(MENAFN- Daily News Egypt) The Micro, Small, and Medium Enterprises Development Agency (MSMEDA) has signed a new EGP 25m contract with Aman Holding to strengthen support for handicraft and heritage projects through the“Hirfa” microfinance initiative.
According to a statement from MSMEDA on Sunday, the contract was signed by Nevine Badr El Din, Head of the Central Microfinance Sector at MSMEDA, and Hazem Moghazy, CEO of Aman Holding, in the presence of MSMEDA CEO Basel Rahmy.
Rahmy highlighted MSMEDA's commitment to enhancing cooperation with all development partners, especially non-banking financial institutions within the private sector, to support the state's strategy to develop and expand financing for microenterprises. This initiative encourages self-employment, reduces unemployment, improves living standards, and focuses on handicrafts and heritage industries known for their potential to create intensive employment opportunities. Rahmy noted that this aligns with the presidential initiative,“A New Beginning to Build People,” which aims to empower citizens-especially women and youth-to pursue self-employment, engage in entrepreneurship, and develop existing projects.
Rahmy explained that the new contract with Aman is part of a broader strategy to develop the handicrafts and heritage sector, support businesses within this vital field, and help artisans grow their enterprises to generate more job opportunities. Additionally, this partnership seeks to empower women and improve living standards.
The EGP 25m fund will be available to microenterprises with tax ID and commercial registration documents, to assist in launching new projects or scaling up and modernizing existing ones. The initiative will also focus on financing handicrafts and heritage industries within Egypt's production hubs, especially in border governorates and underserved areas. Rahmy projected that around 250 beneficiaries, particularly within production clusters, would benefit from this contract, helping heritage and handicraft projects compete, sustain operations, and transition from the informal to the formal economy.
Nevine Badr El Din noted that this contract supports MSMEDA's goal to expand its partnerships with intermediary entities, introduce new products, and increase MSMEDA's finance portfolio to back the growth of microenterprises. The funds will be accessible to target groups seeking to develop existing projects or start new ones, with provisions to finance machinery and equipment through the contract.
Hazem Moghazy, CEO of Aman Holding, expressed pride in renewing this partnership with MSMEDA. He emphasized Aman's commitment to supporting young graduates and artisans, particularly female breadwinners, describing this as a pivotal step towards enhancing financial and social stability. Such initiatives, he explained, not only improve living standards for targeted groups but also play a crucial role in creating new jobs, contributing to local economic development, and fostering a more inclusive and sustainable society.
Moghazy explained that this collaboration is part of Aman's efforts to expand its financial services, with a focus on supporting microenterprises and artisans through its network of 212 finance branches. Aman Holding aims to promote microfinance as an effective tool for empowering individuals and small business owners with the financial support needed to launch and develop their projects, opening new avenues for employment and fostering sustainable economic growth in Egypt.
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