Egypt’s Micro, Small, and Medium Enterprises Development Agency (MSMEDA) has signed a financing agreement of EGP 300 million with Al Ahli Capital for Microfinance (Tamkeen). The deal aims to bolster micro-enterprises across the country by providing much-needed capital and encouraging their integration into the formal economy.
Quick Facts
- Financing Amount: EGP 300 million facility.
- Key Players: MSMEDA and Tamkeen.
- Core Objective: Integrate micro-enterprises into the formal sector.
Formalizing the Informal Sector
The agreement was signed by Basel Rahmy, CEO of MSMEDA, and Karim Saada, Chairman of Tamkeen. It falls under a broader Ministry of Finance initiative designed to help micro-enterprises transition into the formal sector. By doing so, these small businesses can gain access to the state’s investment-friendly laws and other benefits.
The contract is expected to encourage business owners to formalize their operations by opening tax files, which in turn can lead to increased production and better employment opportunities.
Expanding the Microfinance Network
According to Rahmy, this financing is part of MSMEDA’s ongoing collaboration with the National Bank of Egypt (NBE) to strengthen support for the micro-enterprise sector.
He noted that the deal aligns with the agency’s strategic goals to grow its network of partnering microfinance companies, increase its total microfinance portfolio, and ultimately generate more jobs for citizens throughout Egypt’s governorates.
A Pattern of SME Support
This latest move is consistent with MSMEDA’s recent activities. In March, the agency signed a similar contract with Aman Holding, providing another EGP 300 million in financing to back SMEs nationwide.
MSMEDA also recently increased funding for projects in the Sinai Peninsula and expanded its free entrepreneurship training programs as part of the country’s Sinai Liberation Day celebrations.
About MSMEDA
The Micro, Small, and Medium Enterprises Development Agency (MSMEDA) is an Egyptian governmental body dedicated to supporting the growth and development of SMEs. It provides financing, training, and resources to foster entrepreneurship and economic development across Egypt.
About Tamkeen
Al Ahli Capital for Microfinance (Tamkeen) is a financial institution in Egypt that offers microfinance solutions to small and micro-business owners. The company focuses on providing capital to help these enterprises grow and become part of the formal economy.
Source: Zawya
