Banque Misr and MSMEDA Sign EGP 500 Million ”Tamkeen 3” Microfinance Agreement
Banque Misr and the Micro, Small and Medium Enterprises Development Agency (MSMEDA) have officially signed the contract for the "Tamkeen 3" microfinance project. Through this initiative, MSMEDA is providing EGP 500 million in funding to support micro-enterprises via Banque Misr. The project aims to provide essential financing to existing micro-enterprises, backing their expansion and development to help create jobs, improve income levels, and boost overall economic development.
The agreement was signed by Hossam El-Din Abdel Wahab, Deputy CEO of Banque Misr, and Bassel Rahmy, CEO of MSMEDA. The signing ceremony was attended by Mohamed Medhat, Deputy CEO of MSMEDA; Maged Abdallah, Head of the SME and Microfinance Sector at Banque Misr; Nesma El-Gharably, Head of the Central Microfinance Sector at MSMEDA, alongside a host of distinguished leaders from both sides.
Contract Details and Loan Terms
Under the agreement, MSMEDA will allocate EGP 500 million to Banque Misr for on-lending to end beneficiaries who own micro-enterprises. The funds are designated to finance working capital and facilitate the purchase of machinery and equipment necessary for business expansion, thereby increasing production, enhancing competitiveness, and creating both permanent and temporary jobs.
Key financing parameters include:
Target Audience: Existing micro-enterprises that issue a tax card for their business activity after the contract signing date.
Loan Value: Ranging from over EGP 80,000 up to EGP 400,000 per beneficiary.
Repayment Period: Flexible terms starting from 12 months up to 36 months.
Executive Perspectives
Hossam El-Din Abdel Wahab, Deputy CEO of Banque Misr: Abdel Wahab emphasized that the "Tamkeen 3" contract reflects the continuous and fruitful partnership between Banque Misr and MSMEDA. This new phase builds upon the successes of "Tamkeen 1" (signed in 2021 for EGP 500 million) and "Tamkeen 2" (signed in 2024 for EGP 300 million). He reaffirmed the bank's commitment to its developmental role in empowering micro-enterprise owners to expand and grow, ultimately improving the living standards of Egyptian families.
He added that Banque Misr places great importance on the MSME sector as a fundamental pillar for sustainable economic development. The bank is dedicated to offering diverse financial solutions, supporting financial inclusion, and integrating the informal economy into the formal sector, in alignment with the Central Bank of Egypt's directives and state efforts.
Bassel Rahmy, CEO of MSMEDA: Rahmy highlighted the agency's keenness to activate joint cooperation with major financial institutions, led by Banque Misr, to achieve sustainable development and implement the state's strategy to advance micro-enterprises.
Transitioning to the Formal Economy
Rahmy explained that the "Tamkeen" microfinance contract falls under the agency's action plan within the Ministry of Finance's initiative to integrate more businesses into the formal economy. This transition allows enterprises to benefit from investment-supporting laws and the simplified tax systems introduced by Law No. 6 of 2025. It also grants them access to the facilities provided by the Enterprise Development Law No. 152 of 2020. MSMEDA is currently coordinating with the House of Representatives to introduce positive amendments to this law, most notably updating business definitions and doubling business volume thresholds to better suit the needs of SME and micro-enterprise owners.
Rahmy praised the collaboration with Banque Misr, noting that this contract confirms the bank's status as the first participating financial institution in the formal sector transition initiative. He concluded by clarifying that this new EGP 500 million funding targets the support of 2,500 micro-enterprises.