MSMEDA, Erada Microfinance to boost Egypt’s fresh produce sector with US$1.2M investment

EGYPT – The Micro, Small, and Medium Enterprise Development Agency (MSMEDA) has partnered with Erada Microfinance to inject EGP 60 million (US$1.2 million) into micro-enterprises, aiming to support 1,700 agricultural and fresh produce projects across Egypt.

The agreement, signed by officials from both entities, focuses on boosting productive and agricultural initiatives.

The event was attended by Basel Rahmy, CEO of MSMEDA, and Marian Ghali, Chairperson of Erada Microfinance.

Signing the deal were Nevine Badr El-Din, Head of the Central Microfinance Sector at MSMEDA, Amr Aboul Azm, Vice Chairperson and Managing Director of Erada, and Noha Roshdy, Board Member. Senior officials from both organizations were also present.

Rahmy highlighted MSMEDA’s commitment to working with financial institutions to enhance micro-enterprises, which play a key role in creating jobs, particularly for youth and women.

“This collaboration aligns with the state’s strategy to expand micro-enterprises as a vital contributor to the national economy,” he said.

He also noted that MSMEDA aims to increase its partnerships with microfinance companies, including newer ones, to improve financial access for small business owners.

Under the agreement, projects can receive funding of up to EGP 242,000 (US$ 4840), depending on their requirements. MSMEDA has prioritized funding for productive and agricultural sectors, recognizing their impact on meeting domestic demand and supporting sustainable economic development.

Marian Ghali, Chairperson of Erada Microfinance, emphasized the company’s dedication to investing in micro-enterprises and their role in driving economic growth.

“We are committed to strengthening productive and agricultural sectors, supporting sustainable investments, and empowering communities,” she stated.

Nevine Badr El-Din noted that this is not the first collaboration between MSMEDA and Erada. “In November 2023, MSMEDA provided EGP 100 million to Erada, financing approximately 3,400 micro-enterprises and generating over 6,600 jobs,” she said.

Women entrepreneurs accounted for 52% of the funded projects, while 46% of beneficiaries were youth under 35 years old. Around 8% of the financing supported production and industrial sectors.

Amr Aboul Azm stressed Erada’s commitment to integrating financial technology to expand financial inclusion. “Our focus is on supporting women and youth while reinforcing the agricultural sector. This partnership is a step toward inclusive economic growth that benefits society as a whole,” he said.

The agreement comes at a time when Egypt has been making progress in agricultural production. In the 2022/2023 agricultural year, vegetable production rose to 24.9 million tons, a 5.2% increase from the previous year. Fruit production also grew, reaching 13.79 million tons, a 6.2% increase.

The rise in production has led to higher per capita consumption, with vegetables increasing from 80.7 kilograms to 84.9 kilograms and fruits from 65.6 kilograms to 69.3 kilograms.

The government has been actively supporting agriculture through subsidies, training programs for farmers, and investment in modern farming technologies.

Additionally, the Future of Egypt project aims to reclaim approximately 1.8 million hectares of land by 2030, modernize irrigation systems, and boost agricultural production.

The initiative seeks to reduce reliance on imports while increasing agricultural exports by 20-25% over the next five years.

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