MSMEDA, Enmaa Finance Sign $3M Agreement To Boost Egyptian Exports
(MENAFN- Daily News Egypt) Basel Rahmi, CEO of the Micro, Small, and Medium Enterprises Development Agency (MSMEDA), and Tarek El Fayoumi, CEO and Managing Director of Enmaa Finance, have signed a $3m financing agreement aimed at supporting small and medium-sized exporters with foreign currency receivables. This financing will be provided through Enmaa Finance using the international factoring system.
Rahmi stated that this agreement aligns with the directives of Prime Minister Mostafa Madbouly to support export-oriented projects by meeting their needs and helping them access international markets. The goal is to provide the necessary dollar liquidity to enable these projects to procure raw materials and production supplies, thereby allowing them to sustain and expand their operations, enhance their production capabilities, and continue exporting local products to new markets.
The financing provided to Enmaa Finance is part of the World Bank-supported“Catalyzing Entrepreneurship for Job Creation” project. It will be used as a revolving fund to offer short-term loans to existing small and medium-sized enterprises (SMEs) engaged in export activities. These loans will be used for factoring export shipment documents through the international factoring system.
Rahmi emphasized that the target clients for this agreement are exporters with foreign currency receivables. The financing will be available exclusively to final beneficiaries involved in activities that require foreign currency for importing raw materials and production inputs.
The CEO of MSMEDA noted that the financing contract covers a diverse range of projects across all governorates in Egypt, with a maximum funding limit of EGP 15m for small enterprises and EGP 30m for medium enterprises per exporter.
On his part, El Fayoumi highlighted that the dollar-denominated financing from MSMEDA was in line with the national agenda to support Egyptian exports. This initiative encourages exporters to stabilize and grow by providing short-term financing under the international factoring system, which is crucial for funding the working capital of beneficiary projects. He also praised the collaboration with MSMEDA, marking it as a significant first-time partnership.
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