The Sovereign Fund of Egypt and Etisalat Egypt launch ‘Erada Microfinance’
By Edlyn Cardoza
The Sovereign Fund of Egypt (TSFE) and Etisalat Egypt by e& have partnered to launch the new company Erada Microfinance to provide access to a wide range of financial services to micro and small enterprises. The partnership is in line with Egypt’s Vision 2030 of supporting financial inclusion and creating opportunities for the youth through providing innovative financial services and digitally-enabled lending products.
“The establishment of Erada is in alignment with the Government of Egypt’s directives to facilitate small and micro enterprises’ access to financing and creating additional job opportunities for the youth,” said H.E. Dr. Hala H. ElSaid, Egypt’s Minister of Planning and Economic Development and Chairperson of TSFE. “FinTech enabled businesses with strong financing facilities support Egypt’s national agenda of digital transformation and financial inclusion across all vital economic sectors to achieve Egypt’s Vision 2030 as well as the United Nations Sustainable Development Goals; namely SDG 5: Gender Equality; and SDG 8: Decent Work and Economic Growth.”
The founders and shareholding structure of Erada, in addition to TSFE and Etisalat Egypt by e&, includes Mr.Amr Abouelazm, an industry veteran in non-banking financial services who has also been appointed as Vice Chairman & Chief Executive Officer of Erada.
“The launch of Erada is carried out through TSFE Financial Services and Fintech Subfund in partnership with Etisalat Egypt by e&, and Mr.Amr Abo El Azm, in line with TSFE’s strategy of maximising value through private sector partnerships and partnering with industry veterans,” said Mr.Ayman Soliman, Chief Executive Officer of TSFE. “Having Etisalat Egypt as a partner enables Erada to immediately launch a full suite of innovative lending products that are catered to market and customer needs.”
In Egypt, the number of beneficiaries who have received microfinance loans is on the rise, with a 46% annual growth rate according to the end of September 2022, reaching approximately EGP 35.5 billion, and 3.8 million beneficiaries, of which 60% were women amounting to 2.3 million beneficiaries, and 64% were youth.
“Egypt is well positioned for an immediate and full launch of its digital economy in line with TSFE’s financial services and FinTech Subfund’s strategy of creating value and returns across all sectors and specifically the financial services and FinTech sectors, stimulating economic growth and accelerating the transformation process through partnerships with strategic investors,” Soliman concluded.
Eng. Hazem Metwally, Chief Executive Officer of Etisalat Egypt, praised the partnership with TSFE; and the launching of Erada and said, “The partnership will be managed through an independent board of directors. Etisalat Egypt’s investments have reached over EGP 70 billion over the span of 15 years, and it strives towards empowering MSMEs through access to finance and tech-enablement in Egypt through Erada as a result of the partnership with TSFE and the experts in the industry of non-banking financial services.”
“Etisalat Egypt aims to enhance the business sector and consolidate financial inclusion mechanisms to support the economic growth in line with Egypt’s Vision 2030, and it is also in line with e&’s agenda, which services exist in 16 countries worldwide,” said Eng Metwally.
“The company is collaborating with the full ecosystem and beneficiaries including banks, corporates and entrepreneurs, to provide a gateway to innovative products to support this vital sector in Egypt, allowing access to finance, creating jobs and additional income,” said Mr.Amr Aboelazm, Cofounder, CEO, and Vice Chairman of Erada. “The company has finalized the requirements with the Financial Regulatory Authority (FRA) and obtained the license to operate in record timing.”
With his extensive experience in managing non-banking financial institutions for over 30 years, Aboelazm has held the position of Chairman and CEO of Tamweely Microfinance, the Co-founder, and CEO of Tanmeyah for Microenterprise Services, prior to which he served as Deputy Director of the German Development Bank (KFW) in Egypt.
IBSi Daily News Analysis
December 05, 2023
Why joining forces is key to boosting bankability and bridging climate finance gapsRead More
IBSi FinTech Journal
- Most trusted FinTech journal since 1991
- Digital monthly issue
- 60+ pages of research, analysis, interviews, opinions, and rankings
- Global coverage