(MENAFN- Daily News Egypt) Basel Rahmy, CEO of the Micro, Small and Medium Enterprise Development Agency (MSMEDA), announced that the final procedures are underway for establishing Khutwa Financing Company. MSMEDA will hold a 40% stake in the company, in partnership with major financial institutions in Egypt.

Speaking during a panel discussion at the 28th Cairo ICT exhibition and conference, Rahmy stated that the establishment of the company aligns with directives from President Abdel Fattah Al-Sisi. The aim is to create financing companies prioritizing industrial and productive projects while offering tailored financial services to youth, entrepreneurs, and business owners. These services will meet financing needs with optimal credit mechanisms and associated support to enhance production capacity and foster business growth and development opportunities.

Rahmy noted that this initiative also follows close oversight by Prime Minister Mostafa Madbouly, who chairs MSMEDA's Board of Directors, to modernize the agency's operational mechanisms. It seeks to strengthen collaboration with relevant institutions supporting the small and micro-enterprise sector.

Khutwa was established in partnership with e-finance for Financial and Digital Investments and Misr Insurance Company. Rahmy emphasized that SMEDA aims through this venture to directly support project owners across various sectors, with a particular focus on productive businesses. The company will simplify lending mechanisms, reduce financing costs, and maximize the benefits of financial services for project owners amidst Egypt's current economic progress.

The company will provide financing solutions to clients within a maximum of five days, conducting financial and market feasibility studies for the client and their projects with streamlined procedures. This efficiency is attributed to the digital payment solutions provided by partners like e-Finance, a leader in the field, and Misr Insurance, the largest insurance company in Egypt.

Rahmy highlighted that the new company will operate according to private-sector standards for small and microfinancing, placing clients as its top priority. It will ensure swift, competitive, and high-quality service delivery, offering accessible, digital financing mechanisms and a variety of financial products tailored to diverse client needs. The company also aims to build trust with project owners.

According to Rahmy, the company plans to establish 12 point-of-sale branches across Egypt initially, to expand to 70 branches by its fourth year of operation.

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