MSMEDA, Banque du Caire sign EGP500m microfinance contracts

Egypt’s Medium, Small, and Micro Enterprise Development Agency (MSMEDA) signed two contracts with Banque du Caire worth a combined 500 million Egyptian pounds on Wednesday to finance micro-enterprises nationwide.

The agreements provide loans of up to 500,000 Egyptian pounds per beneficiary, supporting business expansion, productivity improvements, and access to foreign markets.

The first contract targets micro-entrepreneurs in the informal sector, encouraging their transition to the formal economy to benefit from state incentives. The second focuses on existing micro-enterprises seeking development, expansion, or renewal, offering soft loans to enhance operational efficiency and competitiveness.

The contracts are set to finance around 5,300 projects across all governorates, prioritising vulnerable groups and assisting them with funding, paperwork, and procedures.

MSMEDA CEO Basil Rahmy said the agreements align with directives from the political leadership to expand micro-enterprise funding, support women and youth, and integrate entrepreneurs into the formal economy.

Banque du Caire Deputy CEO Bahaa El Shafie highlighted the bank’s 20 years of experience in microfinance, which has helped create 1.3 million jobs and projects, with Upper Egypt accounting for 51 per cent of clients, women 35 per cent, and youth 54 per cent. He added that the bank offers tailored products to support Egypt’s Vision 2030 goals for sustainable development and financial inclusion.

MSMEDA Deputy CEO Mohamed Medhat noted that since 2012, MSMEDA and Banque du Caire have financed over 862,000 micro-enterprises with a total value of around 16.5 billion Egyptian pounds, including revolving loans worth 4.3 billion Egyptian pounds distributed through the bank’s nationwide branches.

Attribution: Amwal Al Ghad English
Subediting: M. S. Salama