Abu Dhabi: The Khalifa Fund for Enterprise Development (KFED) has signed an agreement with the government of Egypt to extend a $200 million (Dh734 million) loan to micro-entrepreneurs in the country.
The financial aid will support 100,000 projects and create 120,000 jobs by 2020 in Egypt, KFED said in a press statement.
The loan agreement was signed in Cairo by Hussain Jasem Al Nowais, Chairman of the Khalifa Fund for Enterprise Development, and Dr Najla Al Ahwani, Minister of International Cooperation in Egypt, in the presence of Ebrahim Mahlab, Prime Minister of Egypt, and Dr Sultan Ahmad Sultan Al Jaber, UAE Minister of State.
Dr Al Jaber affirmed that the UAE leadership attaches great importance to promote development in Egypt through supporting entrepreneurship, combating poverty in underdeveloped areas, and empowering women and young people in the country.
“The microenterprise sector acquires great importance in the development efforts as it aids job creation and enhances the livelihood of low-income families,” Dr Al Jaber said.
The loan will be directed towards microfinance development in remote and disadvantaged areas of Egypt. The agreement will be designed as a soft loan with lenient terms and conditions over a 15-year tenure with a six-year grace period. The project aims to achieve a target of financing 70 per cent of projects in rural areas and 25 per cent of the loan will be allocated to finance women-led enterprises.
