LocationsFrom Aid to Empowerment: How Microloans Are Changing Lives Across Egypt
October 18, 2025
In a small village in Beni Suef, Hala remembers when each day felt uncertain.
“Before the loan, life was hard,” she says. “My husband is a farmer, and our income was never stable — some seasons were good, but other times we had no earnings at all. I always wanted to support him and find any work that could make a difference.”
Today, Hala runs her own small livestock business — something she never imagined possible a few years ago.
“I took a loan of 50,000EGP, she says proudly. “Now I have my own project, and I can help my husband. We’re even thinking of expanding — maybe one day, we’ll have our own small farm.”
This progress is part of a joint project by the Ministry of Social Solidarity, UNDP, and the European Union, which empowers beneficiaries of Egypt’s national social protection programme, Takaful and Karama, (T&K) by providing them with microloans and tailored support to establish small and microenterprises. Through the project, beneficiaries can transition from relying on financial assistance to building sustainable sources of income and long-term economic resilience, moving people from relying on assistance to building sustainable incomes. Across eight governorates — including Assiut, Sharqeya, Beheira, Beni Suef, Giza, Minya, Sohag, and Qena — hundreds of Egyptians are writing similar success stories to Hala’s.
Through cooperation with nine local NGOs, more than 869 micro-loans have been provided to Takaful and Karama beneficiaries, with a remarkable 100 percent repayment rate — a clear sign of ownership, discipline, and trust in the process.
In Minya, Yahia opens his small grocery shop every morning with confidence — a daily routine that fills his family with pride. “He sells and buys product for the kiosk on his own — I’ve written all the prices for him. It’s his business now, and he’s so proud,” his father says.
Yahia faced many challenges finding meaningful work and contributing to the household. But everything changed when his father learned about the project’s inclusive financial support for persons with disabilities. “I immediately applied for the loan,” he recalls. “We got it and started our small kiosk — and it truly changed our life.”
Special loan windows have been introduced for persons with disabilities, offering reduced interest rates and tailored training to promote inclusion and accessibility.
Another beneficiary from the same governorate, Mohamed, used to sell vegetables in the streets:
“When I got the loan — EGP 20,000 — I bought the tricycle and started delivering vegetables. Before, I could only buy small quantities. Now I buy four or five times more. It has made a huge difference.”
In Sharqeya governorate, Iman has been running her clothing store for a year now — a project that has brought stability and hope to her family. “I have three children in school, and things are going well,” she says., I worked as a tailor in a clothing factory. So, when times got tough for my husband and I, I thought of starting my own clothing shop. When I found out there was funding available through Takaful and Karama, I knew it was the right opportunity.
The idea for her project came from her own experience: “When I was younger, I worked as a tailor in a clothing factory. So, when times were tough for my husband and I, I thought of starting my own clothing shop. When I found out there was funding available through Takaful and Karama, I knew it was the right opportunity.”
For others, the support went beyond finance. Training sessions taught participants how to manage budgets, calculate profit and loss, and treat customers ethically. “They showed us how to manage and grow our business,” said Eman Shehata from El Minya Governorate. “We learned how to think like entrepreneurs, she added.
By combining financial inclusion with capacity-building, the project transforms vulnerable individuals from recipients of assistance into active economic participants — creating a ripple effect of empowerment within their communities.
Local NGOs also played a vital role in outreach, loan management, and business mentorship. As the Executive Director of “Together Association for Development and Environment” Ramez Tawadros put it:
“We helped people move from dependency to productivity — now they have their own income sources and can even employ others. This is sustainable change.”
The microfinance model also emphasizes fairness and affordability. “Unlike other places, here the profit margin is very low,” said another beneficiary. “It’s like borrowing from a cooperative — fair and simple.”
From tailoring workshops to livestock farming, from handicrafts to grocery stores, each business reflects the diversity and creativity of Egypt’s communities.
As one woman from Sharqeya summed it up:
“The local NGOs and my family always encourage me, and I support them in return. As long as we keep standing by each other, life will keep getting better.”