The Micro, Small and Medium Enterprise Development Agency (MSMEDA) has signed a new microfinance contract worth EGP 400m with Tasaheel for Small, Medium and Micro Enterprise Finance, aiming to expand funding for micro-scale projects across Egypt. The agreement was signed by Nevine Badr El-Din, Head of the Central Microfinance Sector at MSMEDA, and Mounir Nakhla, Chairperson of Tasaheel, in the presence of MSMEDA CEO Bassel Rahmy and Deputy CEO Mohamed Medhat. Rahmy affirmed MSMEDA's ongoing efforts to broaden access to microfinance through partnerships with a wider network of microfinance institutions. This initiative, he said, supports self-employment and the establishment of productive, sustainable businesses that generate decent job opportunities. He explained that the contract is designed to finance both newly established and existing micro-enterprises, helping them to expand, upgrade operations, and purchase equipment. This, in turn, is expected to contribute to increased productivity and job creation—both permanent and temporary—across various sectors. According to Rahmy, the agreement is projected to finance around 8,000 micro-enterprises, with average funding estimated at EGP 266,000 per project, depending on the specific needs of each enterprise. Funds may be used for working capital or investment in fixed assets such as machinery. He noted that this initiative is part of MSMEDA's broader 2025 strategy to scale up micro-enterprise financing, a critical driver of employment generation in Egypt. It aligns with the directives of Prime Minister Mostafa Madbouly, who chairs the agency's board, to increase the sector's contribution to the national economy—particularly in local manufacturing and agriculture. Mounir Nakhla expressed pride in Tasaheel's continued partnership with MSMEDA, describing it as a successful model of public-private cooperation aimed at empowering micro-entrepreneurs. "This agreement will help improve the quality of life for Egyptian families by creating sustainable jobs across governorates and driving inclusive economic development," he said. Nevine Badr El-Din highlighted the success of previous contracts between the two parties. The first agreement, signed in 2017, financed 2,257 micro-enterprises with a total value of EGP 28m, with women representing 52% of beneficiaries. Under the second agreement in 2022, approximately 37,459 micro-enterprises received a combined total of EGP 307m, again with over 50% of the recipients being women.
