EBRD approves financing worth $500 mn for the benefit of NBE and Banque Misr

EBRD has approved developmental financing of $400 mn for National Bank of Egypt and $100 mn for Banque Misr to enhance financing for small, medium, and micro-sized projects.

This financing aims to support small, medium, and micro-sized projects, with a focus on regional companies led or owned by young entrepreneurs, enhancing financial services directed towards this type of companies.

The funding is intended to strengthen financing for small, medium, and micro-sized projects, supporting comprehensive and sustainable growth and increasing financing for such projects in underserved areas to access financial services.

Additionally, the project will help mobilize funding for the private sector to achieve economic development amid global challenges and enhance financial inclusion in the Egyptian banking sector.

EBRD has also approved facilitative developmental financing exceeding $532 mn for private sector corporates in Egypt.

This is part of the ongoing efforts through international partnerships to empower the private sector in Egypt and provide facilitative developmental financing through multi-party and bilateral development partners to meet developmental priorities. It is in line with the Egyptian-Qatari strategy for 2022-2027.

The bank has also approved new financing for Mediterrania Capital IV, amounting to EUR 30.2 mn (equivalent to $32.5 mn). The fund targets investments of EUR 350 mn for medium-sized companies in the healthcare, retail, financial services, and manufacturing sectors to promote economic development in Egypt, Tunisia, and Morocco, with a special focus on companies led by women to enhance their access to necessary economic opportunities.

It is worth mentioning that Dr. Rania Al-Mashat, Minister of International Cooperation, witnessed the signing of an agreement between the International Finance Corporation (IFC) in March last year to provide EUR 25 mn to the fund during the visit of the Deputy Head of the institution, Sergio Pimenta.

Dr. Rania Al-Mashat, Minister of International Cooperation and Egypt's Governor at the EBRD, stated that the strong partnership with the European Bank and private sector corporates in Egypt under the joint Egyptian-Qatari strategy for 2022-2027 works towards achieving three main objectives, including enhancing competitiveness, increasing growth rates, and stimulating the role of the private sector in development.

She highlighted that over 78% of the European Bank's investments in Egypt are already directed towards the private sector in various fields, reflecting the role of international partnerships in opening new horizons for private sector participation in development and enhancing its role in achieving comprehensive and sustainable growth.

She emphasized the Ministry's keenness to position the private sector as a key and effective axis in all strategies with multilateral and bilateral development partners and international institutions, in line with the state's priorities aimed at expanding private sector participation. She commended the partnership with the European Bank.

This partnership is aimed at implementing various projects, such as the first dry port in the Sixth of October City, the implementation of the Benban Solar Energy Complex in Aswan Governorate, and the development of metro lines. It also includes expanding climate action projects and the green hydrogen strategy.

The European Bank for Reconstruction and Development started operations in Egypt in 2012, with investments exceeding EUR 10 bn for the implementation of 163 projects, over 78% of which are directed to the private sector.

It is worth mentioning that the Minister  participated in the annual meetings of the European Bank for Reconstruction and Development held in Samarkand, Uzbekistan.

Egypt was chosen as the Deputy Chair of the upcoming annual meetings for 2024 to be held in Yerevan, Armenia, which confirms the strong relationship with the bank. Several meetings were also held with the bank's President, Odile Renaud-Basso, and its various departments to discuss future cooperation portfolios, as well as board decisions to expand operations in Sub-Saharan Africa and Iraq.