4
The European Bank for Reconstruction and Development (EBRD) is stepping up its support for micro, small and medium-sized enterprises (MSMEs) in Egypt by providing a US$ 40 million (€35 million) loan to EFG Holding.
This transaction marks the first EBRD facility extended directly to EFG Holding. The funds will be channelled through eligible subsidiaries of EFG Finance, the <a href="https://menainsights.com/dataflow-group-acquires-neac-to-create-global-pathways-for-healthcare-professionals/”>group’s non-bank financial institution (NBFI) platform, to businesses in rural areas and outside of Egypt’s principal urban centres where it is hardest to access finance. Addressing these financing gaps will help to increase private-sector activity and strengthen economic resilience.
The investment to face significant challenges. It also reinforces the EBRD’s ongoing commitment to supporting economies impacted by the Middle East conflict, providing liquidity to the private sector.
The agreement was signed at EFG Hermes’ 12th Annual Investor London Conference, which brings together global institutional investors, listed companies and capital-market participants to discuss opportunities across the Middle East and North Africa.
Francis Malige, EBRD Managing Director for Financial Institutions, said: “Expanding economic opportunities for MSMEs is central to Egypt’s long-term economic growth. Through this transaction, we are deepening our partnership with EFG Holding to ensure more local private businesses, especially those outside major cities, gain the resources they need to invest, innovate and ultimately contribute to a more resilient economy.”
Karim Awad, Group CEO of EFG Holding, said: “We continue to broaden our collaboration with the EBRD, expanding the range of financing available to support MSMEs through our fully fledged NBFI platform. Improving access to finance allows local businesses to realise their full economic potential, generating positive effects across the wider economy, a goal that sits at the core of EFG Holding’s strategic ambitions in Egypt.”
EFG Holding is a leading financial institution in Egypt with a presence across the Middle East and North Africa. It is longstanding partner of the EBRD, which has extended facilities to several of the Group’s subsidiaries, including Bank NXT, Tanmeyah and Valu. EFG Holding is listed in the Egyptian Stock Exchange and the London Stock Exchange.
Egypt is a founding member of the EBRD
Since starting operations there in 2012, the Bank has invested almost €15.4 billion in the country through 234 projects.