MSMEDA extends EGP 300m in microfinance to Tamkeen to support small enterprises

“The Micro, Small and Medium Enterprise Development Agency (MSMEDA) has signed a financing agreement worth EGP 300m with Tamkeen Microfinance, the microfinance arm of Al Ahly Capital, to expand funding for micro-enterprises across Egypt. The agreement was signed by Bassel Rahmy, CEO of MSMEDA, and Karim Saada, Chairperson of Tamkeen, enabling MSMEDA to channel financing through Tamkeen to end beneficiaries. The initiative falls within the state’s broader strategy to integrate economic activity into the formal economy, encourage micro-entrepreneurs to regularise their operations, and support the growth and expansion of micro-enterprises. It also aims to promote self-employment, reduce unemployment, improve living standards, and contribute to inclusive economic development. Rahmy said the agreement reflects continued cooperation with the National Bank of Egypt to strengthen support for the enterprise sector. It also aligns with MSMEDA’s efforts to expand its network of partner microfinance institutions, grow its lending portfolio, and support the establishment and development of micro-enterprises across all governorates. He added that MSMEDA is coordinating with the Ministry of Finance and the Egyptian Tax Authority to ensure that beneficiaries can access tax incentives under Law No. 6 of 2025. These measures are designed to enhance business sustainability, simplify procedures, and improve integration into the formal labour market. Rahmy noted that the partnership with Tamkeen is expected to incentivise micro-entrepreneurs to formalise their activities, open tax files, and benefit from available incentives—ultimately boosting productivity and job creation. Under the agreement, Tamkeen will on-lend the finance to end users, including young graduates and experienced entrepreneurs seeking to expand existing businesses. The financing will support working capital needs and the acquisition of machinery and equipment, with around 3,000 micro-enterprises expected to benefit. Saada said the facility will enable the company to provide concessional financing to a wider client base, promote financial inclusion, support entrepreneurship, and help address unemployment. He added that the funding will also contribute to formalising informal businesses and creating job opportunities for thousands of young graduates and female breadwinners. The post MSMEDA extends EGP 300m in microfinance to Tamkeen to support small enterprises first appeared on Dailynewsegypt .

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