(MENAFN- Daily News Egypt) The Micro, Small, and Medium Enterprises Development Agency (MSMEDA) and ERADA Microfinance have signed a contract to finance micro-projects worth EGP 100m in various governorates of Egypt.
The contract was signed by Nevine Badr El-Din, Head of the Central Microfinance Sector at MSMEDA, and Amr Abo El-Azm, Founding Partner, Deputy Chairperson and CEO of ERADA, in the presence of Marian Ghaly, Chairperson of ERADA, and Basil Rahmi, CEO of MSMEDA.
Rahmi said that the contract aims to support the state's strategy to promote micro-enterprises and expand their financing, which would create more job opportunities and reduce unemployment. He added that the contract also reflects MSMEDA's interest in cooperating with microfinance companies in the Egyptian market to increase the microfinance portfolio.
According to the contract, ERADA will re-lend financing to final borrowers who have experience or wish to develop existing projects to finance working capital and purchasing machinery and equipment. The expected number of beneficiaries is 3,000, both male and female, with a focus on women and youth in marginalized areas. The maximum financing for one project is EGP 220,000, depending on the financing need.
Abo El-Azm said that the contract will enhance financial inclusion and micro-enterprise finance, as well as the social dimension and youth empowerment. He also mentioned that ERADA is an Egyptian company established in 2022 in partnership between Etisalat Misr and the Sovereign Fund of Egypt, which has provided funds exceeding EGP 300m to 13,000 young people within six months.
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