MSME Financing Project II

MSME Financing Project II EU/KfW funded project aiming to foster job creation & income generation in Egypt by supporting MSMEs access financing

The MSME Financing Project II (2024-2027) is funded by KfW and co-financed by the EU, with the objective of contributing to job creation and income generation in Egypt by supporting innovative SMEs, start-ups, and micro-entrepreneurs in accessing financing. The project's main component is a €30 million line of credit directed at start-ups, innovative SMEs, and microfinance borrowers, provided thro

ugh the Egyptian MSME Development Agency (MSMEDA) and its financial intermediaries. This credit line is complemented by technical assistance provided by GOPA AFC to enable MSMEDA to play a catalytic role in Egypt's innovation ecosystem and build its internal capacities to better serve the MSME sector. Additionally, grants will be disbursed to support the upgrading and scaling-up of selected MFI-NGOs and to provide financial incentives and advisory services to selected innovative SMEs and start-ups.

مشروع تمويل المشروعات الصغيرة والمتوسطة ومتناهية الصغر (والذي سيتم تنفيذه خلال الفتره ما بين 2024 وحتى2027) ممول من بنك التنمية الألماني والاتحاد الأوروبي للمساهمة في خلق فرص العمل وزيادة الدخل من خلال دعم الشركات الابتكارية والناشئة والمشروعات متناهية الصغر للحصول على التمويل اللازم.
ويتضمن المكون الرئيسي للمشروع خط ائتمان يبلغ حجمه 30 مليون يورو ويستهدف الشركات الناشئه والشركات الصغيره والمتوسطه ذات الأفكار الابتكاريه والمشروعات متناهية الصغر والمقدم من خلال جهاز تنمية المشروعات الصغيرة والمتوسطة ومتناهية الصغر بالتعاون مع شركاء الجهاز من الجهات التمويليه المختلفه.
وبالإضافه الى خط الإئتمان، يقدم المشروع عدد من خدمات المساعده الفنيه التي تقدمها شركة جوبا إيه إف سي الألمانيه وذلك لدعم وبناء قدرات جهاز تنمية المشروعات الصغيرة والمتوسطة ومتناهية الصغر بوصفه الداعم والمحفز والميسّر للبيئه الابتكاريه لقطاع الشركات الصغيرة والمتوسطه ومتناهية الصغر. ويقدم المشروع ايضأ بعض المنح لدعم تطوير مؤسسات التمويل متناهي الصغر وكذلك تقديم الحوافز الماليه والخدمات الاستشاريه لفئه مختاره من الشركات الناشئه والمشروعات الصغيره والمتوسطة ومتناهية الصغر ذات الأفكار الابتكاريه.

09/10/2025

From a simple idea to a project that blends creativity and sustainability 🌿

Simon Aouni, Art & Marketing Director at Egyptian Creative Art, is part of a passionate team turning recycled glass into artistic pieces that reflect the spirit of Egypt and its contemporary identity ♻️

The project was supported by مشاريع مصر جهاز تنمية المشروعات - Msme (Micro, Small and Medium Enterprise Development Agency) and proudly participated in Turathna 2025, with backing from European Union in Egypt and KfW through the MSME Financing II Project. It stood alongside a remarkable group of artisans reviving traditional crafts with a modern twist.

Every piece is a testament to the enduring power of Egyptian craftsmanship — always evolving, always preserving heritage.

بداية من فكرة بسيطة لمشروع بيجمع بين الإبداع والاستدامة

استاذ سيمون عوني المدير الفني والتسويقي في مشروع Egyptian Creative Art، جزء من فريق بيحوّل الزجاج المُعاد تدويره لتحف فنية بتعكس روح مصر وهويتها المعاصرة ♻️

المشروع اتدعم من جهاز تنمية المشروعات وشارك في معرض تراثنا 2025 بدعم من الاتحاد الاوروبي وبنك التعمير الألماني ضمن مجموعة مميزة من الحرفيين اللي بيقدموا فنون تراثية بروح جديدة كل قطعة فيه بتشهد إن الحرفة المصرية دايمًا قادرة تواكب العصر وتحافظ على تراثها

🎨 Under the MSME FINANCING II Project, co-funded by European Union in Egypt and KfW, a dynamic session on marketing was ...
09/10/2025

🎨 Under the MSME FINANCING II Project, co-funded by European Union in Egypt and KfW, a dynamic session on marketing was delivered to Turathna artisans by Rania Rashed, Marketing Communications Consultant on the project.

