EU & KfW Launch New Innovation and Microfinance Initiatives at Turathna 2025

The European Union Delegation to Egypt and KfW Development Bank reaffirmed their joint commitment to inclusive economic development, innovation, and entrepreneurship during the opening of the 2025 edition of the Turathna Exhibition. Organized by the Micro, Small and Medium Enterprises Development Agency (MSMEDA), the exhibition was launched under the auspices of President Abdel Fattah El-Sisi and serves as Egypt’s flagship event for handicrafts, creative industries, and small business empowerment.

The occasion marked a key moment for announcing the next wave of initiatives under the MSME Financing II Project, a long-term program co-funded by the European Union and KfW on behalf of the German Government, and implemented by MSMEDA. The project targets microenterprises, small businesses, start-ups, and young or women entrepreneurs across Egypt, especially in underserved and remote regions.

This year’s exhibition included a dedicated showcase of ten carefully selected handicraft enterprises supported by the project. These enterprises presented innovative products that reflect how local craftsmanship, entrepreneurship, and creativity can generate meaningful economic, social, and environmental impact. Their participation not only spotlighted Egypt’s vibrant entrepreneurial talent but also underscored how small and micro businesses can contribute to national development.

During the event, MSMEDA unveiled a series of new initiatives to be launched under the MSME Financing II Project. Among them is an upcoming innovation loan product that offers performance-based incentive grants to MSMEDA borrowers investing in new equipment, machinery, and job creation. The product is designed to support enterprises working in forward-looking sectors such as green industry, circular economy, and social entrepreneurship. The aim is to increase competitiveness, encourage sustainable growth, and reward innovation with measurable impact.

Another initiative will invite start-ups and SMEs to design solutions to sector-specific challenges. These challenges have been identified in key areas of the economy where there is strong potential for innovation. Selected businesses will receive direct grants to develop their ideas, with the goal of integrating them into local and international value chains and boosting their role in the formal economy.

The project will also provide targeted grants to entrepreneurship support organizations, including incubators and accelerators. These funds will enable organizations to implement novel approaches in supporting entrepreneurs, particularly in fields related to clean energy, resource management, the blue and circular economies, and community-driven innovation. By strengthening the support ecosystem, the program seeks to build a more resilient and responsive environment for emerging businesses.

To complement these efforts, MSMEDA will scale up its support for the innovation business development services (i-BDS) ecosystem. The goal is to make high-quality advisory services more accessible to small businesses across Egypt, accelerating the adoption of innovative practices and increasing their environmental and social contributions. These services will play a key role in helping businesses transform ideas into scalable, sustainable models.

In parallel, the event also featured the announcement of the anticipated STAR Programme, a microfinance-focused initiative that aims to build the institutional capacity of microfinance NGOs across the country. The program will help strengthen their ability to serve low-income communities more effectively, improve outreach in rural and informal areas, and promote deeper financial inclusion at the grassroots level.

All of these initiatives reflect the core values of the EU–Egypt Strategic Partnership and the Egyptian-German development cooperation priorities, particularly in areas such as inclusive and sustainable economic growth, private sector development, innovation, and social cohesion. They also build on a decade-long collaboration between MSMEDA, the EU, and KfW, with a shared commitment to advancing entrepreneurship as a pillar of economic empowerment.

The MSME Financing II Project, which runs until 2028, is designed to foster job creation, increase incomes, and promote access to finance for Egypt’s most dynamic and underserved entrepreneurs. With a blend of credit lines, grants, and ecosystem support, the project continues to serve as a catalyst for inclusive development across all governorates.