The Sovereign Fund of Egypt (TSFE) and Etisalat Egypt have partnered together to launch a new fintech company, “Erada Microfinance”, with the aim of enabling micro and small enterprises to access a wide range of financial services.
Planning Minister Hala al-Saeid, who also doubles as chairperson of TSFE, said on Monday that the establishment of “Erada Microfinance” is in line with government directives to facilitate access of small and micro enterprises to financing and to create additional job opportunities for youth.
Indeed, fintech enables businesses with strong financing facilities to support Egypt’s national agenda of digital transformation and financial inclusion across all vital economic sectors, thus helping achieve Egypt’s Vision 2030 and the UN Sustainable Development Goals; namely SDG 5: Gender Equality and SDG 8: Decent Work and Economic Growth, the minister made it clear.
The partnership is in line with Egypt’s Vision 2030 of supporting financial inclusion and creating opportunities for youth through providing innovative financial services and digitally enabled lending products.
The founders and shareholding structure of “Erada Microfinance”, in addition to TSFE and Etisalat Egypt, include Amr Abul Azm, an industry veteran in the area of non-banking financial services. Abul Azm has been appointed Vice Chairman and Chief Executive Officer of “Erada Microfinance”.
In Egypt, the number of beneficiaries who have received microfinance loans is on the rise, with a 46-percent annual growth rate reported at the end of September 2022 and reaching approximately 35.5 billion pounds.
Over 3.8 million have benefited from microfinance loans, according to a Financial Regulatory Authority (FRA) report. Of the total number of beneficiaries, 60 percent were women, the report said, noting that they amounted to 2.3 million. About 64 percent of the beneficiaries were youth, it added