The session focused on the key pillars of marketing, emphasizing the importance of:

✅ Developing a clear marketing plan and budget
✅ Aligning marketing objectives with business goals
✅ Profiling target audiences demographically to reach the right clients in the right places

Social media also took center stage, with an engaging discussion on how to use it as a powerful tool to increase reach and engagement for artisan products.

Empowering artisans with marketing knowledge is a vital step toward sustainable growth and visibility. 🌍🧵

مشاريع مصر جهاز تنمية المشروعات - Msme

🚀 Innovation in Action – Practical, Inclusive, and Rooted in MindsetAs part of an inspiring session held for participant...
09/10/2025

🚀 Innovation in Action – Practical, Inclusive, and Rooted in Mindset

As part of an inspiring session held for participants of the Turathna Exhibition, and delivered under the MSME FINANCING II Project, funded by European Union in Egypt and, we explored innovation as a mindset and a practical tool — not limited by business size, resources, or technology.

Led by Ms. Fatma Bakr, Business Development Services Consultant, the session introduced the Design Thinking process (Empathize, Define, Ideate, Prototype, Test), supported by the philosophy of continuous improvement through Kaizen, and creativity tools like Disney’s Dreamer, Realist, Critic method.

We also discussed how ideas spread through Rogers’ Diffusion of Innovation model, all grounded in real Egyptian success stories — proving that innovation begins with empathy, action, and a fresh perspective.

✨ Session Highlights:

• Participants shared overviews of their projects and what makes them innovative.
• Engaged in the “Innovation Stimulus” activity to inspire unconventional thinking and identify new opportunities.
• Practiced their “Elevator Pitches” to clearly and confidently communicate their ideas.
• Discussed strategies for marketing and building long-term, trust-based relationships with customers.

👏 A big thank you to all the creative and passionate entrepreneurs from Turathna who joined us!

مشاريع مصر جهاز تنمية المشروعات - Msme

🌍 Empowering Artisans Through Trade IntelligenceYesterday, the MSME FINANCING II project, co-funded by the The EU Delega...
07/10/2025

🌍 Empowering Artisans Through Trade Intelligence

Yesterday, the MSME FINANCING II project, co-funded by the The EU Delegation to Egypt and KfW, hosted a practical and insightful session for Turathna Exhibitors, delivered by the EuroMed Trade Helpdesk team.

With the support of Mr. Yehia El Menshawy and Ms. Dina Samouil, Certified Trainers at ITC, the session focused on how to leverage the ITC’s Trade Map—a powerful tool offering free access to global trade data, including tariffs, regulations, and market trends.

🔍 The session gave participants hands-on experience using the platform to
Identify export opportunities for their products, understand market-specific requirements, and navigate customs procedures and export registration.

💬 The session sparked lively discussion around exporting procedures, registration, and market access—highlighting a strong appetite among SMEs to go global.

We’re proud to be part of an effort that’s not only informative but also empowering for local artisans looking to expand their market reach!


مشاريع مصر جهاز تنمية المشروعات - Msme
European Union in Egypt

🎉 On Day 2 of Turathna, exhibitors had the opportunity to attend an insightful session led by our IT Consultant on the p...
07/10/2025

🎉 On Day 2 of Turathna, exhibitors had the opportunity to attend an insightful session led by our IT Consultant on the power of digital media in marketing handicrafts.

