Egypt's SME Agency and Tadbeer Partner Up for EGP 200 Million Boost to Small Businesses

As part of the SME Development Agency's plans to offer diverse financing options to business owners across various economic activities, especially industrial and productive projects, which helps boost their production and competitiveness and gets their products into local and global markets, Basil Rahmy, the CEO of the SME Development Agency, witnessed the signing of two new contracts with Tadbeer Financial Leasing and Factoring Company. These agreements bring a total of EGP 200 million in funding. The contracts were signed by Mohamed Osama Bakry, Head of the Central Sector for Medium and Small Enterprise Financing at the Agency, and Ahmed Kamal Selim, Managing Director of Tadbeer Financial Leasing and Factoring Company. Also present were Mohamed Medhat, Deputy CEO of the SME Development Agency, and Amir Kyrillos, Vice Chairman of Tadbeer's Board, along with several officials from both the Agency and the company.

Expanding Funding Tools to Support Growth

Basil Rahmy emphasized that the SME Development Agency is committed to following the directives of Dr. Mostafa Madbouly, the Prime Minister and Chairman of the Agency's Board. These directives focus on expanding various financing systems to meet the diverse financial needs of medium and small enterprises. This support helps them develop, grow, and create more decent and sustainable job opportunities for young people, ultimately maximizing this vital sector's contribution to the national economy. Rahmy explained that the Agency is increasingly focusing on financial leasing. He sees it as one of the most flexible and suitable financing tools for industrial and productive projects. It offers opportunities to update production lines and improve operational efficiency for long periods at a reasonable cost, which significantly boosts these projects' competitiveness. He added that the Agency also supports commercial factoring as a short-term financing tool that helps businesses improve their cash flow, especially those involved in exports and manufacturing industries.

Funding for Machinery, Equipment, and Operational Vehicles

Rahmy pointed out that the new funding will be used to finance the purchase of machinery, equipment, and spare parts essential for projects. It will also cover vehicles linked to supporting economic activities, as well as medical equipment and devices for clinics and pharmacies. This will all be done through a lease-to-own financial leasing system, benefiting productive, service, and commercial projects. He also clarified that the funding allocated for commercial factoring will be used as revolving accounts. This means it can be re-lent to small and medium-sized enterprises multiple times throughout the contract period, which helps maximize the financial benefit for a larger number of projects.

Tadbeer: Partnership with MSMEDA is a Cornerstone for Growth

Ahmed Kamal Selim, Managing Director of Tadbeer Financial Leasing and Factoring Company, expressed his appreciation for the developmental role played by the SME Development Agency. He praised its ability to implement a comprehensive national program to support and develop small and medium-sized enterprises. He affirmed that the partnership with the Agency has been a fundamental pillar of the company's success since their collaboration began in November 2023. He noted that the Agency had previously provided Tadbeer with approximately EGP 110 million in funding to support its clients, aligning with the Agency's goals. Selim added that signing this new contract reflects the shared visions and goals between both parties. It represents an important step towards providing broader financing opportunities for companies and individuals. He expressed his pride in the trust placed by the SME Development Agency, recognizing it as the national body responsible for developing medium, small, and micro-enterprises.

Supporting Productive Economy and Increasing Exports

Ahmed Kamal Selim explained that the new agreement demonstrates Tadbeer's ability to direct institutional funding towards the most in-need productive sectors. He emphasized that small and medium-sized enterprises are the backbone of economic growth in Egypt. He added that the role of financial institutions is to provide suitable financing tools for eligible companies, supporting their plans for expansion, investment, and creating sustainable job opportunities. He stressed that deepening cooperation with the SME Development Agency directly contributes to achieving the state's goal of increasing Egyptian exports to $100 billion. He also noted that this kind of integration between institutional financing and developmental policies translates into tangible economic results that support the national economy.

Over EGP 2.4 Billion in Funding Over 3 Years

Tadbeer is a specialized company that offers financing solutions for small and medium-sized enterprises. Over the past three years, it has successfully provided over EGP 2.4 billion in funding to companies operating in various sectors across different governorates of Egypt, through its financial leasing and factoring activities.

What is Financial Leasing and Commercial Factoring?

Financial leasing is defined as a contract between two parties where the lessor leases a productive or operational asset to the lessee for a long period, with the option for the lessee to own the asset at the end of the contract for a specified value. This allows businesses to use assets and pay for them gradually through lease installments. Commercial factoring, on the other hand, is a financial tool that helps companies improve their cash flow. It involves selling their short-term commercial receivables (invoices) to a factoring company in exchange for immediate liquidity, which helps them continue operations and expand.