CAIRO – 2 June 2020: The Micro, Small and Medium Enterprises Development Agency (MSMEDA) aims to fund about 200,000 micro-loans during 2020, with a total financing of LE 3 billion, Minister of Trade and CEO of MSMEDA Nevein Gamea said Tuesday.
Gamea added in a statement that the agency has financed about 240,000 micro-projects from the beginning of 2019 until the end of last April, with a total funding of LE3.5 billion, which has provided about 360,000 job opportunities.
She stated that the agency, in cooperation with the Egyptian Federation for Microfinance, developed and rehabilitated 6 civil associations in five governorates to raise their financial and administrative performance, train and qualify the workers in these associations to deal professionally with the masses and provide all aspects of assistance to youth and citizens wishing to set up micro projects or owners of projects wishing to expand and develop Their projects.
She emphasized the importance of developing these associations because they are the most able to reach various groups of society, especially in border governorates, Upper Egypt and rural communities, and help them finance and set up micro-projects that provide them and others with excellent job opportunities and economic income.
From her part, Chairman of the Egyptian Federation for Microfinance, Mona Zulfikar, praised the results of continuous cooperation with the MSMEDA in all fields concerned with the development of micro-projects.
She pointed out that the promotion of a number of NGOs is one of the most important projects of the Union to increase the base of the beneficiaries of the microfinance services, as the NGOs and institutions have proven to be the most able to reach the beneficiaries of the owners of the micro-projects and meet their needs in various parts and regions of Egypt, where the NGOs provide their services.
“The number of beneficiaries exceeds 2 million, out of the total number of 3.5 million beneficiaries at the end of 2019,” she said.
The federation is also working on completing the institutional upgrade project for about 40 associations as it is one of the most important tools for expanding the base of financial inclusion, with basic support from the Central Bank of Egypt, and with the support of the Financial Supervision Authority and the MSMEDA.
Meanwhile, Head of the Central Sector for Microfinance at MSMEDA Nevein Badr said that the associations that have been trained and rehabilitated or funded to increase the portfolio for the possibility of obtaining a license for the higher category are the Egyptian Family Development Foundation in Aswan and the Nahdah Beni Suef Foundation in Beni Suef Governorate and the Egyptian Association for Comprehensive Development in Giza and Fekra Association in Minya, (Alashanak Ya Baladi) Association and the Association for the Advancement and Development of Women in Cairo Governorate.
She explained that this allows these associations and institutions to increase their financial portfolio, ranging from LE 10 million to LE 50 million, and thus increase the funding allocated to micro-projects in these governorates.