The Information Technology Industry Development Agency (ITIDA) signed a cooperation protocol with Bedaya Centre for Entrepreneurship & SMEs Development to encourage financial institutions to pump investments in ICT projects, especially small and medium sized companies (SMEs).
According to the protocol, Bedaya invests in ICT companies capitals, only those which are registered at the Agency’s database.
Companies fields can relate to communications, information technology, technology systems and others. Bedaya shall invest in ICT fields with a maximum fund of 25% of its total capital which is 134 billion EGP.
This applies to existing, recently established companies or those established in partnership with Bedaya in the local market.
Specific investment criteria were defined by the agreement, including investment in companies established as per the Egyptian law. Moreover, Bedaya should not allocate more than 50% of its total capital to finance companies whose capital sources or net assets oscillate between 2 to 50 billion EGP and revenues not to exceed 120 billion EGP.
Furthermore, bonds’ investments should not exceed 15 billion EGP per company.
Great Cairo ICT companies shall absorb a 40% maximum of the total capital allocated Bedaya.
To ensure the accurate implementation of the protocol, ITIDA and Bedaya agreed to form a facilitator committee including representatives and experts. The committee is to eliminate obstacles. It shall meet once per month or if necessary, to follow up on the implementation of the action plan.
ITIDA is to select companies to merge with greater entities. It will organize grouped meetings for them with Bedaya officials. According to the agreement, studies over economic and commercial activities related to ICT shall be exchanged with the qualified companies.
This agreement shall open channels of communications for companies already registered at ITIDA databases to benefit from the Fund’s services.
Bedaya also provides investments mechanisms to companies and related industrial projects, in coordination with the Agency, according to a specified framework to be agreed upon for each investment separately.
The protocol points out to the importance of the two parties adopting joint topics like business and SMEs development, besides exchanging related economic reports and researches.
