The Micro, Small, and Medium Enterprises Development Authority (MSMEDA) and Erada for Micro Projects have entered into a significant financing agreement worth EGP 60 million, signed on January 19, 2025. This agreement aims to support micro-projects across Egypt by providing both technical and financial assistance, thereby contributing to the country’s economic development.
The partnership’s focus is to finance approximately 1,700 micro-projects, with each receiving up to EGP 242,000, depending on its specific financial requirements.
MSMEDA’s CEO, Basil Rahmi, emphasized that this collaboration is in line with Egypt’s broader strategy to empower the micro, small, and medium-sized enterprises (MSMEs) sector. MSMEs are vital to strengthening the Egyptian economy, particularly by fostering economic growth in underserved areas. Rahmi underscored the critical role this initiative will play in creating new economic opportunities and jobs in these regions.
The agreement is part of MSMEDA’s continuous efforts to broaden its network of microfinance partners, aiming to provide newly established enterprises with the necessary funds to extend financial assistance to final beneficiaries. By strengthening these financial flows, the initiative ensures a sustainable cycle of economic development.
Mariann Gali, Chairperson of Erada for Micro Projects, highlighted that this partnership supports the company’s long-term vision of maximizing investment in micro-projects, particularly those within the agricultural and production sectors. Gali reiterated that Erada is committed to driving sustainable economic growth by empowering local communities and creating a positive economic impact throughout Egypt.
Head of the Microfinance Central Sector at MSMEDA, Nevine Badr El-Din, noted that this is not the first collaboration between the two entities. In November 2023, MSMEDA had previously provided 100 million Egyptian pounds in financing to Erada, which supported 3,400 micro-projects and resulted in the creation of approximately 6,644 job opportunities. Women led 52% of the funded projects, while 46% were led by youth under the age of 35. Furthermore, the production and industrial sectors received approximately 8% of the total loans, reflecting the diverse and impactful nature of the funding.
This agreement marks another key milestone in the ongoing effort to promote inclusive economic growth in Egypt through the support of MSMEs. By strengthening access to microfinance and promoting job creation, MSMEDA and Erada are playing a vital role in fostering sustainable development in Egypt’s economy.
