Egypt’s Micro, Small, and Medium Enterprise Development Agency (MSMEDA) has signed a new financing agreement with Banque Misr to channel USD 10 million (EGP 500M) toward microenterprises. This marks the latest phase of the government’s efforts to increase access to funding for small businesses and encourage informal enterprises to formalize.
The new funding facility aims to help bring more businesses into Egypt’s formal economy while expanding access to finance for existing microenterprises.
Why You Should Care
The new financing program expands funding opportunities for Egypt’s smallest businesses. This is while advancing the government’s push to bring more enterprises into the formal economy. Eligible businesses will gain access to financing, simplified tax incentives, and other benefits designed to support growth, investment, and job creation.
The Details
MSMEDA and Banque Misr signed the “Tamkeen for Microfinance (3)” project agreement. Under the agreement, MSMEDA will provide USD 10 million (EGP 500M) in financing to support microenterprises through Banque Misr. The financing aims to support their expansion and development, contribute to job creation, improve income levels, and increase contributions to economic development.
MSMEDA will provide the financing to Banque Misr for on-lending to the final beneficiaries, who are owners of microenterprises. The financing will be used for working capital and to enable the purchase of machinery and equipment. This is to support their development and expansion. Thus, contributing to increased production, improved competitiveness, and the creation of permanent and temporary jobs.
The project targets existing microenterprises whose business activity has obtained a tax card after the date of signing the agreement. The financing available to the final beneficiary ranges between USD 1.6 thousand (EGP 80K) and USD 8 thousand (EGP 400K), with repayment periods of 12 to 36 months. Additionally, this new financing targets to support around 2,500 microenterprises.
The program aligns with the Ministry of Finance’s initiative to encourage businesses to enter the formal sector. Thus, enabling them to benefit from laws supporting investment and simplified taxation under Law No. 6 of 2025. They will also be able to benefit from the advantages and facilities provided under the MSME Development Law No. 152 of 2020
The Ripple
The agreement expands MSMEDA’s collaboration with Egypt’s banking sector to increase financing for microenterprises. It also supports the Ministry of Finance’s initiative to encourage more businesses to join the formal economy. Thus, giving eligible enterprises access to financing as well as the incentives and simplified tax framework introduced under recent legislation.
What to Watch
The new agreement builds on previous financing partnerships between MSMEDA and Banque Misr. It is the latest phase of the partnership between MSMEDA and Banque Misr following the launch of Tamkeen 1 in 2021 and Tamkeen 2 in 2024.
It also aligns with ongoing government efforts to strengthen support for small businesses through greater access to finance and incentives for joining the formal economy.
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