CEO of the Micro, Small and Medium Enterprise Development Agency (MSMEDA), Bassel Rahmi, and Chairman of Al Ahly Capital for Microfinance (Tamkeen), Karim Saada, signed a financing agreement worth LE300 million on Sunday.
The move is part of the state strategy to integrate all economic entities into the formal system and to encourage and incentivise owners of microenterprises to operate within the official framework.
Under the agreement, MSMEDA will provide the funding to Tamkeen as part of the Ministry of Finance’s initiative aimed at integrating businesses into the formal sector and enabling them to benefit from state laws that support investment.
The new step is part of the ongoing co-operation with the National Bank of Egypt, one of the country’s largest national banks, to provide broad support for the enterprise sector, Rahmy said.
The deal goes in line with MSMEDA’s plans to expand the network of partnering microfinance companies and increase the microfinance portfolio dedicated to supporting, developing, and launching microenterprises across all governorates, he added.
The agreement with Tamkeen is expected to encourage owners of microenterprises to join the formal economy, benefit from available incentives, open tax files for their activities, and expand employment and production opportunities, he added.
Around 3,000 microenterprises are expected to benefit from the initiative.