🧵 Mr. Mahmoud Badr introduced an exciting new initiative — the development of a dynamic website for Turathna, where each artisan will have their own profile page featuring photos of their unique products. This initiative is part of the collaboration between MSMEDA and the MSME Financing II Project, co-funded by the European Union 🇪🇺 and KfW 🇩🇪 and implemented by GOPA AFC.

📸 A dedicated team is currently working closely with artisans to create their online profiles — capturing professional product images and company details that will live on the website. Exhibitors were thrilled about this opportunity, as it enables them to reach potential buyers even after the event ends.

💬 As Mr. Badr shared, this is just the beginning — the website will eventually evolve into a full e-commerce platform, where customers can browse and purchase directly online.

🌍 To ensure visibility, the platform will be promoted through MSMEDA’s channels and featured in Turathna’s permanent booths at Cairo International Airport, other international airports, and landmark locations like the Grand Egyptian Museum — turning it into a true gateway to Egyptian handicrafts.

👏 This is a key milestone in our mission to empower startups and microenterprises across Egypt, helping them expand their reach and grow sustainably in the digital era.


مشاريع مصر جهاز تنمية المشروعات - Msme
European Union in Egypt

05/10/2025

🌟 An exciting day for the MSME Financing II Project team at the opening of Turathna Exhibition 2025!

Together with our partners — MSMEDA
The EU Delegation to Egypt, and KfW — we were proud to highlight our joint commitment to innovation and inclusive finance at this flagship event celebrating Egyptian handicrafts and entrepreneurship.

At Turathna, we're launching several initiatives to empower micro, small, and medium enterprises, including:
🔹 Innovation Loan with performance-based grants
🔹 Sector Challenges initiative for start-ups & SMEs
🔹 Grants for Entrepreneurship Support Organizations (ESOs)
🔹 Establishment of a National Innovation Advisory Network
🔹 The STAR Programme strengthening grassroots microfinance

📍 Visit our booth to learn more about these initiatives.

🎉 Also, don't forget to visit the booths of our 10 supported innovative handicraft enterprises showcasing their dazzling products.

🚀 📢 Shaping the National MSME Platform Together!On 23 July 2025, convened a coordination meeting with over 40 partici...
26/07/2025

🚀 📢 Shaping the National MSME Platform Together!

On 23 July 2025, convened a coordination meeting with over 40 participants representing key development partners AECID, AfDB, AFESD, EBRD, EIB, EU, GAC – Embassy of Canada, GIZ, ILO, JICA, KfW, UNDP, UNIDO, and World Bank — to discuss the launch of a National SME Platform providing MSMEs with access to financing, services, and market opportunities.
👉 MSMEDA CEO Bassel Rahmy underlined that leveraging digital and AI tools to address MSME needs and foster inclusion is indispensable, noting that MSMEDA already has the infrastructure that can be capitalized on to make this a reality. Development partners supported this vision and contributed their expertise, sharing experiences and proposing impactful functionalities that highlighted synergies among ongoing and planned initiatives.
👉 AFC Agriculture and Finance Consultants which manages the KfW The EU Delegation to Egypt-funded MSME Financing II project, presented a framework mapping interventions and showing how the blend of MSMEDA’s IT and physical infrastructure can boost the integration of financial and non-financial support alongside e-G2E services.
Inspiring practices showed that a modular, impact driven approach would enable efficient implementation, facilitate stakeholder engagement, and strengthen MSMEDA’s legitimacy to coordinate and steer the overall flow of initiatives.
💡Stay tune for more technical insights on the “HOW TO”.

🚀 MSMEDA Launches Landmark MSME Employment SurveyThe MSME Financing II project is helping MSMEDA in conducting an ambiti...
15/07/2025

🚀 MSMEDA Launches Landmark MSME Employment Survey

The MSME Financing II project is helping MSMEDA in conducting an ambitious survey targeting 3,500 micro, small, and medium enterprises (MSMEs) across Egypt. This initiative aims to generate deep insights into how MSMEDA’s financial and non-financial services are driving quality job creation—particularly for youth, women, and informal workers.

