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HomeEgyptEgypt-Based Enmaa Finance Signs $3 Million Agreement with MSMEDA to Boost Egyptian...

Egypt-Based Enmaa Finance Signs $3 Million Agreement with MSMEDA to Boost Egyptian exports

In order to assist small and medium-sized exporters with foreign currency receivables, Basel Rahmi, CEO of the Micro, Small, and Medium Enterprises Development Agency (MSMEDA), and Tarek El Fayoumi, CEO and Managing Director of Enmaa Finance, have inked a $3 million financing deal. The international factoring mechanism will be used by Enmaa Finance to offer this funding.

According to Rahmi, this arrangement complies with Prime Minister Mostafa Madbouly’s directions to assist export-oriented projects by attending to their requirements and facilitating their entry into foreign markets.

The objective is to give these initiatives the cash flow they need to buy supplies for production and raw materials, so they can grow and maintain their businesses, improve their capacity for producing goods, and keep bringing local goods to new markets.

The funding given to Enmaa Finance is a component of the “Catalyzing Entrepreneurship for Job Creation” project, which is backed by the World Bank. It will serve as a revolving fund for existing small and medium-sized businesses (SMEs) who are involved in exporting, providing them with short-term loans.

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The international factoring system will be utilized to factor export shipment documentation with the help of these loans.

Rahmi stressed that exporters with foreign currency receivables are the agreement’s primary clientele. Only ultimate beneficiaries engaged in activities requiring foreign exchange for the import of raw materials and production inputs will be eligible for the financing.

The CEO of MSMEDA stated that the financing contract has a maximum financial cap of EGP 15 million for small businesses and EGP 30 million for medium-sized businesses per exporter, and it covers a wide range of projects throughout all governorates in Egypt.

El Fayoumi, for his part, emphasized that the MSMEDA finance, denominated in dollars, was consistent with the national aim to bolster Egyptian exports. By offering short-term finance through the international factoring system, which is essential for supporting the working capital of beneficiary projects, this program helps exporters to stabilize and expand. Additionally, he commended the engagement with MSMEDA, highlighting it as a noteworthy initial effort.

About Enmaa Finance

Enmaa Finance Company, founded in 2015 as a joint stock company under The Islamic Corporation for the Development of the Private Sector (ICD), Arab Investment Bank (AIBK), and Ayady for Investment and Development Company, provides Shari’a-compliant leasing and factoring solutions to improve business cash flow and finance commercial and administrative real estate, transportation, IT equipment, industrial equipment, and used equipment.

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