Tamweely Microfinance has signed a cooperation agreement with the Feed the Future Egypt Rural Agribusiness Strengthening Project, a USAID-funded activity. Through this parrship, Tamweely will begin offering financial loans for horticultural crops specifically designed to meet the needs of smallholder farmers, which will ultimately increase income of smallholder farmers and processors as well as creating job opportunities for women and youth.
The Feed the Future Egypt Rural Agribusiness Strengthening Project aims to strengthen Egypt’s horticulture market system and improve the capacity of smallholder farmers and processors, producer organizations, and horticultural institutions through agricultural knowledge transfer and trainings to familiarize farmers with higher-value production of horticulture crops. Improvements to the value chain will raise employment and incomes for vulnerable Egyptians and enhance food security throughout the country.
Mr. Amr Abou El Azm, Chairman of Tamweely Microfinance, expressed confidence in this new partnership, saying, “Tamweely is proudly enriching its product portfolio by designing and offering new financial loans for horticultural crops targeting smallholder farmers in Upper Egypt and Delta. Therefore, we are pleased to partner with the USAID-funded project which will support us in acquiring an in-depth understanding of the needs of smallholder farmers and mitigating risk associated with credit products.”
Mr. Amr added that “this partnership is in line with the company’s strategy of product diversification to meet the needs of the different targeted segments, increase product effectiveness, and be more flexible in meeting client needs.”
Mr. Ahmed Khorched, CEO and Managing Director of Tamweely, expressed his pleasure with the partnership by saying, “With the objective of expanding access to finance and financial inclusion, this partnership takes Tamweely one step further by targeting the agricultural sector and smallholder farmers. By working with the USAID-funded project, we will be able to develop new financial loans for horticultural crops for smallholder farmers which will generate positive changes in their income and ultimately have wider impacts on their economic well-being. The pilot phase will target 1,000 and will provide them with financial loans for horticultural crops to invest in their agriculture business to increase their productivity and competitiveness.”
Dr. Walid Sallam, Chief of Party for the Feed the Future Egypt Rural Agribusiness Strengthening Project, a USAID-funded activity, praised the efforts made by Tamweely, saying “We are confident that Tamweely comes bearing abundant expertise that enables it to act as an integral partner in development with the Project. Our partnership is expected to show results in developing and financing modern irrigation systems, building post-harvest operation centers, and establishing small and medium-size service facilities that cater to the food processing sector in Egypt.” Dr. Walid said that the project would provide technical support to Tamweely in the form of institutional building activities for a number of company employees on designing and implementing agricultural lending products related to the target crops in line with the capabilities and needs of the Project’s targeted farmers with the least potential credit risk.
Mr. Alaaeldin Baioumi, the Project’s Senior Access to Finance Specialist, said that “the new financial products for horticultural crops focusing on harvesting and post-harvest handling purposes will require additional workforce providing job and income earning opportunities for laborers. Approximately 25% of the loans to smallholder farmers will be targeted towards women and youth.”
Tamweely Microfinance started operation in August 2018 with capital of EGP 75 million to empower small entrepreneurs, women, and craftsmen by funding their small and micro projects. The shareholders are an alliance of three companies: NI Capital Holding, Ayady for Investment and Development, and Post for Investment Co.
About the Project:
The Feed the Future Egypt Rural Agribusiness Strengthening Project, a USAID-funded activity, aims to develop the horticulture industry’s ability to better respond to domestic and international buyer demand and improve the industry’s competitiveness by applying a market-driven, systems- strengthening approach. The Project will ultimately create a more competitive and inclusive Egyptian economy through horticulture sector growth, with special focus on securing employment and increasing agriculture-related incomes of smallholder farmers.”