Cairo: Chief Executive Officer of the Agency for the Development of Small, Medium and Micro Enterprises, Basel Rahmi, and Chairman of Al Ahly Capital for Microfinance (Tamkeen), Karim Saada, have signed a contract to provide EGP 300 million in financing to the microfinance company. This initiative is part of the Ministry of Finance's strategy to formalize informal businesses, enabling them to benefit from the state's investment-supportive laws.

According to State Information Service Egypt, the signing ceremony was attended by several notable figures, including Mohamed Medhat, Deputy CEO of the Agency; Nesma El-Ghorably, Head of the Agency's Central Microfinance Sector; and Tarek Hassan, Managing Director of Tamkeen. The event also saw participation from board members May Hisham and Karim Saws, along with Ahmed Hamdy, Executive Director of the company's Microfinance Activity, and various officials from the Agency's Finance Sector.

Basel Rahmi stated that this new financing agreement with Tamkeen underscores the Agency's ongoing collaboration with the National Bank of Egypt to support the enterprise sector. The move aligns with the Agency's plans to broaden its network of microfinance companies, bolster its microfinance portfolio, and promote the establishment of micro enterprises. This effort aims to generate employment opportunities throughout the governorates, contributing to economic development.

Rahmi further explained that the Agency is working closely with the Ministry of Finance and the Egyptian Tax Authority to ensure these enterprises benefit from the tax concessions outlined in Law No. 6 of 2025. This coordination aims to simplify procedures, enhance market access, and encourage micro-entrepreneurs to integrate into the formal economy. The financing provided to Tamkeen will be on-lent to end beneficiaries, including recent graduates and experienced entrepreneurs, to support working capital needs and potential equipment purchases.

Karim Saada highlighted the significance of this financing agreement, which is part of Tamkeen's efforts to offer lower-cost finance, foster financial inclusion, and support entrepreneurship. The funds are intended to formalize informal businesses and provide employment opportunities for young graduates and women leading households.