Banque Misr, MSMEDA launch $10 million microenterprise fund

Egypt’s Micro, Small, and Medium Enterprise Development Agency (MSMEDA) has signed a $10 million financing agreement with Banque Misr to support microenterprises, marking a new phase in the government’s drive to expand financial inclusion and formalize informal businesses.

The EGP500 million ($9.86 million) agreement, titled “Tamkeen for Microfinance (3)”, will see MSMEDA provide funding to Banque Misr for on-lending to microenterprise owners. The initiative is designed to improve access to capital while helping more small businesses transition into Egypt’s formal economy.

Expanding access to finance for microenterprises

Under the program, microenterprises will be able to access financing ranging from EGP 80,000 ($1,578) to EGP 400,000 ($7,888), with repayment periods between 12 and 36 months. The funds will be used for working capital as well as the purchase of machinery and equipment to support expansion.

The initiative is expected to support around 2,500 microenterprises, helping boost production capacity, improve competitiveness, and create both permanent and temporary jobs.

Beyond financing, eligible businesses will benefit from simplified tax incentives and regulatory support aimed at encouraging long-term growth and investment.

Supporting Egypt’s formalization agenda

The program aligns with broader government efforts to integrate informal businesses into the formal sector. Enterprises that qualify will be able to access incentives introduced under recent reforms, including provisions tied to the MSME Development Law No. 152 of 2020 and updated tax frameworks under Law No. 6 of 2025.

By linking financing with formalization benefits, the initiative aims to strengthen compliance while expanding the economic contribution of small businesses.

Building on a growing partnership

The latest agreement builds on an ongoing collaboration between MSMEDA and Banque Misr, following earlier phases of the Tamkeen program launched in 2021 and 2024.

It also reflects Egypt’s broader strategy of working with the banking sector to scale financing for micro and small enterprises, widely seen as a critical driver of job creation and economic development.

As the country pushes to deepen financial inclusion, initiatives like Tamkeen (3) are expected to play a key role in unlocking growth at the grassroots level while strengthening the resilience of Egypt’s small business ecosystem.