OFID Allocates US$40M to Enterprise Growth in Egypt

OPEC Fund for International Development (OFID) has signed a US$40 million loan agreement with Egypt 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 Governments 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, OFID Director-General Suleiman 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." OFIDs 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.