Egypt: €22 million EU programme seeks to boost jobs and living conditions in rural areas

The European Commission today approved a €22 million programme aimed at improving living conditions for the poor and stimulating job creation in rural areas in Egypt by supporting the development of agricultural Small and Medium Enterprises (SMEs).

The new support will improve access to finance for farmers, and increase productivity in selected areas, such as the dairy and aquaculture sector, with the aim of improving farmers' living conditions. The support will also provide capacity building and training in order to improve farmers' business planning skills and enhance the understanding of local banks dealing with agricultural SMEs.

Highlighting the vital role of SMEs in creating jobs and growth in Eygpt, EU Commissioner for Enlargement and European Neighbourhood Policy, Štefan Füle, said: “By making it easier for them to access finance we are helping to remove one of the main barriers to job creation, enabling more Egyptian people to make a living and support their families as a result.”

The project follows up on the spirit of the Financial Investment and Sector Co-operation (FISC) – a Rural Component programme that ended last year and which was seen as having achieved positive results. The project is expected to start following the establishment of the first democratic government in the second quarter of 2012, with the first farmers already benefitting in the second half of 2012.