Egypt's MSMEDA and AAIB Ink EGP 150M Deal to Boost SME Lending, Focus on Industry & Women Entrepreneurs
The Arab African International Bank (AAIB) and Egypt's Micro, Small, and Medium Enterprise Development Agency (MSMEDA) have signed an EGP 150 million financing agreement aimed at significantly enhancing lending to Small and Medium Enterprises (SMEs) across the nation. This initiative will specifically target productive, export-oriented, and industrial businesses, with a special emphasis on new projects and women-led ventures in all Egyptian governorates.
EGP 150M Injection to Fuel Egyptian SMEs
In a move to bolster Egypt's SME sector, the Arab African International Bank (AAIB) has partnered with the Micro, Small, and Medium Enterprise Development Agency (MSMEDA) to provide EGP 150 million in fresh financing. This capital is designated for SMEs, particularly those contributing to Egypt's industrial and export capabilities.
Strategic Focus: Industrial Growth, Exports, and Inclusion
The financing agreement is strategically designed to support key areas of economic development:
Productive and Industrial Businesses: Prioritizing enterprises that can contribute to local manufacturing and value addition.
Export-Oriented SMEs: Supporting companies that can boost Egypt’s trade capacity and bring in foreign currency.
Job Creation: Focusing on businesses that have the potential to generate significant employment opportunities.
Women-Owned Businesses: A special emphasis is placed on empowering and financing ventures led by women entrepreneurs.
New Projects: Encouraging the establishment and growth of new enterprises.
Aligning with National Economic Strategy
This initiative directly aligns with directives from Prime Minister Mostafa Madbouly to expand financing avenues for MSMEs, recognizing their crucial role in increasing production, creating jobs, and developing the national economy. It also supports Egypt's broader push to localize industry and expand its productive capacity. MSMEDA has been actively working with banks and financial institutions to decentralize access to finance, ensuring that support reaches underserved areas and marginalized groups.
AAIB's Expanding Commitment to SMEs
The Arab African International Bank (AAIB) has a growing commitment to the SME sector. Its existing portfolio in this segment has reportedly surpassed EGP 10 billion, having grown fourfold, with over 800 SMEs currently on its books. The bank notes a rising number of industrial clients and is also keenly eyeing exporters as part of its strategy.
Loan Program Details
Under this new EGP 150 million agreement:
Small projects can borrow up to EGP 15 million.
Medium-sized projects can access financing up to EGP 30 million. The funds are versatile and can be used to cover a range of business needs, including the purchase of machinery and equipment, as well as working capital, with a clear priority for new ventures and those led by women.
About MSMEDA (Micro, Small, and Medium Enterprise Development Agency)
MSMEDA is the primary governmental body in Egypt responsible for formulating and implementing national programs and policies for the development of micro, small, and medium-sized enterprises. It plays a crucial role in fostering entrepreneurship and supporting the growth of the SME sector.
Looking Ahead: Targeted Capital for Industrial Growth
This EGP 150 million financing deal between MSMEDA and AAIB is more than just a general SME loan facility; it represents targeted capital aimed at stimulating real industrial growth and fostering a more inclusive and export-oriented SME sector in Egypt. The success of this initiative is expected to contribute significantly to the nation's economic development goals.
Source: Waya Media