The Agricultural Bank of Egypt (ABE) has revealed the key features of its financing structure until the end of September 2023.
According to figures obtained by Daily News Egypt, the bank has strengthened its support for small and medium-sized enterprises (SMEs), recognizing their role as the main driver of the national economy. SMEs have the ability to create employment opportunities for young people, address the issue of unemployment, and empower women.
As of the end of September 2023, the volume of SME financing reached EGP 45.025bn, benefiting 546,015 clients. This represents 64% of the bank’s total credit portfolio.
The bank has confirmed its priority of supporting and financing the SME sector, given its importance in supporting the national economy and development efforts, particularly in rural areas. With a network of over 1,150 branches, the bank is able to reach SME owners in small cities, villages, and hamlets.
The financing portfolio for micro-enterprises has experienced significant growth, accounting for 48% of the loan portfolio. The volume of financing granted to individual micro-enterprises amounted to approximately EGP 33.852bn, benefiting 430,217 establishments. Additionally, EGP 588 million was granted to 2,015 micro-enterprises operated by companies.
For small enterprises, EGP 6.281bn was granted to 6,783 companies, while 107 medium enterprises received financing worth EGP 4.079bn.
ABE’s role in financing major projects and companies has also expanded. The bank now finances 154 major companies operating in the agricultural sector and related activities, with a total financing volume of approximately EGP 14.892bn. This is a significant achievement that contributes to stimulating investment in the agricultural sector.
Furthermore, ABE provides the Bab Rizq microfinance program, which is a prominent financing program for micro-enterprises in rural areas. The program targets rural women, youth, small-scale merchants, and craftsmen. It aims to support the goals of the Haya Karema presidential initiative.
The volume of financing provided through the Bab Rizq program has exceeded EGP 500m, benefiting approximately 45,000 clients. Women represent about 60% of the beneficiaries. The program offers easy financing of up to EGP 15,000 with a simplified and decreasing annual interest rate. Customers can obtain a loan using only their IDs and a utilities receipt, without any complications. The program aims to support existing micro-enterprises and those waiting to be launched, providing new sources of livelihood and helping to increase income for families.
Most of the program beneficiaries are rural women who are economically empowered by launching their own projects in areas such as poultry farming or traditional home industries like food production, dairy products, and simple handicrafts.
Within the framework of the Egyptian Family Development Initiative to finance micro-enterprises, ABE has recently signed a financing contract with MSMEDA. The agreement, worth EGP 60m, is funded by the French Development Agency. It aims to finance 3,000 micro-projects for women in rural areas through the Bab Rizq program.
