Bassel Rahmy, Chief Executive Officer of the Micro, Small and Medium Enterprise Development Agency (MSMEDA), and Ahmed Khorshid, Chief Executive Officer, Managing Director and Deputy Chairman of Tamweely Financial Services, have signed two financing agreements under which MSMEDA will provide EGP 350m to Tamweely to implement two microfinance programmes.
The signing ceremony was attended by senior officials from both organisations, including Nesma El Gharably, Head of MSMEDA’s Central Microfinance Sector; Sahar Sultan, Head of MSMEDA’s Finance Sector; and from Tamweely, Ahmed El Araby, Board Member; Hossam Kassem, Chief Financial Officer; and Mohamed Mamdouh, Head of the Micro Business Sector.
The agreements form part of the state’s strategy to support the development of micro-enterprises. Implemented in cooperation with the Ministry of Finance and the Egyptian Tax Authority, the initiative aims to expand access to microfinance, promote self-employment and create additional job opportunities.
MSMEDA continues to support the state’s efforts to integrate micro-enterprises into the formal economy, enabling them to benefit from the services and incentives provided under investment-related legislation, thereby improving their sustainability and growth prospects.
Rahmy said the new agreements with Tamweely are part of MSMEDA’s strategy to expand its microfinance portfolio and strengthen cooperation with specialised finance companies, making financing available to young entrepreneurs, both men and women, seeking to establish new businesses across a wide range of economic activities.
He added that the financing will also help existing businesses expand through working capital facilities and funding for the purchase of machinery and equipment.
Rahmy explained that the first agreement, valued at EGP 100m, has been concluded in cooperation with the Ministry of Finance and the Egyptian Tax Authority. The financing will support projects aimed at strengthening productive capacity while encouraging business owners to join the formal economy, improving their sustainability and enhancing their ability to generate employment opportunities.
He added that the second agreement, worth EGP 250m, is designed to support the establishment of new micro-enterprises while enabling existing businesses to expand, modernise, replace outdated equipment and upgrade their operations, thereby increasing productivity and contributing to broader economic development.
The two agreements are expected to finance around 3,000 projects, with funding of up to EGP 292,000 per project.
For his part, Ahmed Khorshid, Chief Executive Officer, Managing Director and Deputy Chairman of Tamweely Financial Services, said the signing of the credit facility agreements with MSMEDA reflects the long-standing strategic partnership and mutual trust between the two organisations, while reinforcing Tamweely’s role in supporting Egypt’s non-bank financial services sector and expanding the number of beneficiaries.
Khorshid added that the EGP 350m in financing facilities will help expand funding for existing businesses with strong growth potential, boosting productivity, creating jobs and increasing the sector’s contribution to the national economy.
He stressed that one of the main objectives of the facilities is to support the integration of businesses operating in the informal economy into the formal sector by improving their access to regulated finance and financial services. This will help them formalise their operations, enhance operational efficiency and strengthen their long-term growth prospects.
Khorshid added that the initiative supports the state’s efforts to advance financial inclusion and reflects Tamweely’s commitment to its role as a development partner in supporting the formal economy and accelerating the integration of informal economic activities, in line with the objectives of Egypt Vision 2030.
