(MENAFN- Daily News Egypt) Ahmed Issa, Deputy CEO of Banque Misr, and Basel Rahmy, CEO of the Micro, Small, and Medium Enterprise Development Agency (MSMEDA), have signed a contract worth EGP 300m to support micro-projects focused on development and expansion. The agreement aims to provide loans for working capital, enabling increased production and income for these ventures.
Amr Demerdash, Head of the Small and Medium Enterprises and Microfinance Sector at Banque Misr, emphasized that the signing of the“Tamkeen 2” contract follows the significant success of the“Tamkeen” initiative in 2021. The earlier contract, valued at EGP 500m, benefited over 7,000 clients with micro-enterprises fully managed by Egyptians. This initiative was designed to boost production and support the national economy, reinforcing Banque Misr's commitment to fostering entrepreneurship.
Banque Misr continues to engage in numerous initiatives and agreements aimed at expanding SME financing, helping businesses grow, promoting financial inclusion, generating jobs, and driving economic growth. Additionally, these efforts align with the directives of the Central Bank of Egypt (CBE) and the state's goals to position SMEs as the driving force of Egypt's economic growth, while incorporating the informal economy into the formal sector.
Basil Rahmi, CEO of MSMEDA, highlighted the agency's efforts to implement the directives of Prime Minister Mostafa Madbouly and contribute to the government's comprehensive economic development plans. By expanding microfinance and collaborating with major banks and financial institutions, MSMEDA is working toward achieving these goals. Rahmi noted that this contract is part of MSMEDA's 2025 plan to inject additional financing into the micro-enterprise sector, which provides significant job opportunities and helps transition informal projects into the formal economy. This transition allows businesses to benefit from the Project Development Law 152/2020.
Rahmi also praised the ongoing collaboration between MSMEDA and Banque Misr, which plays a crucial role in supporting project owners across all Egyptian governorates. He pointed out that 40% of the available funding under this contract will be directed toward industrial projects, agricultural manufacturing, and related activities. This focus aligns with the state's efforts to increase reliance on local products and reduce imports.
Nevin Badr El-Din, Head of the Central Sector for Microfinance at MSMEDA, explained that the contract is expected to finance approximately 3,000 micro-projects across Egypt. The financing per project is estimated at EGP 500,000 for each beneficiary.
Through its business development service centers, Banque Misr is dedicated to supporting entrepreneurs and unlocking the potential of young people. The bank aims to increase the number of SMEs, assist emerging businesses, and strengthen existing companies in targeted economic sectors. These efforts contribute to enhancing local products and developing a national industry capable of competing internationally, underscoring Banque Misr's commitment to sustainable development and Egypt's prosperity.
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