Egypt’s MSMEDA secures €30m KfW funding for microenterprises

Egypt’s Micro, Small and Medium Enterprise Development Agency (MSMEDA) has signed a €30 million financing agreement with the German Development Bank (KfW) under the Private Sector and Innovation Support project. The funding aims to expand financing for microenterprises and support their growth.

The agreement will finance microenterprises across various economic activities, particularly productive projects, while supporting informal businesses in their transition to the formal economy. It will also expand access to financing for women business owners to develop and grow their enterprises.

The new funding is expected to help business owners sustain their operations and create more decent and sustainable job opportunities for young people, recent graduates and women.

Women are expected to account for more than 60 per cent of total beneficiaries, while over 80 per cent of the funding will be directed to border governorates, Upper Egypt and rural areas, as part of MSMEDA’s efforts to promote financial inclusion and support the most vulnerable groups and regions.

The project forms part of the ongoing partnership between Egypt, the German government and KfW, supporting national efforts to develop the micro, small and medium-sized enterprise sector, boost economic growth, create jobs and improve living standards.