The Sovereign Fund of Egypt (TSFE) has joined forces with Etisalat Egypt by e& to launch Erada Microfinance to provide access to a wide range of financial services to micro and small enterprises (MSEs).
The partnership seeks to advance Egypt’s Vision 2030 to support financial inclusion and create opportunities for the youth through providing innovative financial services and digitally-enabled lending products.
Dr. Hala H. ElSaid, the Minister of Planning and Economic Development and Chairperson of TSFE said that the establishment of Erada is in alignment with the government’s directives to facilitate small and micro enterprises’ access to financing and create additional job opportunities for the youth.
The founders and shareholding structure of Erada in addition to TSFE and Etisalat Egypt by e&, includes Amr Abouelazm, an industry veteran in non-banking financial services who has also been appointed as Vice Chairman & Chief Executive Officer of Erada.
Ayman Soliman, Chief Executive Officer of TSFE said that Egypt is well positioned for an immediate and full launch of its digital economy in line with the wealth fund’s financial services and fintech subfund’s strategy of creating value and returns across all sectors.
The number of beneficiaries who have received microfinance loans is on the rise in Egypt with a 46% annual growth rate according to the end of September 2022, reaching some EGP 35.50 billion and EGP 3.80 million beneficiaries of which 60% were women amounting to 2.30 million beneficiaries and 64% were youth.