MoU to Improve the Regulatory and Legislative Environment for Entrepreneurship and Small Businesses

Dr. Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, witnessed the signing ceremony of a Memorandum of Understanding between the Micro, Small, and Medium Enterprise Development Agency (MSMEDA) and the Egyptian Regulatory Reform Initiative “Erada.”

Improve the Entrepreneurial Ecosystem 

The MoU aims to assess the legislative impact of Law No. 152 of 2020 concerning the development of micro, small, and medium enterprises, as part of broader efforts to improve the entrepreneurial ecosystem and strengthen institutional cooperation between both parties in policy support and regulatory reform.

The MoU was signed by Mr. Basil Rahmi, CEO of MSMEDA, and Dr. Heba Shaheen, CEO of the “Erada” Initiative. The agreement aligns with the state’s efforts to build a more supportive legislative and regulatory framework for the SME sector, stimulate entrepreneurship, and contribute to sustainable economic growth.

The Legislative and Regulatory Framework

Dr. Al-Mashat emphasized the importance of cooperation among state institutions and entities working on improving the business environment. She noted that the signing of this MoU aligns with the government’s direction of enhancing the efficiency of the legislative and regulatory framework, empowering entrepreneurs and project owners, and strengthening their ability to expand and compete locally and internationally.

The Minister added that the ministry places special priority on developing policies that support micro, small, and medium enterprises, considering them a key driver of growth and job creation. She affirmed that the “Erada” Initiative represents an important addition to legislative impact assessment and specialized studies that help improve the investment climate.

 Fundamental Pillar of the National Economy

Al-Mashat also pointed out that the MSME sector is a fundamental pillar of the national economy. Supporting this sector is a top priority in the state’s economic and social development plans, given its role in boosting productivity, stimulating innovation, and empowering youth and women economically.

She stressed that developing the legislative and regulatory framework for the SME ecosystem is no longer just a reform step, but a necessity to enhance the economy’s ability to keep pace with fast global changes. The ministry is working on formulating more integrated policies aligned with national sustainable development priorities.

 Supportive Environment

For his part, Basil Rahmi, CEO of MSMEDA, stated that the agency is committed to coordinating efforts with government entities, civil society organizations, and initiatives operating in the SME sector to create a more supportive environment for establishing various types of projects. This environment should encourage citizens—especially entrepreneurs—to contribute more effectively to the national economy.

Rahmi added that the MoU with the “Erada” Initiative will strengthen collaboration between both sides to support the entrepreneurial ecosystem and enhance the ability of startups to achieve sustainable, competitive, knowledge-based economic growth, ultimately contributing to the creation of decent job opportunities. He praised the Ministry of Planning, Economic Development, and International Cooperation for its continuous support to MSMEDA through the ministerial entrepreneurship committee.

 Erada

He highlighted that cooperation with the “Erada” Initiative will positively contribute to developing a more enabling legislative and regulatory framework for MSMEs and entrepreneurship. This will improve decision-making efficiency, support the implementation of state plans, and enhance the competitiveness of this vital sector. This will be achieved through assessing the legislative impact of Law 152/2020 and its implications for business owners, helping them develop and sustain their enterprises.

Source: Press Release