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MSMEDA and Banque Misr Sign a New Micro Financing Contract Valued EGP 500 Million
05/10/2020

In alignment with the state’s efforts in expanding the financing of micro enterprises towards reducing unemployment, advancing the national economy and mitigating the detrimental impact of COVID-19, Dr. Nevin Gameh – Minister of Trade and Industry and Chief Executive Officer of the Micro, Small and Medium Enterprises Development Authority – and Mr. Mohamed El-Etreby – Chairman of the Board of Directors of Banque Misr – signed the contract of the “Initiative for Micro Financing Project”, at a total financing by MSMEDA valued EGP 500 million. This comes within the framework of the World Bank agreement, designated “Stimulating Entrepreneurship to Create Job Opportunities”, which seeks to finance existing projects with the aim of attaining development and expansion, by providing loans that assist these projects to continue and compete.

Dr. Gameh stated that the conclusion of this agreement comes in accordance with the plan of MSMEDA in coordination with various development partners, with the aim of supporting the initiative of the Central Bank of Egypt and the Egyptian Union for Microfinance. The agreement is also an implementation of the directives of H.E. President Abdel Fattah El Sisi, President of Egypt, and Engineer Mostafa Madbouli, Egypt’s Prime Minister, to expand the funding portfolio allocated to financing micro enterprises – with a focus on women and youth. This is since such projects provide temporary and permanent job opportunities, while increasing income, which leads to improving the quality of life for project owners and workers. Dr. Gameh added that the percentage of projects allocated to women in this project is about 30% of the total funding, with the size of the loan amounting to EGP 50 thousand; and that some 33 thousand micro-projects will be funded during the implementation period in all Egyptian governorates.


 

Worth noting is that the total value of contracts signed between Banque Misr and MSMEDA since 2011 to date amounts to approximately EGP 1.3 billion, through which 205 thousand micro-projects were financed at an amount of EGP 2.5 billion, through the Bank’s branches.


 

On his part, Mr. Mohamed El-Etreby stated that, “Banque Misr attaches great importance to the MSME sector by providing all financial and non-financial services to meet the needs of this sector’s clients, while also being one of the first banks to abide by the requirements of CBE. The financing of SMEs amounted to 20% of the Bank’s credit portfolio, with this having a marked impact on the national economy. This also coincides with the directives of the CBE and the state’s efforts to advance this sector in order to improve economic indicators, increase economic development rates, encourage local products and reduce the import bill.


 

Thanks to the efforts exerted in the field of financing micro, small and medium enterprises, Banque Misr recently won several awards in this field; including “Best SME Bank – Egypt 2020” from Global Business Outlook magazine; “Most Innovative SME Bank – Egypt 2020” from International Finance magazine; and “Best SME Partner Bank – Egypt 2020” from British The European magazine.


 

Banque Misr is always keen on actively participating in building the Egyptian economy and advancing society by providing all financial and non-financial services to meet the needs of its customers at all levels