Egypt: SMEDA Signs EGP 150m Contract for Microlending with Banque du Caire

Jun 2017
Egypt, June, 19 2017 - Executive Director of the Small and Medium Enterprise Development Authority (SMEDA),Nevine Al Gamea, and the chairman of Banque du Caire,Mounir El Zahid, have signed a contract for a project that aims to improve incomes, as well as marketing abilities through the provision of micro loans, for a total of EGP 150m within the framework of the agreement of the International Fund for Agricultural Development (IFAD).

The project goal is to finance existing projects by carrying out developments, expansions, and restoration through the provision of loans that help these projects continue and compete. The projects provide permanent and temporary jobs and work to increase production and income that will leave a positive impact on the lives of the owners of these projects or those working in them.

Signing this contract is part of the authority’s plan, is in cooperation with development partners, supports the initiative launched by the Central Bank of Egypt (CBE) and the Egyptian Microfinance Federation (EMF), while still paying special attention to women and young people. The percentage of projects allocated for women in the contract is 35% of the total financing, according to Gamea.

She added that the amount of the loan is estimated at EGP 30,000. About 15,000 micro projects will be financed during the implementation process of the project in the governorates of Qena, Souhag, Assiut, Minya, Beni Suef, Beheira, and Kafr El Sheikh.

The volume of the contracts concluded between Banque du Caire and SMEDA since 2012 has reached EGP 1.149 and is used as revolving loans through which 253,000 micro projects have been financed through the branches of the bank spread across the country. Several other contracts are supposed to be entered into soon.

Source : Daily News Egypt

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