Egypt’s Micro, Small, and Medium Enterprises Development Agency (MSMEDA) has signed a significant financing agreement valued at approximately $6.3 million (EGP 300 million) with Reefy Microfinance Enterprise Services. The partnership aims to empower around 3,000 micro-enterprises across Egypt’s governorates and rural areas, bolstering economic growth and job creation at the grassroots level.
A Strategic Push for Financial Inclusion
Under the terms of the agreement, individual projects can receive financing up to $5,600 (EGP 266,000), depending on their specific financial requirements. This initiative is designed to support both aspiring and existing entrepreneurs, providing citizens and youth with the necessary capital to establish new micro-enterprises or to fund the development, expansion, and renewal of current projects.
The agreement was formalized in the presence of Basel Rahmy, CEO of MSMEDA, Mohamed Medhat, Deputy CEO of MSMEDA, and Ahmed Labib, Managing Director and CEO of Reefy.
Leveraging Nationwide Reach
A key component of this collaboration is leveraging Reefy’s extensive network of 220 branches across the country. This strategic approach ensures that the financing can effectively reach target groups in all governorates, including remote villages and rural communities that are often underserved by traditional financial institutions.
Basel Rahmy highlighted MSMEDA’s commitment to partnering with specialized companies like Reefy, which possess the experience and infrastructure to meet the financing needs of these crucial economic segments.
Government Mandate for Job Creation
The initiative aligns directly with the Egyptian government’s directives to expand support for micro-enterprises, which are recognized as vital engines for job creation.
“The agency is working to expand financing for micro-enterprises because they play a vital role in generating job opportunities across various production, agricultural, and service sectors,” stated Rahmy. He further emphasized that this effort implements the guidance of Prime Minister Dr. Mostafa Madbouly to enhance employment opportunities for citizens and youth nationwide.
About MSMEDA
The Micro, Small, and Medium Enterprises Development Agency (MSMEDA) is an Egyptian governmental organization dedicated to developing and supporting the SME sector. It provides a comprehensive suite of financial and non-financial services to foster entrepreneurship, create jobs, and contribute to the national economy.
About Reefy
Reefy is a leading microfinance institution in Egypt that provides accessible and responsible financial services to micro and small business owners. With a wide-reaching network of branches, Reefy is committed to promoting financial inclusion and empowering entrepreneurs, particularly in underserved communities.
Source: Waya
