Arab Finance: The Micro, Small, and Medium Enterprises Development Agency (MSMEDA) signed two financing agreements worth EGP 350 million with Tamweely Financial Services to expand financing for micro-enterprises, support around 3,000 projects, and encourage businesses to join the formal economy, as per a statement.

The agreements come as part of MSMEDA's strategy to expand its microfinance portfolio and support the state's plans to promote micro-enterprises and integrate them into the formal sector, in cooperation with the Ministry of Finance and the Egyptian Tax Authority (ETA).

The initiative aims to encourage self-employment, create more job opportunities, and enable businesses to benefit from incentives available under investment-supporting legislation.

MSMEDA's CEO Basel Rahmy said the new agreements form part of MSMEDA's efforts to expand cooperation with specialized financing companies, allowing the agency to provide financing for young graduates seeking to establish new businesses across various economic sectors while helping existing project owners expand their operations through working capital and financing for machinery and equipment.

He added that the first agreement, valued at EGP 100 million, is being implemented in coordination with the Ministry of Finance and ETA. The financing will support projects seeking to enhance their productive capacity while encouraging their owners to formalize their businesses, helping ensure sustainability and creating additional employment opportunities.

According to Rahmy, the second agreement, worth EGP 250 million, is designed to finance the establishment of new micro-enterprises and support the expansion, modernization, and upgrading of existing businesses, strengthening their productive capacity and contribution to economic development.

The two agreements are expected to finance approximately 3,000 projects, with financing of up to EGP 292,000 per project.