MSMEDA signs LE 20M contract with Plus Leasing

CAIRO – 31 December 2017: The Micro, Small and Medium Enterprises Development Agency (MSMEDA) signed a LE 20 million loan contract with Plus Leasing for lending small and medium enterprises (SMEs) in the Governorates, Chairman of the Authority, Nevine Gamea, said.

The contract aims to lend SMEs on a leasing basis, to finance purchasing business equipment, devices and vehicles, a Sunday statement from MSMEDa reported.

Under the deal, Plus Leasing will sign 44 contracts with SMEs, expecting to create 220 new job opportunities, Gamea said.

MSMEDA, the Governmental entity responsible for SMEs projects in Egypt, offers funds to SMEs projects, either directly or through banks acting as mediators.

The authority offered nearly LE 215 million during 2017 to finance about 14,000 small and microprojects that enabled the creation of 19,000 jobs. In addition, they provided grants at LE 24 million for training projects and community development programs.

The agency also offers direct loans outside the banking system because the values are relatively small. With regards to the insolvency rate, around 5 percent of the participants will be unable to repay the loans.