Egypt SMEs to get sharper teeth to bid for tenders under new legislation
LEGISLATION WATCH- SMEs to get leg up in public tenders: SMEs will get priority treatment and a 20% quota of government tenders under the anticipated Public Contracts Act, according to a Finance Ministry statement. The new legislation will also exclude SMEs the requirement to submit financial guarantees with their bids under some state tender contracts and make the eligible for advance payments in the event they win a tender.
Background: The legislation passed the House of Representatives this past July and, at the time, Finance Minister Mohamed Maait said we should expect the executive regulations to be out in six months’ time. The act aims to decentralize and streamline government tenders as well as support SMEs and entrepreneurship.