Egypt’s Micro, Small, and Medium Enterprises Development Agency (MSMEDA) and Banque du Caire have signed a contract worth EGP 500m for the Tamkeen Microfinance project, which will see the latter provide financing for micro projects across Egypt.
The contract was signed by Tarek Shash, Executive Vice President of MSMEDA, and Hazem Hegazy, Vice Chairperson of Banque du Caire.
It was witnessed by Minister of Trade and Industry and MSMEDA Executive Director Nevine Gamea and Tarek Fayed, Chairperson of Banque du Caire.
Gamea said that according to this contract, 10,000 loans will be provided in various governorates, which will provide thousands of job opportunities.
The minister noted that this contract allows for the limit of loans provided to micro-projects to be raised to EGP 500,000, based on its production and marketing capabilities.
She added that increasing the funding provided to micro-projects will provide a strong impetus to this sector, and will work to expand the establishment of these projects and develop their capabilities.
This will, in turn, positively reflect on providing more job opportunities, especially in the border areas, Upper Egypt, and the villages targeted by the “Decent Life” presidential initiative.
Gamea praised the close cooperation between MSMEDA and Banque du Caire in the field of financing micro-projects, which began in 2012. The volume of funds provided to the bank has so far reached EGP 3.3bn, which have been used as revolving loans to finance about 612,000 micro-projects.
This has come at an amount of EGP 8.5bn through Banque du Caire branches located all over the country.
For his part, Fayed affirmed that the bank’s visions and policies are primarily aimed at supporting the state’s plans to support micro, small, and medium enterprises (MSMEs), because of their critical importance towards achieving sustainable development.
Fayed said that the bank has over 19 years contributed to providing about 1.3 million job opportunities, and a sustainable production project that serves various segments, most notably youth and female breadwinners.
Shash said that microfinance is one of the most important axes on which MSMEDA relies to reach the largest possible number of target groups in various governorates. It is also a method through which target groups can work to improve their standard of living, in cooperation with various intermediary agencies, the most important of which are banks and NGOs.
He added that during the first third of 2021, the agency pumped a total of EGP 868.1m of funding to micro-projects, which provided more than 75,000 job opportunities.
Hazem Hegazy, Vice Chairperson of Banque du Caire, stressed that the bank’s distinction in this field is due to its geographical spread, especially in the governorates of Upper Egypt. This accounts for 53% of the bank’s clients, whilst women account for 35% of the total number of clients and youth for 40%.
Hegazy added that Banque du Caire is working to launch innovative technological banking solutions and services for micro-enterprise customers, which contribute to saving time and effort. This is through the mechanisation of microfinance, in addition to launching the service of accepting electronic payments on the mobile phone wallet through the QR Code.