The Micro, Small, and Medium Enterprises Development Authority (SMEDA) and the Agriculture Bank of Egypt (ABE) signed a contract worth EGP 50m on Wednesday, for the development of agricultural, livestock, and new small irrigation systems projects nationwide.
The signing ceremony was attended by Nevin Gamea, CEO of SMEDA, and Elsayed Elkosayer, chairperson of ABE. It comes as part of both institutions’ strategy of financing small projects, especially agriculture and livestock, in line with the state’s policy to develop this important sector.
The contract aims to finance all new and existing small projects in the agricultural sector and related activities, as well as irrigation systems’ projects, provided that the technical and economic feasibility as well as the environmental compliance of all these projects were proven.
According to Gamea, the SMEDA is keen to diversify the areas of activities it finances.
She stressed the importance of cooperation between the ABE and SMEDA in financing small projects, especially in rural areas, as it will benefit small farmers and livestock breeders nationwide.
According to Gamea, the value of the financing contracts concluded between the two parties since 1992 reached EGP 2.8bn, noting that all have been disbursed through over 156,000 loans directed to new, and existing small projects.
For his part, Elkosayer said that this contract confirms the ongoing partnership between the ABE and SMEDA in financing agricultural, and livestock projects.
He added that the bank managed through its branches spread throughout 1,210 cities and villages, to expand the utilisation of this funding, which contributes significantly to achieving balanced and sustainable development in underprivileged areas. It also contributes to achieving financial inclusion in rural areas.