EBRD provides Banque Misr with $100M loan to support MSMEs

CAIRO - 17 July 2023: The European Bank for Reconstruction and Development (EBRD) announced Monday the provision of a $100 million loan to Egypt’s  Banque Misr for the purpose of on-lending to local micro, small, and medium-sized enterprises (MSMEs).

 

The EBRD elaborated that the provided loan will contribute to the expansion of Banque Misr's activities beyond the Greater Cairo region and help increase the availability of medium-term funding for underserved Egyptian MSMEs.

 

Established in 1920, Banque Misr is the second-largest bank in Egypt and has been a partner of the EBRD since 2017. Over the years, the EBRD and Banque Misr have collaborated on various financing initiatives, including small business loans, trade finance facilities, and green financing.

 

Earlier in July, the EBRD announced supporting Egypt’s private sector institutions through a more than $532 million soft development financing package.

 

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, being a founding member of the EBRD, has received significant investment from the bank since 2012. With over €10.3 billion invested across 164 projects in the country, the EBRD has played a crucial role in supporting Egypt's economic development.