In a strategic move to enhance the funding ecosystem for small and medium-sized enterprises (SMEs), Egypt’s Medium, Small and Micro Enterprises Development Agency (MSMEDA) has signed an EGP 30 million financing agreement with Flind, the country’s first licensed digital non-bank financial institution focused exclusively on SMEs. The deal is backed by the World Bank under its Entrepreneurship Support for Job Creation initiative.
The agreement was signed by Osama Bakry, Head of the Central SME Financing Sector at MSMEDA, and Ahmed Zaky, Managing Director of Flind, in the presence of MSMEDA CEO Bassel Rahmy, Deputy CEO Mohamed Medhat, and senior representatives from both entities.
Expanding Access to Finance for Egypt’s Entrepreneurs
Rahmy underscored the agreement as part of MSMEDA’s broader mission to increase SME access to flexible financing tools, particularly in the industrial and production sectors across all Egyptian governorates. “We are committed to enabling a more inclusive economy through diversified lending channels—whether directly or through digital intermediaries,” he said.
The financing program, he added, is designed to support business expansion, machinery upgrades, and productivity enhancement, while simultaneously creating sustainable jobs—with a focus on youth, women, and recent graduates. Individual loans will range between EGP 100,000 and EGP 5 million, depending on project needs.
Flind: Egypt’s Pioneer in Digital SME Lending
Flind’s Managing Director Ahmed Zaky described the partnership as a milestone in digital finance for development. “This collaboration with MSMEDA reflects our shared vision of closing the financing gap that hampers SME growth through accessible, tech-driven lending solutions,” Zaky said.
He revealed that Flind aims to inject EGP 1 billion into Egypt’s SME sector during its first operational year, with a strong focus on short-term, digitally processed loans. Using AI-powered risk assessment, simplified application procedures, and real-time tracking tools, Flind is setting a precedent in streamlined, equitable, and scalable SME finance.
A New Model for Public-Private Development Finance
This initiative marks a paradigm shift in how Egypt supports entrepreneurship—melding public funding mechanisms with private-sector innovation to address persistent access-to-capital challenges. The World Bank’s involvement ensures international standards of transparency and impact measurement, while leveraging the agility of fintech solutions.
The move comes amid wider economic reforms aimed at strengthening Egypt’s private sector, where SMEs represent over 75% of employment and are critical to GDP growth and job creation. With digital financing emerging as a cornerstone of financial inclusion, partnerships like this are expected to accelerate Egypt’s vision for a tech-enabled, inclusive economy.
