Egypt’s non-bank financial services provider, Tamweely Financial Services, has signed two financing agreements with the Micro, Small and Medium Enterprise Development Agency (MSMEDA) for a total of EGP 350 million. The capital is set to fund approximately 3,000 new and existing micro-enterprises across the country, supporting job creation and economic formalization.
Quick Facts
- Total Financing: EGP 350 million provided by MSMEDA.
- Target Beneficiaries: Around 3,000 micro-enterprise projects.
- Key Objective: Promote self-employment and formalize informal businesses.
- Maximum Funding: Up to EGP 292,000 per project.
Fueling Economic Formalization
The agreements are a central part of Egypt’s national strategy to develop its micro-enterprise sector. This initiative, carried out in cooperation with the Ministry of Finance and the Egyptian Tax Authority, aims to expand access to regulated finance and encourage businesses operating in the informal economy to transition into the formal sector. By doing so, these enterprises can gain access to incentives and services provided under investment laws, improving their long-term stability and growth.
Bassel Rahmy, CEO of MSMEDA, stated that the partnership with Tamweely aligns with the agency’s goal of expanding its microfinance portfolio. “The new agreements with Tamweely are part of MSMEDA’s strategy to expand its microfinance portfolio and strengthen cooperation with specialised finance companies, making financing available to young entrepreneurs, both men and women, seeking to establish new businesses,” he said.
A Two-Pronged Financial Strategy
The EGP 350 million facility is divided into two distinct agreements, each with a specific focus.
The first agreement, valued at EGP 100 million, is designed to encourage business owners to join the formal economy. It will support projects looking to strengthen their productive capacity while formalizing their operations.
The second, larger agreement of EGP 250 million, will focus on financing the establishment of new micro-enterprises and helping existing businesses expand. This includes providing working capital and funding for the purchase or modernization of machinery and equipment to increase overall productivity.
Expanding a Strategic Partnership
For Tamweely, the new credit facilities build on a long-standing relationship with MSMEDA and reinforce the company’s position in Egypt’s non-bank financial services sector. Ahmed Khorshid, CEO and Managing Director of Tamweely, emphasized the mutual trust between the two organizations.
“The EGP 350m in financing facilities will help expand funding for existing businesses with strong growth potential, boosting productivity, creating jobs and increasing the sector’s contribution to the national economy,” Khorshid explained.
He also highlighted the initiative’s role in advancing financial inclusion, a key objective of Egypt Vision 2030. “This will help them formalise their operations, enhance operational efficiency and strengthen their long-term growth prospects,” Khorshid added.
About MSMEDA
The Micro, Small and Medium Enterprise Development Agency (MSMEDA) is the primary governmental body in Egypt responsible for developing and supporting the SME sector. It works to create a favorable business environment, provide financing, and offer technical support to foster entrepreneurship and economic growth.
About Tamweely
Tamweely Financial Services is an Egyptian non-bank financial institution specializing in microfinance. The company provides a range of financial products and services tailored to the needs of micro and small business owners, aiming to promote financial inclusion and support sustainable economic development.
Source: Zawya
