Chief Executive Officer (CEO) of Micro, Small and Medium Enterprise Development Agency (MSMEDA) Mr. Bassel Rahmy signed two contracts totaling EGP 110 million with CEO of Contact Financial Holding Mr. Saeed Zaatar.
The purpose is to facilitate access to finance for start-up and/or existing small enterprises through financial leasing and factoring and generate permanent and temporary job opportunities for youth.
Rahmy voiced MSMEDA's keenness on accelerating means of cooperation with partner agencies to create diversified financial channels that meet the requirements of youth and labor markets as well. He indicated these two contracts are financed through the World Bank's "Catalyzing Entrepreneurship for Job Creation Project."
"MSMEDA has signed the first contract with Contact Financial Holding at EGP 70 million to provide funds to youth in all the governorates of Egypt through financial leasing. This finance enables clients to get machines, equipment and raw materials against fixed-term installments," Rahmy said.
"Start-up and existing enterprises operating in many areas like animal wealth, certified clinics, pharmacies and medical centers and others will benefit from this contract," he added.
CEO of MSMEDA explained that the second contract, the first of its kind for MSMEDA, is intended to offer funds to clients (through factoring) at a value of EGP 40 million to satisfy the diversified needs of small and medium enterprises. He reiterated that it is a short-term finance via contracting between factoring companies and clients where companies purchase receivables (resulting from selling goods and offering services). This way, cash flow cycle and liquidity are improved within enterprises.
Rahmy concluded that the finance of women-led enterprises according to these two contracts is not less than 40% of total finance of enterprises.
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