The European Bank for Reconstruction and Development (EBRD) has announced its provision of a $100 million loan to Egypt's Banque Misr. The loan is intended to facilitate on-lending to local micro, small, and medium-sized enterprises (MSMEs) in Egypt.
The EBRD stated that this loan will support Banque Misr in expanding its activities beyond the Greater Cairo region and will contribute to increasing the availability of medium-term funding for underserved Egyptian MSMEs.
Banque Misr, established in 1920, is the second-largest bank in Egypt and has been a partner of the EBRD since 2017. The collaboration between the EBRD and Banque Misr has involved various financing initiatives, including small business loans, trade finance facilities, and green financing.
In addition to this loan, the EBRD recently announced its commitment to support Egypt's private sector institutions through a soft development financing package exceeding $532 million.
The package was divided to $400 million for the National Bank of Egypt (NBE), $100 million for Banque Misr, and €30 million for Mediterrania Capital fund, which accounts for more than $32 million.
More than 78% of the EBRD’s investments in Egypt are already directed to the private sector in various fields.
The $100 million package for Banque Misr aims to enhance financing directed to micro, small and medium enterprises (MSMEs) in a way that supports inclusive and sustainable growth, and to increase financing directed to MSMEs in areas that have less access to financial services.
The $32.5 million for the Mediterrania Capital IV Fund aims to direct investments of €350 million in investments for medium-sized companies in the health care, retail, financial services and manufacturing sectors to develop the economy in Egypt, Tunisia and Morocco, paying special attention to companies led by women to enhance their access to the necessary economic opportunities.
Egypt is a founding member of the EBRD. Since the start of its operations there in 2012, the EBRD has invested more than €10.3 billion in 164 projects across the country.
EBRD
