The EBRD Board of Directors has approved soft development financing worth more than $532m for private sector institutions in Egypt.
The financing includes a $100m development loan to Banque Misr to enhance financing directed to micro, small and medium enterprises (MSMEs) in a way that supports inclusive and sustainable growth. The loan will also help to increase financing directed to MSMEs in areas that have less access to financial services.
In addition, the EBRD has approved a new financing for the Mediterrania Capital IV Fund worth €30.2m, equivalent to $32.5m. The fund aims to direct investments of €350m 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. The fund will pay special attention to companies led by women to enhance their access to the necessary economic opportunities.
Rania Al-Mashat, Minister of International Cooperation and Governor of Egypt at the EBRD, welcomed the approvals, noting that the close partnership between the EBRD and Egypt’s private sector institutions is essential to achieving the country’s development goals. She highlighted that more than 78% of the EBRD’s investments in Egypt are already directed to the private sector in various fields.
The Minister stated that the relations between Egypt and the EBRD are reflected in strengthening development efforts in many sectors, especially SMEs, combating climate change, promoting job opportunities, and stimulating the private sector in general. The bank provided financing during the past year worth €737m for the private sector to support SMEs, while the bank’s total investments in Egypt amounted to €1.3bn in 2022.
Al-Mashat indicated that the Ministry of International Cooperation is keen to place the private sector as a main and effective pillar in all strategies with multilateral and bilateral development partners and international institutions, especially in implementing the country’s priorities aimed at expanding the base of private sector participation.
She appreciated the partnership with the EBRD in the implementation of many projects, including the first dry port on the 6th of October City, the implementation of the Benban Solar Energy Complex in Aswan, the development of metro lines, in addition to the expansion of climate action projects and the green hydrogen strategy.
