Heliopolis, Cairo - Egypt

Success stories

2016-2017
/
Egypt

Building a Better Business Environment for Egypt’s MSMEs

Challenges:

Micro, small, and medium-sized enterprises (MSMEs) are a cornerstone of Egypt’s economy, yet they face significant legal and regulatory barriers that hinder their establishment, operations, and growth. Institutional fragmentation, overlapping regulations and complex procedures have long discouraged formalization and limited the sector’s contribution to economic development. To strengthen support for MSMEs, the Social Fund for Development (SFD), funded by the Deauville Partnership’s Transition Fund and implemented in cooperation with the European Bank for Reconstruction and Development (EBRD), sought to develop a national framework to improve the legal and regulatory environment for MSMEs.

Solutions:

Arab African Advisers was engaged, by EBRD, as Senior Policy Advisor to propose regulatory and legal reforms to enhance MSME business environment. Our contribution included:

  • Literature review: Assess existing research on legal and regulatory challenges facing MSMEs.
  • Legal framework analysis: Identify legal instruments governing the MSME business environment and provisions that create obstacles.
  • Institutional mapping: Map key institutions involved in regulating MSMEs to highlight overlaps and gaps.
  • Stakeholder consultations: Engage with government bodies, private sector representatives, and other stakeholders to validate findings and explore solutions.
  • Policy recommendations: Develop a set of actionable recommendations to reform the legal and regulatory framework, including steps needed to reduce barriers and promote MSME growth and formalization.

Impact:

The assignment helped Egypt move closer to creating a more enabling business environment for MSMEs by:

  • Identifying the most pressing legal and regulatory obstacles facing the sector.
  • Building consensus among key stakeholders on reform priorities.
  • Laying the foundation for a national framework that simplifies procedures, reduces red tape, and encourages formalization.

 

By aligning reforms with international best practices and local realities, Arab African Advisers supported SFD in unlocking the potential of its MSME sector as a driver of inclusive growth and job creation.

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Heliopolis, Cairo - Egypt

Tel/Fax: 00202 24028851

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