The European Bank for Reconstruction and Development (EBRD) has approved developmental financing exceeding $532 million targeted towards private sector institutions in Egypt.
The funding aims to boost economic development, and financial inclusion efforts in the Egyptian banking sector, and tackle global challenges.
The EBRD board of directors greenlit developmental funding worth $400 million for the National Bank of Egypt, supporting micro, small, and medium-sized enterprises (MSMEs).
This funding will primarily target regionally-operated companies led or owned by young entrepreneurs. It is a significant move to enhance financial services directed towards these types of companies, according to a statement from the Ministry of Cooperation.
The project also strives to mobilize private-sector financing to achieve economic development in the face of global challenges. In addition, it seeks to reinforce financial inclusion initiatives within the Egyptian banking sector.
In a related context, the EBRD board has approved developmental funding of $100 million for Banque Misr. This funding aims to support the growth of MSMEs, promote comprehensive and sustainable growth, and increase financial services directed towards these types of projects in areas lacking financial services.
Further, the EBRD has approved new funding for Mediterrania Capital IV, amounting to €30.2 million, equivalent to $32.5 million. This fund aims to direct €350 million in investments towards medium-sized companies in healthcare, retail, financial services, and manufacturing sectors.
These efforts are expected to stimulate economic growth in Egypt, Tunisia, and Morocco, with a particular focus on companies led by women, enhancing their access to necessary economic opportunities.
