Press Release

OFID begins supporting Microfinance and MSEs in Egypt

01/2010 January 13, 2010 Cairo, Egypt
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Mr. Suleiman J. Al-Herbish, Director General, OPEC Fund for International Development (OFID) headed a high level delegation to Cairo, Egypt, where he held meetings with HE Mrs. Fayza Aboulnaga, Minister of International Cooperation, HE Eng. Ahmed El Magraby, Minister of Housing, Utilities and Urban communities, and HE Mr. Hassan Younis, Minister of Energy and Electricity.

The main purpose of the mission was the signature of the loan agreement with the Egyptian Social Fund for Development (SFD) for the amount of USD 25 million to support the development of Micro- and Small Enterprises (MSEs) and Microfinance in the Arab Republic of Egypt.

OFID’s main objective for its support to this project is to enhance the promotion of economic development by increasing the income of poor households throughout Egypt. OFID’s loan aims at significantly improving the overall socio-economic conditions of local communities mainly through job creation. This project will help increase job opportunities and self-employment which eventually will lead to poverty alleviation and the enhancement of national economic growth. The SFD was created as a governmental agency with the objective of mobilizing resources for further social development via MSE’s.

The loan agreement was signed on behalf of Egypt by HE Mrs. Fayza Aboulnaga, Minister of International Cooperation, and Mr. Al-Herbish, Director-General of OFID. At the signature ceremony, Mr. Al-Herbish said that OFID had an established history of co-operation with Egypt through its support to public sector projects. Mr. Al-Herbish noted that; “support which contributes towards improving conditions by extending small loans can substantially improve the livelihood of such local communities”. He further discussed the spiral affect such efforts lead towards job creation and economic stimulation of these areas. HE Fayza Abulnaga expressed her “pleasure with this project which will show immediate impact on the beneficiaries”, and said that she looked forward to further such cooperation with OFID.

Co-financers of this initiative include the World Bank; the African Development Bank (AfDB); the Saudi Fund; the Japan International Cooperation Agency; the Islamic Development Bank (IsDB); the International Fund for Agricultural Development (IFAD); the Arab Fund for Economic and Social Development (AFESD); the Kuwait Fund for Arab Economic Development (KFAED); the Abu Dhabi Fund for Development (ADFD); and the SFD Recycled Fund; among others.

  Arabic version