Egypt’s MSMEDA, KfW sign €30 mln financing deal for microenterprises

Egypt’s Micro, Small, and Medium Enterprises Development Agency (MSMEDA) has signed a €30 million financing agreement with German development bank KfW to support microenterprises, according to a government statement on Thursday.

More than 80 per cent of the financing will be directed to Egypt’s border governorates, Upper Egypt, and rural areas, targeting regions where access to finance remains more limited.

The agreement, signed under a project supporting the private sector and innovation, aims to expand access to financing for microenterprises across Egypt and strengthen their contribution to economic growth, MSMEDA said in a statement.

More than 60 per cent of beneficiaries are expected to be women, while the financing will target underserved groups and regions as part of efforts to promote financial inclusion, MSMEDA CEO Mostafa Hassan said.

The programme will finance microenterprises across various economic activities, particularly productive businesses, while supporting informal businesses seeking to transition into the formal economy, Hassan said.

The financing is expected to help existing businesses maintain and expand their operations and create decent and sustainable jobs for young people, recent graduates and women, he added.

Women entrepreneurs with existing businesses will also have greater access to financing to develop and expand their operations under the programme.

The programme forms part of an ongoing partnership between Egypt, the German government and KfW to develop the country’s micro, small and medium-sized enterprise sector, which the government regards as an important source of economic growth, employment and improved living standards.

Subediting: Y.Yasser