Egypt’s MSME Development Agency Reviews Franchise Support Plans

Egypt’s Micro, Small and Medium Enterprise Development Agency (MSMEDA) is reviewing and updating its plans for managing franchising activity as part of a broader strategy to support business growth. According to a report published by Al Borsa newspaper on 29 September 2026, the review coincides with new lending targets and technical and digital services. However, no dedicated financing programme or implementation details have been announced for the franchise sector.

Franchise review forms part of the agency’s changing role

Mostafa Hassan, the agency’s chief executive, said the new strategy aims to strengthen its role as a catalyst for business growth, rather than simply a provider of finance. The approach centres on building companies’ capabilities and helping them respond to changing economic conditions, with technical support tailored to each business’s needs to help it expand and become more competitive.

As part of this approach, Hassan highlighted work to review and update plans for managing franchising activity, alongside the development of industrial business incubators. His comments linked both initiatives to creating a more supportive environment for new businesses, but gave no timetable for completing the franchise review or implementing its findings.

The main news for the franchise sector is that improving the management of franchising is now among the agency’s stated priorities. The report did not, however, detail the scope of the proposed changes, the services they might produce or how businesses could access them. The statement should therefore not be treated as an announcement of a regulatory change already in force, or as an invitation to apply for a new franchise programme.

Financing targets extend beyond the franchise sector

On financing, Mohamed Medhat, the agency’s deputy chief executive, said MSMEDA aims to provide EGP 3 billion in business loans by the end of 2026. He added that around 4,000 companies benefit from the agency’s financing, with industrial activities accounting for approximately 40% of that funding.

He also announced a target to increase the financing portfolio from EGP 7 billion at present to EGP 12 billion by the end of the year. These figures reflect the scale of the agency’s wider financing ambitions, supporting micro, small and medium-sized enterprises and their role in creating jobs and contributing to gross domestic product.

However, the published figures are not announced allocations for franchising, nor do they indicate how many brands or franchisees receive funding from the agency. The target for new lending and the target for the overall portfolio are also separate measures, each cited independently in the deputy chief executive’s comments.

This distinction matters for anyone considering buying a franchise. A general commitment to business financing does not, on its own, establish whether a particular venture is eligible, or determine the loan amount, borrowing costs or security requirements. The report provided no financing terms specifically for buying a franchise or opening a branded outlet.

Technical support, quality standards and preparation for expansion

The announced strategy goes beyond lending to include technical support, export readiness, digital transformation, quality improvements and more effective management. Hassan explained that support for companies includes helping them obtain internationally recognised quality certifications, including ISO certifications.

He also highlighted support for entrepreneurs in turning their ideas into businesses, and the provision of early-stage funding in collaboration with partners. The aim is to accelerate the development of ideas into viable businesses capable of growth. This places business capability development alongside finance, rather than limiting support to access to funds alone.

For those following the franchise sector, the significance of this part of the announcement lies in the types of services the agency intends to expand. However, the report did not link quality, export or technical support services to a separate route for franchisees, nor did it name any participating brands. These services therefore remain part of the broader announced strategy, pending clarity on how different businesses will be able to access them.

Digital platform planned for 2027

Hassan also outlined plans to launch a comprehensive, interactive digital platform during 2027 to connect businesses, match their needs and make it easier for small and medium-sized companies to access available services and opportunities. He said the agency is moving towards a data-driven system to strengthen these connections.

The digital strategy also includes making low-cost, locally developed solutions available using artificial intelligence. However, the platform remains a stated target for the following year, relative to the report’s publication date, rather than a service already launched. No details were published about registration or whether it would include dedicated tools for listing franchise opportunities or matching brands with investors.

Practical takeaway: Brand owners and prospective franchisees should follow further announcements on the franchise review and ask the agency about the services currently available and their actual eligibility requirements. The financing targets and planned platform provide useful context worth monitoring, but neither guarantees access to funding or a specific franchise opportunity.