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Small and Medium Investment (SMI) A window of opportunity for Egypt November, 2008 Slide 2 2 GAFI launches a new initiative in support of entrepreneurship and small & medium investors Slide 3 VISION & TARGETS The Strategy is based on the premise that investment is the main driver for Job creation ( ) especially in times of crises and external shocks. To make a deliberate departure from piecemeal and inadequate programs towards making SMEs a career path for the majority of the labor force, especially youth by: Shifting the emphasis from enterprises to entrepreneurs. Changing youth from Job seekers to Job makers Launching a program to create successive generations of entrepreneurs, and continuing to improve doing small & medium business Building on strategic alliances with ministries and institutions with programs relevant to the SMI strategy 3 Slide 4 TARGETS: 2015 and 2025 Increasing SMEs contribution to GDP from its present level of 25% to 40% by 2015, and 50% over the next 10 years by 2025. (the expected number of workers employed in this sector would be about 12 million by 2015, or 42% of a projected labor force of 28.6 million) 4 Benchmarked on Malaysian and Japanese experiences Slide 5 PILLARS OF THE STRATEGY 5 Improving Doing Business Environment SMIndex Slide 6 Deliverables 6 Slide 7 7 Slide 8 8 Slide 9 9 Existing Business units Proposed Business units PORT SAIDSOUTH SINAI SUEZNORTH SINAI DAKAHLIANEW VALLEY MONOFIABENI SWEIF FAYUMDAMIETTA MENIAISMAILIA SOHAG QENA ASWAN Slide 10 IMPLEMENTATION OF THE STRATEGY 10 The implementation of the strategy will depend on close collaboration with all the actors active in this area notably: Social Fund for Development, Businessmens associations, NGOs working in the field of entrepreneurship, Banks and venture capital funds, and; NILEX. Slide 11 IMPLEMENTATION OF THE STRATEGY: Immediate Action 11 Giving effect to decentralization in close collaboration with the Ministry of Local Development and the Governors in order to empower GAFIs offices in the Governorates Launching specific window in the One- Stop Shop for SMIs Giving priority to SMIs in allocating land within the free,economic and investment zones (implementation has started in Meit Ghamr and El Saff ) Offering post - establishment services specially related to licensing, finance, insurance, marketing and governance. Implementation of Vocational and Management training in the free,economic and investment zones in collaboration with international specialized agencies (ILO) Setting up the Egyptian Center for Entrepreneurship Taking steps for the creation of an SMI Fund Management Company. Slide 12 MONITORING The SMIndex GAFI, in close collaboration with the relevant stakeholders, especially Business Associations, will develop an SMI Index that aims at providing a numerical tool to measure the change in the different aspects of SMIs. The SMIndex will also provide an Entrepreneurship sub-index focusing on the evolution of entrepreneurship performance including entry, growth, survival, and exit. SMI portal: The gate way to the SMI community in EGYPT www.smi.gov.eg 12