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Egypt's Micro, Small and Medium Enterprise Development Agency (MSMEDA) is working to help small businesses turn sustainability requirements into opportunities for growth, financing and access to new markets.

The agency outlined its approach during Egypt Sustainable Business Week, organised by CSR Egypt and Athar Network under the theme "From Green Transformation to Business Growth." The gathering brought together banks, financial institutions and development partners to explore ways of making the MSME sector more productive, sustainable and competitive.

Mustafa Ismail Hassan, CEO of MSMEDA, participated in the event's opening, pointing to the changing role of environmental standards in the business environment.

Green Standards Are Reshaping Business Opportunities

Hassan said that sustainability has shifted from being viewed as an additional burden by small enterprises to becoming an important condition for accessing markets, qualifying for exports and securing finance.

He noted that international markets increasingly require businesses to comply with environmental standards related to energy, labour and institutional management. At the same time, financing institutions are paying greater attention to environmental risks and the sustainability of supply chains.

According to Hassan, raising awareness among small businesses is essential to Egypt's green transition, particularly given the sector's significant contribution to employment.

MSMEDA is therefore working to broaden its support model, combining financing with technical assistance, specialised guidance and business services tailored to the needs of individual enterprises.

Supply-Chain Integration to Support Business Expansion

The agency is also seeking stronger cooperation with the Ministry of Industry and private-sector companies to connect MSMEs with the supply chains of larger businesses.

Hassan said this integration could help small enterprises secure more sustainable routes to market and expand their reach across local and international markets.

He also highlighted the role of the Ministry of Finance in supporting the sector through MSMEDA, particularly in helping businesses obtain the financing needed to comply with international sustainability standards and access incentives provided under investment-supporting legislation.

New Initiative to Support Innovation and Startups

As part of its longer-term plans, MSMEDA is seeking to establish an Innovation Support Unit dedicated to assisting enterprises and startups, encouraging innovative solutions and supporting the development of a knowledge-based economy.

The agency is also working with partners on an integrated database for the MSME sector. The platform is expected to provide an interactive source of information for business owners and policymakers.

Financial Institutions and Corporates Asked to Support the Green Shift

Hassan concluded his remarks with three recommendations directed at development partners: banks and financial institutions should develop dedicated green financing products; major corporations should create opportunities for small businesses within their supply chains; and development partners should help mitigate the financing risks associated with green transformation.

He said the transition to a green economy should ultimately contribute to stronger competitiveness, increased exports, expanded production and job creation.

Hassan also joined a main session on the event's second day, titled "From Financing to Expansion: How Can SMEs Become Ready to Compete Regionally and Locally?"

Discussions focused on the requirements for scaling businesses, including access to finance, institutional readiness, digital solutions, export development and integration into supply networks.