the new project is designed to address the major obstacles that young people and women face when launching new businesses.
In an economy where the financial system is dominated by banks lending primarily to mature businesses, the project will channel $145 million mainly through non-bank financial institutions that offer loans to small businesses. This project component will have established lending targets for women and youth-led businesses, first-time borrowers, and small businesses in less developed regions across Egypt.
To build up the early-stage investment ecosystem in Egypt, the project will invest $50 million in privately managed risk capital intermediaries. The project will also fund coaching opportunities for new businesses throughout the entrepreneurial lifecycle to build the necessary skills and capacity for success.
This news was originally published on Magnitt