🔍 Why it matters:
The results will provide a detailed, territory- and sector-specific analysis of MSMEDA’s impact on employment and economic inclusion. The findings will also inform Egypt’s national MSME support policies and strengthen collaboration with development partners.

💡 Key Innovations in the Approach:
· A robust, internationally aligned methodology to measure employment impact
· Identification of high-performing sectors and subsectors in job creation
· A capacity-building program for MSMEDA’s M&E team to embed this approach long-term
· Strategic enhancements to MSMEDA’s monitoring framework and project indicators

🎯 Our goal: Build lasting institutional capacity so MSMEDA can repeat this survey on a regular basis to ensure that policy and program decisions are grounded in real, evolving data.



مشاريع مصر جهاز تنمية المشروعات - Msme
European Union in Egypt
European Commission

Christophe MALHERBE

ESMS: A Key Requirement for Accessing FundsOne of the main interventions that the MSME II Financing project supports MSM...
15/07/2025

ESMS: A Key Requirement for Accessing Funds

One of the main interventions that the MSME II Financing project supports MSMEDA at is establishing an Environmental and Social Management System (ESMS) which would help borrowers adopt environmental and social guidelines into their daily business practices.

ESMS have evolved beyond their traditional role as risk safeguards — they are now viewed as strategic tools. For financial institutions, ESMS is increasingly essential for securing funds, ensuring that both institutional operations and the projects they finance comply with environmental and social standards.

🔍 What is an ESMS?
Definition: An ESMS is a structured set of policies, procedures, tools, and internal capacities designed to manage environmental and social risks systematically.
Purpose: To ensure that environmental and social issues are considered in all stages of a project or business activity—planning, implementation, monitoring, and evaluation.
Scope: Applies across sectors and scales, from manufacturing and agriculture to infrastructure and finance.

🧩 How Does ESMS Help Companies?
✅ Risk Management
Identifies and mitigates environmental and social risks before they escalate.
Reduces the likelihood of operational disruptions and legal liabilities.
✅ Regulatory Compliance
Ensures adherence to national and international laws and standards (e.g., IFC Performance Standards, ISO 14001).
Facilitates permits, licenses, and financing from responsible institutions.
✅ Enhanced Reputation and Stakeholder Trust
Demonstrates commitment to sustainability and responsible business.
Builds trust with customers, investors, regulators, and communities.
✅ Access to Finance
Many financial institutions require an ESMS as a precondition for loans or investments, especially development finance institutions.
Improves creditworthiness and investment attractiveness.
✅ Operational Efficiency
Promotes resource efficiency (e.g., energy, water, waste), reducing costs over time.
Helps anticipate and adapt to environmental and social changes.
✅ Long-Term Business Sustainability
Supports resilient supply chains and workforce stability.
Aligns with global ESG (Environmental, Social, Governance) expectations and reporting standards.


European Union in Egypt
مشاريع مصر جهاز تنمية المشروعات - Msme

Christophe MALHERBE

📢 Reaching Out to Young and Female Entrepreneurs through MSME Financing Project II: Field Mission to Beni SuefOn March 1...
20/03/2025

📢 Reaching Out to Young and Female Entrepreneurs through MSME Financing Project II: Field Mission to Beni Suef

On March 17, 2025, the Micro, Small and Medium Enterprises Development Agency مشاريع مصر جهاز تنمية المشروعات - Msme organized a field mission for the European Union in Egypt represented by Mr. René Gorenflo in Al Fashn, Beni Suef. The visit aimed at showing how microfinance institutions (MFI/NGOs) have upgraded their services driving entrepreneurship, economic resilience, and community development under the MSME Financing Project II.

The mission began with a visit to Al Ikhlas Coptic Loyalty Association, where a discussion was held around its financing model and portfolio growth as well as future plans to expand services to reach out to different tiers of MSMEs while continuing to provide support to unprivileged small borrowers.

