Egypt’s Sovereign Fund, Etisalat Egypt launch company to provide finance to micro, small companies

Doaa A.Moneim , Monday 16 Jan 2023

Egypt's Sovereign Fund (ESF) and Etisalat Egypt have launched Erada Microfinance company to provide access to a wide range of financial services to micro and small enterprises.



The fund said on Monday the step, in line with Egypt’s Vision 2030, supports financial inclusion and generates opportunities for youth by providing innovative financial services and digitally enabled lending products.


Recipients of microfinance loans increased by 46 percent in the past year, with loans reaching EGP 35.5 billion. Some 3.8 million beneficiaries -- 60 percent of whom are women -- received loans worth EGP 33.5 billion، according to the Ministry of Palnning and Economic Development.


Minister of Planning and Economic Development Hala El-Said said Erada is in line with the government's directives to facilitate access for small and micro enterprises to financing and to create more job opportunities for youth.


The minister noted that fintech-enabled businesses with strong financing facilities support Egypt’s digital transformation and financial inclusion agenda to achieve Egypt’s Vision 2030 as well as the United Nations Sustainable Development Goals (SDGs), namely SDG 5: Gender Equality; and SDG 8: Decent Work and Economic Growth.


CEO of the ESF Ayman Soliman stated Erada's launch was carried out by the fund's Financial Services and Fintech Sub Fund and is in line with its strategy to maximise value through counting more on the private sector partnerships and partnering with industry veterans.


Soliman added that having Etisalat Egypt as a partner enables Erada to immediately launch a full suite of innovative lending products that are catered to market and customer needs. 


He added that Egypt is well positioned for an immediate and full launch of its digital economy to stimulate economic growth and accelerate the transformation process through partnerships with strategic investors.


Hazem Metwally, CEO of Etisalat Egypt, said the new company is managed through an independent board of directors. He added that the company's investments have reached over EGP 70 billion over the span of 15 years and that it empowers micro, small, and medium-sized enterprises through availing access to finance and tech-enablement in Egypt.


Amr Abul-Azm, cofounder, CEO, and vice chairman of Erada said the company is collaborating with the full ecosystem and beneficiaries including banks, corporates and entrepreneurs to provide a gateway to innovative products to support this vital sector in Egypt, allowing access to finance, creating jobs and additional income. 


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