MSMEDA, Erada sign EGP60m microfinance deal
The Micro, Small, and Medium Enterprises Development Authority (MSMEDA) and Erada for Micro Projects have signed a financing agreement worth 60 million Egyptian pounds on Sunday. This funding is set to provide micro-projects with both technical and financial support, contributing to economic growth and development.
The partnership aims to finance approximately 1,700 micro-projects, with each project receiving up to 242,000 pounds based on its financial requirements. The focus will primarily be on production and agricultural projects to meet the demands of the local market.
Basil Rahmi, CEO of MSMEDA, stated that the agreement aligns with Egypt’s national strategy to bolster the micro, small, and medium-sized enterprises (MSMEs) sector, which is crucial for strengthening the economy. He highlighted that this collaboration would create significant opportunities for economic development, particularly in underserved regions.
The agreement is part of MSMEDA’s ongoing efforts to expand its network of microfinance partners and assist newly established companies in re-lending these funds to final beneficiaries.
Mariann Gali, Chairperson of Erada, expressed that the partnership aligns with the company’s vision of maximizing investment in micro-projects as a driving force for economic growth. She emphasised Erada’s focus on supporting the productive and agricultural sectors and fostering sustainable investment to empower communities and strengthen Egypt’s economy.
Nevine Badr El-Din, Head of the Microfinance Central Sector at MSMEDA, noted that this is not the first collaboration between MSMEDA and Erada. In November 2023, MSMEDA provided 100 million pounds in financing to Erada, which supported 3,400 micro-projects and created approximately 6,644 job opportunities. Women led 52 per cent of the funded projects, while youth under 35 accounted for 46 per cent. Additionally, production and industrial sectors received around 8 per cent of the total loans.
Attribution: Amwal Al Ghad English
Subediting: Y.Yasser