EBRD supports DeFacto expansion in Egypt

• EBRD loan to DeFacto Egypt fuels local expansion
• Project to also advance digital initiatives, finance working capital needs
• DeFacto committed to inclusive growth in the sector

The European Bank for Reconstruction and Development (EBRD) is supporting retailer DeFacto in expanding its footprint in Egypt by providing a loan in Egyptian pounds equivalent to US$ 25 million.

The loan is being provided to DeFacto Egypt, part of the Turkish retailer DeFacto Perakende Ticaret, to support the company’s expansion in Egypt, expanding its retail footprint by 20,000 m2 (up to 20 new stores), advancing its digitalisation initiatives, increasing local production and financing additional working capital needs to grow operations.

Founded in 2005, DeFacto Perakende Ticaret is Türkiye’s second-largest apparel retailer. It operates more than 500 stores globally and serves customers in 100 countries through online and offline channels. The company offers affordable fashion for men, women and children and employs over 10,000 people. It is active in a number of economies where the EBRD operates.

In addition to providing a foundation for the company’s broader expansion plans in Egypt, the EBRD’s investment will support the company in tackling persistent gender disparities in Egypt’s wholesale and retail trade sector, where women remain underrepresented.

As part of the project, DeFacto Egypt will increase its female workforce ratio to 30 per cent within the next three years. The firm will also introduce an internship programme with a minimum 35 per cent participation rate for women, providing valuable pathways for young Egyptians to develop their skills through work-based leaning and mentorship for careers in retail.

Mehmet Erdem Yasar, EBRD Deputy Head of Türkiye, said: “We are pleased to be supporting the international expansion of Turkish companies as they grow their global footprint. This investment not only boosts the competitiveness of Türkiye’s private sector, but also brings new energy, expertise and competition to the sector in Egypt. We are confident that DeFacto’s investment will strengthen the company and help deepen Egypt’s retail sector.”

Önder Şenol, President of Investments and Growth at DeFacto, said: “This investment by the EBRD marks an important milestone in DeFacto’s growth journey in Egypt. We see Egypt not only as a high-potential market, but also as a strategic hub for our regional operations. With this financing, we aim to accelerate our store expansion, strengthen local production capabilities and further advance our digital transformation initiatives. Beyond growth, we are committed to creating long-term value through inclusive employment, talent development and responsible business practices. We are proud to deepen our partnership with the EBRD and to contribute to the sustainable development of Egypt’s retail ecosystem.”

The EBRD is one of Türkiye’s key investors, with more than €23 billion committed through over 500 projects and trade finance limits since 2009, largely in the private sector.