SIDBI Inked MoU with Egypt for SME Sector Development

The Small Industries Development Bank of India or better known as SIDBI recently inked Memorandum of Understanding (MoU) with Egypt-based Social Fund for Development (SFD) and the World Bank.

The MoU was signed in the presence of H E Dr Mohamed Morsi, who is the honorable President of the Arab Republic of Egypt, and Shri Anand Sharma, who is the Minister of Commerce & Industry, Government of India. 

Mr. Mohamed Morsi is on an official visit to the country in order to develop the mutual engagement of both the countries. He will eventually discuss about the scope of co-operations between the two countries with some of the high level ministers and officials of Government of India.

It has to be mentioned here that in the year of 1990 under an Act of Parliament SIDBI was set up. It is basically an independent financial institution for financing, promotion, growth and development of Micro, Small and Medium Enterprises (MSME) in India. Initially it was incorporated as a wholly owned subsidiary of Industrial Development Bank of India.

The MoU have some key features that will eventually benefit both the parties by providing enough exposures so SME sectors. Under the terms and conditions of the MoU SIDBI would provide all sorts of help in employment creation and income generation in Egypt. It would also work to strengthen the ties between India and Egypt. SIDBI would eventually provide required amount of boost to develop the co-operations between the said two countries.

As an added factor Egypt is the centre or main hub of Arab league, which comprises around 22 different countries altogether. SIDBI will provide its assistance to not only Egypt but also other countries of the Arab league. This will help India to come up with greater roles in Middle East countries along with the Western and Northern African (WANA) countries.

The initiative that will be taken by SIDBI would encourage young emerging entrepreneur of India to expand their financial business to the countries like Egypt. SIDBI will also acknowledge transfer of technology from India to those countries.

An international consultancy project has already been proposed in Egypt. According to that project it will eventually cover five main key areas which are Development of clusters and strengthening Risk Management, Credit Guarantee Mechanism, Responsible Microfinance, credit appraisal system for MSME loans, Developing venture capital and risk capital eco system.

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