Tamweely Microfinance and USAID Collaborate to Provide Loans to Small Farmers

Tamweely Microfinance has signed a cooperation agreement with the Feed the Future Egypt rural agribusiness strengthening project, an activity funded by USAID.

Through this partnership, Tamweely will begin offering financial loans for horticultural crops specifically designed to meet the needs of small farmers. This is ultimately designed to increase the incomes of smallholder farmers and processors, as well as to create employment opportunities for women and youth.

The Feed the Future Egypt Rural Agribusiness Strengthening Project aims to strengthen the Egyptian horticultural market system and improve the capacities of smallholder farmers and processors.

It also aims to improve the capacity of producer organizations and horticultural institutions, through the transfer of agricultural knowledge and training. Together, they will familiarize farmers with the production of higher value-added horticultural crops.

Improving the value chain will increase employment and income for vulnerable Egyptians, and enhance food security across the country.

Amr Abou El Azm, President of Tamweely Microfinance, expressed his confidence in this new partnership.

“Tamweely proudly enriches its product portfolio by designing and delivering new financial loans for horticultural crops targeting smallholder farmers in Upper Egypt and the Delta,” he said. “Therefore, we are delighted to partner with the USAID-funded project, which will support us. by gaining an in-depth understanding of the needs of smallholder farmers and mitigating the risks associated with credit products.

Abou El Azm added, “This partnership is part of the company’s product diversification strategy to meet the needs of different target segments, increase product efficiency and be more flexible to meet customer needs.

Ahmed Khorched, CEO and Managing Director of Tamweely, said: “With the objective of expanding access to finance and financial inclusion, this partnership goes one step further with Tamweely by targeting the agricultural sector and small farmers . “

“By working with the USAID-funded project, we will be able to develop new financial loans for horticultural crops for small farmers that will generate positive changes in their incomes and ultimately have wider impacts on their well-being. economic, ”he added,“ The pilot phase will target 1,000 people and provide them with financial loans for horticultural crops to invest in their agricultural business in order to increase their productivity and competitiveness.

Walid Sallam, Part Leader of the Feed the Future Egypt Rural Agribusiness Strengthening Project, praised Tamweely’s efforts, saying: “We are confident that Tamweely brings abundant expertise that enables it to act as a full partner in the development of the project.

He added that the partnership is expected to yield results in the development and financing of modern irrigation systems, the construction of post-harvest operations centers and the establishment of small and medium-sized service facilities that cater for to the food processing sector in Egypt.

Sallam said the project would provide technical support to Tamweely in the form of institutional strengthening activities for a number of company employees. This would focus on the design and implementation of agricultural loan products linked to the target crops.

It is in line with the capacities and needs of the farmers targeted by the project with the least potential credit risk.

Alaaeldin Baioumi, Senior Project Access to Finance Specialist, said: “New financial products for horticultural crops focused on harvesting and post-harvest management will require additional labor providing employment opportunities. and income to workers. “

Baioumi also said that about 25% of loans to small farmers will go to women and young people.

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