The mission visited four of the association’s beneficiaries – including three women - who were able to grow their businesses through loans provided by MSMEDA via KfW credit line under the MSME Financing Project II managed by GOPA AFC. They included:

🔨 Carpenter who used the loan to purchase modern machinery and expand production capacity which helped him to expand his business outside Beni Suef.

✂ Hairdresser who was able to expand her salon by purchasing additional equipment and hiring more employees.

✨ Owner of an Accessories shop who leveraged the loan to grow her accessories trading business and securing a prime retail location in Al-Fashn.

🏣 Owner of a Trade Shop who was able to expand her retail business through increasing inventory.

These success stories illustrate the impact of the MSME Financing Project II and the transformative power of microfinance in fostering entrepreneurship, income generation and job creation.

📢 Fostering MSME-driven inclusive growth in Egypt: A Collaborative Dialogue with مشاريع مصر جهاز تنمية المشروعات - Msme,...
19/03/2025

📢 Fostering MSME-driven inclusive growth in Egypt: A Collaborative Dialogue with مشاريع مصر جهاز تنمية المشروعات - Msme, KfW and European Union in Egypt

MSMEDA hosted today a high-level dialogue with KfW and the EU, discussing financial and non-financial support initiatives developed under the MSME Financing II Programme, a Program executed by the Egyptian MSME Development Agency (MSMEDA) with the technical support of GOPA AFC.

The session was opened by MSMEDA CEO, Dr. Bassel Rahmy, who reaffirmed the agency’s mandate to foster inclusive and sustainable growth through policy and strategies' formulation, stakeholders' coordination and facilitation of access to finance, notably in the manufacturing and agriculture sectors. He underscored the crucial role of Non-Financial Services (NFS) as the starting point of MSME’s development path, improving access to finance and reaching out to the vast pool of underserved enterprises. This will be facilitated through advancing MSMEDA's e-services in cooperation with international development partners.

Dr. Christoph Schaefer, Director of KfW Cairo Office, emphasized the alignment of MSMEDA’s strategy with KfW Group’s mission to drive development impact, particularly in underserved areas. Mr. René Gorenflo, EU Delegation, highlighted the significance of the MSME Financing II project in shaping a national SME platform - a key tool for MSMEs to access e-services, technical support, and tailored financing solutions. He also stressed the importance of institutional coordination, inclusive stakeholder engagement, ensuring short-term impact for vulnerable groups. Ms. Katharina Collin, KfW, also stressed that the MSME Financing II project already supported the Egyptian economy post-Covid, but was now entering a new phase that will support targeted MSME segments through a set of incentives.

This strategic dialogue aligned visions and set the stage for launching four key initiatives:
✅ Support to SME Innovation financing and job creation
✅ Innovation-focused Business Development Services
✅ Microfinance Professionalization
✅ National SME Platform

These efforts mark a significant step towards empowering Egypt’s MSMEs, fostering innovation, and ensuring sustainable economic growth.

Stay tuned for more updates!

Today, the project's Digital Transformation Specialist, Mr. Malith Gunasekera, met with Dr. Bassel Rahmy, CEO of MSMEDAE...
02/02/2025

Today, the project's Digital Transformation Specialist, Mr. Malith Gunasekera, met with Dr. Bassel Rahmy, CEO of MSMEDAEG, to discuss the agency’s digital transformation goals and needs; one of the main priorities of MSMEDA at the current phase that would enhance its economic, social, and developmental impact.

The initiative is guided by a blueprint and roadmap developed under the MSME Financing II Project which is funded by KfW and European Union and managed by GOPA AFC. These tools serve as a compass for aligning and coordinating interventions among various stakeholders and partners, with a particular focus on digitalizing lending operations which is a fundamental step towards developing front-end digital services.

The ultimate goal of this initiative is to facilitate access to affordable digital financial services; specifically businesses in rural and unprivileged regions of Egypt, thereby expanding Financial Inclusion. Additionally, it will enable MSMEDA to introduce a wider range of MSME loans tailored to serve different productive sectors.

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