(MENAFN - Daily News Egypt)
Dante Campioni, managing director and CEO of ALEXBANK, said that the small and medium enterprises (SMEs) portfolio at the bank amounted to EGP 3bn, noting that the bank is very interested in financing the sector. He added that the bank provides financial consultation to SMEs, along with financing them.
Building on the crucial role of SMEs in supporting and enhancing the Egyptian economy, the Egyptian Exchange (EGX) and ALEXBANK signed a Memorandum of Understanding (MoU) to support and empower Egyptian SMEs by facilitating access to capital for business expansions of promising and growing companies.
The initiative aims to further support the vital sector of SMEs, providing additional financing sources as well as attracting new shareholders through NILEX, the first pioneer market dedicated to SMEs in the Middle East and North Africa (MENA).
Companies are likely to experience many positive effects after entering the stock exchange, including being more visible and regulated—thus increasing ther transparency and attractiveness for investors and lenders. This will allow better access to the financial resources needed to sustain their growth, bringing more efficiency to the Egyptian economy as well.
Mohamed Omran, chairperson of the EGX, said that supporting SMEs is among the top priorities on the EGX's future agenda. 'We strive to support this promising sector and help it grow,' he stressed. Omran added that the increased number of distinguished SMEs will help the economy by creating more job opportunities and increasing its competitiveness, which is critical in the coming period, particularly in light of the current economic challenges.
He pointed out that NILEX is one of the important tools available to support SMEs, through the inclusion of areas outside of Cairo and Alexandria.
The value traded on NILEX jumped remarkably by 45% in 2016, reaching EGP 900m. Additionally, its turnover liquidity ratio increased by 63% in 2016.