Egypt: MSMEDA provides $4.07mln to finance 10,000 micro enterprises

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Egypt - Two new contracts worth EGP 200m were signed between the Micro, Small and Medium Enterprises Development Agency (MSMEDA) and Tanmeyah Microenterprise Services Company.

The contracts aim to finance micro-enterprises in various governorates and help informal enterprises formalize their businesses.

The signing ceremony was attended by Basil Rahmi, CEO of MSMEDA, Alaa Al-Afifi, CEO of EFG Finance, a subsidiary of EFG Holding, and Jinu Johnson, CEO and Managing Director of Tanmeyah. Nevine Badr El-Din, Head of MSMEDA’s Central Microfinance Sector, represented the agency in the signing.

The first contract, valued at EGP 50m, will help informal enterprises transition to the formal sector and benefit from the incentives provided by the Small Enterprise Development Law No. 152 of 2020. The second contract, valued at EGP 150m, will target all groups of microenterprises across the country.

Rahmi said that these contracts are part of the agency’s efforts to implement the state strategy and the directives of Prime Minister Mostafa Madbouly and the Chairperson of the agency, to promote the micro-enterprise sector and expand its financing as a vital sector that creates jobs in various fields.

He explained that the first contract is dedicated to encouraging informal enterprises to join the formal sector, which will enable them to grow their activities and access a range of financial and technical services in line with the Enterprise Development Law 152/2020. This will help them increase their business volume and eventually become small and medium enterprises.

He added that the second contract will serve all target groups in the microfinance field, including young men and women and female breadwinners, to help them develop or expand an existing enterprise or start a new one in all commercial, service, agricultural, production, and industrial sectors.

Rahmi estimated that about 10,000 beneficiaries will be financed through the two contracts.

Al-Afifi, CEO of EFG Finance, said that this agreement between Tanmeyah and MSMEDA demonstrates the vital role of such strategic partnerships in achieving comprehensive economic development.

He indicated that through this partnership, Tanmeyah aims to enhance the capacity of micro-enterprises to grow their businesses, by providing them with financial support and the necessary resources to achieve that growth. He emphasized that the parties of the contract have confidence in the pivotal role of the entrepreneurship sector in driving economic development.

Johnson, CEO and Managing Director of Tanmeyah, said that this partnership reinforces the commitment of both parties to boost economic growth and improve financial inclusion in Egypt.

He added that this partnership also reflects the company’s strong commitment to supporting micro-enterprises, especially in areas that lack adequate financing solutions.