Egypt’s Micro, Small, and Medium Enterprise Development Agency (MSMEDA) has partnered with Banque Misr to establish a new USD 10 million (EGP 500 million) financing program aimed at the country’s smallest businesses. The initiative is designed to expand funding access for microenterprises and support the government’s broader strategy to integrate more informal businesses into the formal economy.
Quick Facts
- New $10 million financing program launched.
- Targets approximately 2,500 microenterprises in Egypt.
- Aims to formalize informal businesses.
Inside the Tamkeen 3 Financing Facility
The agreement, officially titled the “Tamkeen for Microfinance (3)” project, marks the third phase of collaboration between MSMEDA and Banque Misr, following previous programs launched in 2021 and 2024. Under this new phase, MSMEDA will provide the capital for Banque Misr to on-lend directly to microenterprise owners.
The financing is intended for working capital and the purchase of machinery and equipment, enabling businesses to scale operations and boost production. Individual loan amounts will range from USD 1,600 (EGP 80,000) to USD 8,000 (EGP 400,000), with repayment terms set between 12 and 36 months. The program specifically targets existing microenterprises that have obtained a tax card after the agreement’s signing date.
A Push Towards Egypt’s Formal Economy
This funding facility directly supports a wider national agenda to grow Egypt’s formal economic sector. By participating, businesses not only gain access to much-needed capital but also become eligible for benefits under recent legislation.
The program aligns with the Ministry of Finance’s initiatives encouraging formalization, allowing enterprises to take advantage of the simplified tax frameworks and investment support outlined in Law No. 152 of 2020 for MSME Development. This move is expected to increase the contribution of small businesses to economic development and create both permanent and temporary jobs.
About MSMEDA
The Micro, Small, and Medium Enterprise Development Agency (MSMEDA) is the primary Egyptian government body responsible for fostering the growth and development of MSMEs. The agency works to create a supportive environment for small businesses through financing programs, technical assistance, and policy development, aiming to enhance their competitiveness and contribution to the national economy.
Source: Waya
