TRADE_RFP_Section_J.10_-_CBE_Definition_of_SMEs.pdf
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This document amends definitions for small and medium-sized enterprises (SMEs) set by the Central Bank of Egypt (CBE) in its EGP 200 billion SME lending initiative from 2015. The amendments increase qualifying revenue and employee thresholds for small and medium categories. The interest rate for microenterprises and small companies with under EGP 10 million in sales is set at 5% for loans up to 2 years, without requiring audited financial statements to encourage formalization. Medium-sized renewable energy and industrial companies can now access loans, and the maximum per-client bank loan amount is increased to EGP 40 million. EGP 10 billion will be allocated at a 12% interest rate for short-term manufacturing and renewable energy working capital loans, prioritizing exporters and import substituters.
The related federal contract opportunity is a solicitation from the US Agency for International Development Egypt with solicitation number 72026319R00003 for the TRADE program. However, no additional details are provided about product/service requirements or response deadlines.
J.10 CBE Definition of SMEs
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J.10: CBE Definition of “SMEs”
The Central Bank of Egypt (CBE) issues amendments to SME’s lending initiative
On March 5, 2017, the Central Bank of Egypt issued amendments to its EGP 200 bn SMEs lending initiative (that was issued in 2015) to amend the definition of very small (to be included in micro-enterprises), small, and medium enterprises to be as described in the following table. This amendment will allow more SMEs to benefit from the CBE initiative of low interest rate on banks’ loans.
Companies &
Enterprises
Existing New (Newly Established)
Volume of Business
(Sales/Annual Revenues)
No. of
Employees
Paid-up Capital No. of
Employees
Micro
(unchanged)
Less than LE 1 Mil Less than 10 Less than LE 50,000 Less than 10
Small (increased) LE 1 – 50 Mil Less than 200 LE 50,000 – 5 Mil
(Industrial)
LE 50,000 – 3 Mil
(Non- Ind.)
Less than 200
Medium
(increased)
LE 50 – 200 Mil LE 5 – 15 M
(Industrial)
LE 3 – 5 M (Non-
Ind.)
For Micro and Small Firms: The amendments set the interest rate of 5% for lending to microenterprises and small companies with a sales turnover of less than EGP 10 mn. The CBE recognized that these companies are in the informal sector and hence will offer them the opportunity to get bank loans for up to 2 years without submitting audited financial statements. According to the CBE, this should encourage micro and small firms to formalize during the two year grace period.
For Medium Firms: The amendments also allowed renewable energy companies to benefit from the CBE initiative together with industrial and agricultural companies. The amendments increased the total loan to one client from one bank from LE 20 million to LE 40 million. Finally and more importantly, the amount of LE 10 billion will be allocated from banks to medium-sized businesses working only in the manufacturing and renewable energy sectors to cover short term, working capital loans at interest rate of 12%, Priority will be given to those companies that export or produce for import substitution.
File details come from the government source that posted it. Updated .