MSMEDA, Contact ink EGP 110M financial leasing, factoring contracts for small enterprises
Updated 10/1/2023 9:22:00 AM
Arab Finance: Micro, Small and Medium Enterprise Development Agency (MSMEDA) and Contact Financial Holding signed two contracts worth a total of EGP 110 million to facilitate financing solutions for small enterprises via financial leasing and factoring, according to a statement.
This will contribute to boosting the projects’ expansion and creating permanent and temporary job opportunities for the youth.
The two contracts were financed through the World Bank’s Catalyzing Entrepreneurship for Job Creation project.
The contracts were signed by MSMEDA’s CEO Bassel Rahmy and Contact’s CEO Saeed Zaatar.
Worth EGP 70 million, the first contract aims to provide financing to youth across the country via financial leasing, allowing customers to get machines, equipment, and raw materials needed for their projects with fixed-term instalments.
The second contract, the first of its kind for MSMEDA, is valued at EGP 40 million and aims to refinance short-term funding to customers through factoring.
This will be executed via sealing contracts between customers and factoring companies, which will purchase receivables, with the aim of improving the projects’ liquidity.
Financing directed to women-led enterprises under the above contracts are set to account for over 40% of total funds.
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