OFID allocates US$40m to enterprise growth in Egypt
Date
7/26/2016 9:10:25 AM
(MENAFN- Emirates News Agency (WAM))
Vienna, 26th July, 2016 (WAM) - The Director-General of the OPEC Fund for International Development (OFID), Mr Suleiman J Al-Herbish, and the Egyptian Minister of International Cooperation, Dr Sahar Nasr, have signed a US$40 million loan agreement to support small enterprises amongst marginalized groups in the country.
The OFID loan will finance a second phase of the Social Development Fund (SFD) lending program. SFD Phase I was approved by OFID in 2009 and its success has led to this second project. The SFD Phase II loan will furnish valuable financing opportunities to those most in need: enabling entrepreneurial enterprise and employment. It is expected to create more than 23,000 jobs across all 27 governorates of the country.
The SFD project is in line with the Government's overall strategic objectives to increase employment opportunities and promote economic growth in the country. SFD Phase II will focus on sectors that are most likely to provide employment such as industry and manufacturing, and stipulates that a percentage of funding is directed to women and young graduates.
Speaking at the loan signature, Mr Al-Herbish emphasised the pivotal role economic growth plays in poverty reduction. He expects the project "will contribute to improving the socio-economic conditions of local communities by increasing the income of poor households throughout the country."
Egypt's rapidly growing population is largely aged between 1564 years old and youth unemployment rates are very high (42 per cent in 2014). Therefore, targeting youth employment is a priority. Within this context, the Government has requested donor community support to finance job creation projects and assist the country in promoting rapid economic growth and increasing incomes for the poor. OFID is one of many donors responding to this appeal.
Al-Herbish reassured Minister Nasr that OFID would "continue to support efforts toward socio-economic development to achieve unprecedented levels of growth and prosperity in Egypt".
In her own statement, Dr Sahar Nasr thanked OFID for its longstanding support to the people of Egypt. She explained that the present loan would help improve living standards and promote sustained economic growth for the country.
OFID's cooperation with Egypt dates back to 1977. Since then, OFID has provided the country with close to US$1 billion in development financing, covering the agriculture, education, energy, health, national development bank sectors, as well as those of a multi-sectoral nature.
WAM/tfaham