Rania Al-Mashat, Minister of International Cooperation, witnessed the signing of a financing agreement between the Saudi Arabia Grant Management Committee (SAGMC) and the Micro, Small, Medium Development Agency (MSMEDA), at a value of EGP 150m.
The agreement aims to enhance MSME financing and was signed on the sidelines of the committee’s meetings in Cairo that were held Over the course of three days, at the headquarters of the Ministry of International Cooperation.
Al-Mashat said that the agreement was a continuation of the role played by the constructive partnership with the Kingdom of Saudi Arabia to support and develop SMEs through soft development funds for the intermediaries responsible for financing these projects. It enhances the vital role played by MSMEDA in light of the country’s vision to promote inclusive and sustainable growth, job creation and employment, and encourage entrepreneurship.
She added that the total funds provided by the Kingdom of Saudi Arabia Grant Management Committee to finance MSMEs since the beginning of its work amounted to about EGP 1.5bn, which contributed to the financing of 3,524 projects in 27 governorates, generating about 17,000 job opportunities in the development sectors represented in industry, agriculture and livestock, health care, solar energy and the commercial sector. The aforementioned agreement is a continuation of the cooperation relations between the committee and the agency, as this is the third agreement to be signed between the two sides, as two financing agreements worth EGP 350m were previously signed.
Basil Rahmi, CEO of MSMEDA, said that this new cooperation will pump financing amounting to EGP 150m for small and micro projects related to supporting industrial projects in all governorates and focusing on value chains in order to provide raw materials and various requirements necessary for production.
Rahmi added that this new financing is a continuation of the previous cooperation with the Saudi Fund in supporting the SMEs sector in Egypt and maximizing its economic and social role.
The signed agreement aims to finance SMEs related to supporting supply chains, in addition to industrial projects in all governorates of the Republic by providing funds for about 520 beneficiaries that will contribute to creating about 1,200 job opportunities. This comes within the framework of efforts to support these projects as a major player in the advancement of the Egyptian economy.
The most prominent intermediary bodies that obtained funds from the Saudi grant were the National Bank of Egypt (NBE), the Agricultural Bank of Egypt (ABE), the Industrial Development Bank, and MSMEDA, in addition to the beneficiaries of direct grant financing, the most prominent of which is the EFG Hermes Leasing, Inmaa Financial Leasing Company, Plus Company for Financial Leasing, ValU for Installment Sales Services, Global Lease Company for Financial Leasing, UE Finance Company for Financial Leasing, Contact Company for Financial Leasing and others.