(MENAFN- Daily News Egypt) The financial Regulatory Authority (FRA) has signed a cooperation protocol with the Ministry of Youth and Sports to oversee the effective use of funding provided to small, medium, and micro-enterprises (SMEs). The signing ceremony also marked the launch of Egypt's first club dedicated to non-banking financial literacy and awareness at youth centers and development hubs. Additionally, the FRA introduced a social media initiative called“I Invest,” aiming to educate the public and promote financial literacy, enabling people from all walks of life to benefit from non-banking financial services to achieve their future goals.
This initiative aligns with the ongoing efforts of the FRA and the Ministry of Youth and Sports to promote comprehensive development, support young entrepreneurs, and raise awareness of the diverse and innovative financial solutions provided by the non-banking sector for SMEs.
The protocol aims to foster collaboration and deliver training programs to youth affiliated with the Ministry of Youth and Sports and the FRA. The objective is to equip them with the skills needed to ensure the optimal use of funds for SMEs, enhancing transparency, accountability, and quality within this critical sector. Through practical training and guidance, participants will learn about financial assessment, review, performance analysis, risk management, and best practices in managing SMEs.
The FRA has developed a specialized programme to train youth on effectively monitoring the use of funds allocated to SMEs. It includes forming field inspection teams to ensure the sustainability of micro-finance projects. The program emphasizes technical aspects that field teams must master, alongside the essential skills needed to verify the long-term viability of projects funded by licensed micro-finance institutions regulated by the FRA.
Mohamed Farid, Chairperson of the FRA, emphasized that the authority aims to localize and spread financial literacy across youth centers managed by the Ministry of Youth and Sports throughout Egypt. He noted that educating young people about non-banking financial services plays a pivotal role in community development and financial inclusion, contributing to real economic growth.
Farid highlighted that this initiative would help drive sustainable development across Egypt's governorates, supporting communities in planning their financial needs, including investment, insurance, and financing, to improve their quality of life, in collaboration with the Ministry of Youth and Sports.
He added that in the coming period, there will be a focus on developing simulation models for various non-banking financial activities, targeting all age groups. These models will instill principles of financial planning, saving, and investing, equipping participants with the knowledge and skills needed to make informed financial decisions and achieve long-term goals. The programs also increase the likelihood of employment for the trained youth.
Farid underscored the importance of the current cooperation between the FRA and the Ministry of Youth and Sports, where knowledge gained by youth has evolved from benefiting individuals to benefiting the community at large, actively contributing to market regulation through the FRA.
Ashraf Sobhi, Minister of Youth and Sports, stated that this protocol is part of the joint efforts of both the ministry and the FRA to promote comprehensive development, support young entrepreneurs, and increase awareness of SMEs. He described the protocol as a significant step towards empowering Egyptian youth to harness their talents and creativity, transforming their ideas into real projects that contribute to societal development.
Sobhi stressed that the agreement between the FRA, the regulatory and legislative authority responsible for non-banking financial markets, and the Ministry of Youth and Sports, which aims to improve the quality of life for Egyptian youth, reflects the ongoing efforts by the Egyptian state, led by President Abdel Fattah El-Sisi, to support young people and provide the resources they need to succeed, recognizing their crucial role in shaping Egypt's future.
He further emphasized that raising awareness among youth about non-banking financial services is key to fostering community development and financial inclusion, ultimately boosting the economy. Understanding the importance of financial planning, saving, and investing equips young people with the skills needed to make sound financial decisions and achieve their long-term goals. Familiarity with non-banking financial services also opens new opportunities for youth to create alternative income sources, encourages creative thinking, innovation, and the development of new financial solutions, thus supporting entrepreneurship, enhancing confidence, and promoting financial independence, which, in turn, drives community development and economic balance.
Minister Sobhi announced the launch of Egypt's first financial awareness and literacy club at youth centers and development hubs, marking a new direction for these centers.
Mohamed Abdelaziz, Assistant Chairperson of the FRA, revealed that the authority's plan to educate and promote financial literacy among youth has been ongoing since 2022. Now, it is entering its second phase, which will train young people to monitor the effective use of funds for SMEs.
Abdelaziz noted that the FRA's efforts have led to a significant increase in the number of young people benefiting from its awareness programs, reaching 10,640 participants. The current collaboration will further empower youth to conduct financial assessments, reviews, performance analyses, and risk evaluations while learning best practices for managing SMEs.
He added that the partnership between the FRA and the Ministry of Youth and Sports represents a culmination of efforts to integrate government agencies, channeling youth energies into productive paths that positively impact the national economy, investment rates, and savings.
At the signing ceremony, young participants from the fifth cohort of the Certified Financial Trainer program were recognized for their achievements. These trained individuals are now qualified to provide financial education and training across various Egyptian governorates.
Manal Gamal, Head of the Central Administration for Youth Empowerment at the Ministry of Youth and Sports, stated that the collaboration with the FRA opens new horizons for enhancing the financial capabilities of Egyptian youth. It helps them plan financially and make well-informed investment and savings decisions, aiding in achieving their goals. She noted that the newly launched financial clubs, set to be activated soon, will target numerous youth centers and clubs to accelerate the spread of financial awareness and literacy.
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