Private sector support and innovation MSME III

active

A budget loan of EUR 30.0 million will be granted to the Arab Republic of Egypt, represented by the Egyptian Central Bank CBE. The funds will be passed on to the Micro, Small and Medium Enterprise Development Agency (MSMEDA), which, as the project sponsor, implements the FC credit line in planning, management and financial processing. MSMEDA issues loans directly to the final borrowers or indirectly through partner financial institutions (PFIs, i.e. banks, microfinance institutions (MFIs) and MFI-NGOs) to promote micro, small and medium-sized enterprises (MSMEs) (main measure). Module objective Access to needs-based financial services for Egyptian micro and small enterprises in the informal and formal sectors is improved. The final borrowers are thus able to secure and generate income. The target group of the project are Egyptian micro and small entrepreneurs and entrepreneurs who implement investments and benefit from access to financing either directly through MSMEDA or indirectly through PFIs. The credit line is also intended to improve the inclusion of women (at least 50% of final borrowers), the informal sector (at least 80% of final borrowers) and customers in rural areas (at least 75% of final borrowers). In addition, investments in climate protection in the microfinance sector are to be promoted. At least 20% of the MSME III credit line is to be used for environmental loans in the microfinance sector (innovative approach of downscaling green finance). A broad definition of eco-loans is applied here, ranging from standardized, small-scale investments in energy-efficient devices (e.g. air conditioning systems and refrigerators), to PV installations for the MSMEs' own consumption, to investments with a focus on energy and resource efficiency.