The Micro, Small and Medium Enterprises Development Agency (MSMEDA) signed on Thursday a separate agreement for the “Private Sector and Innovation Support” project, financed by Germany’s KfW Development Bank, with total funding of €30 million.
The agreement aims to support microenterprises, provide them with access to financing and strengthen their contribution to economic growth and development.
MSMEDA CEO Moustafa Hassan said the funding will support microenterprises across various economic sectors, particularly productive activities.
It will also help informal businesses join the formal economy and improve access to financing for women entrepreneurs seeking to expand their businesses, he added.
Hassan said the new financing would help businesses remain operational and create more decent and sustainable jobs for young people, recent graduates and women.
He added that MSMEDA is working to promote financial inclusion and expand access to finance among underserved groups and areas.
Under the agreement, women are expected to account for more than 60% of beneficiaries, while more than 80% of the financing will be directed to border governorates, Upper Egypt and rural areas.
The project is part of the ongoing partnership between Egypt, the German government and KfW to support the development of the micro, small and medium enterprise sector, a key driver of economic growth, job creation and improved living standards.
