Egypt's Minister of Investment and International Cooperation Sahar Nasr inked on Wednesday three financial agreements with the Saudi Fund for Development (SDF) to provide EGP 125 million to boost financial leasing for small and medium sized enterprises (SME).
Three Egyptian companies will benefit from the fund to boost their activities related to financial leasing; EFG Hermes, Global Lease Egypt and UE Finance.
The agreements are part of an initiative adopted by the Ministry of Investment and International Cooperation that aims to substantiate a projects financing program to create job opportunities and widen the circle of social solidarity, in addition to offering financial leasing services to SMEs and microenterprises.
The first part of the agreement provides EGP 75 million to EFG Hermes, 50 percent of which will be allocated to the agriculture and livestock sector, while the second and third parts provide EGP 25 million each to Global Lease Egypt and EU Finance companies.
According to the agreement, SMEs and microenterprises working in renewable energy, healthcare, industry, agriculture and livestock in Upper Egypt and the Delta regions will be offered financial leasing services, including purchasing the required equipment and transportation facilities for the beneficiaries, either for new or already existing projects.
According to a statement issued by the Ministry of Investment, the financing provided by the agreement could reach 100 percent of the investment cost of each beneficiary project.
Minister Nasr has said that these agreements are grants offered by SFD to boost entrepreneurships and SMEs, giving the private sector a bigger role due to the variety of financial tools that support entrepreneurs.
“The agreement inked with the Saudi side offers financing for infrastructure projects and aims to inject new investments in Egypt. Bilateral relations between Egypt and Saudi Arabia are solid and the upcoming period will witness new agreements with the Saudi side to improve the transportation sector,” Nasr revealed.
Saudi ambassador to Egypt Osama bin Ahmed Nuqali said that Saudi Arabia is working on injecting more investments in Egypt through the SFD or the private sector.