Egypt: Launch of Erada microfinance to provide financial services to SMEs

The Sovereign Fund of Egypt (TSFE) and Etisalat Egypt have launched Erada Microfinance to provide access to a wide range of financial services to micro and small enterprises (MSEs).

Erada uses financial technology (FinTech) and provides access to a diversified set of innovative financial products for MSEs to expand their businesses, Mubasher.info reports.

The partnership, the media notes, is in line with Egypt’s Vision 2030 aimed at supporting financial inclusion and creating opportunities for the youth. Amr Abouelazm, an industry veteran in the area of non-banking financial services, is appointed as Vice Chairman & Chief Executive Officer (CEO) of the microfinance facility.

The number of beneficiaries who have received microfinance loans in Egypt is on the rise, with a 46% annual growth rate according to September 2022 data, reaching some EGP 35.50 billion, and 3.80 million beneficiaries, of which 60%, or 2.30 million, were women, and 64% were youth.
CEO of the Sovereign Fund of Egypt Ayman Soliman said that Egypt is well positioned for an immediate and full launch of its digital economy in line with the fund’s Financial Services and Fintech Sub-fund’s strategy of creating value and returns across all sectors. The Fund is a privately managed sovereign investment fund with the objective of attracting private investments in Egypt’s underutilized assets to unlock value and create wealth for future generations, and contribute to the growth of Egypt’s economy.