MEMPHIS REISEN

Five banks finance over 210,000 projects with EGP 27.8bn under ‘Mashrou’ak’ initiative – Dailynewsegypt

Five banks have provided EGP 27.8bn in financing to over 210,000 micro, small, and medium enterprises (MSMEs) under the National Project for Community, Human and Local Development, known as “Mashrou’ak”, since its launch until January 2024. This has created over 1.7 million job opportunities in all governorates.

The banks involved are NBE, Banque Misr, Banque du Caire, the Housing and Development Bank (HDB), and the Agricultural Bank of Egypt (ABE).

The Ministry of Local Development, which oversees the program, announced that it plans to inject another EGP 4bn to support more MSMEs this year.

The program offers financing for the purchase of machinery, equipment, raw materials, and operating expenses. It covers livestock projects, as well as professions and self-employed activities. It also finances the purchase of cars, subject to the conditions specified by each bank.

The minimum financing amount is EGP 25,000, with no maximum limit, depending on the results of the credit study. The repayment period is up to five years, with an interest rate of up to 5%.

To apply for the program, an applicant must apply to the project unit, including the project idea, a feasibility study, the number of workers, and the initial cost. The documents are then reviewed, and the loan amount is determined accordingly.

After completing the required documents, the application is submitted to the bank representative in the “Mashrou’ak” unit. The bank then reviews the papers and informs the project owner of the approval or rejection, within two weeks of submitting the papers.

Hisham Amna, Minister of Local Development, received a report on the achievements of the program last weekend. He emphasized that the main objective of “Mashrou’ak” is to promote development in villages, neighborhoods, cities, and centers in all Egyptian governorates, and to foster a new generation of young investors.

The Minister of Local Development said that he continues to receive requests from citizens who want to start new projects. He explained that the “Mashrou’ak” team offers facilities for applicants, such as technical and administrative training, free feasibility studies, and temporary licenses until a permanent one is issued.

He also said that the next period will see a major leap for “Mashrou’ak”, as young people will be helped to market their products locally and internationally through the “Hands of Egypt” digital platform, which was launched by the Ministry to market heritage, craft, and handmade products, in cooperation with the World Food Organization and E-Finance.

The Minister of Local Development instructed the “Mashrou’ak” team to remove all obstacles, simplify the loan granting procedures, and expedite the decision-making process at banks to approve or reject financing, as well as issue temporary licenses for eligible projects.

Amna stressed that the Ministry aims to create an integrated system that enables, supports, and develops the MSME sector, in all cities and villages, given its vital role in reducing unemployment, creating job opportunities, enhancing economic development, and encouraging self-employment culture.

The Minister of Local Development also added that “Mashroua’k” provides soft loans to many groups, especially low-income people, to finance projects that villages need. This contributes to achieving the social dimension of development by alleviating unemployment, especially among youth and women in villages. He pointed out that this program aims to bring about community development in all governorates, centers, villages, and hamlets of Egypt and remote areas. It also targets various groups of Egyptian society, especially young people and women who are key breadwinners in their families, to raise the standard of living for all these groups of people through financing their micro, small, and medium enterprises and eliminating unemployment.