Sir Suma Chakrabarti with the Egyptian Minister of Investment and International Cooperation, Dr Sahar Nasr, and Banque Misr's Mohamed El Etreby, Akef Maghraby and Effat Ishak.
US$ 75 million loan to Banque Misr
The EBRD is providing a US$ 75 million loan to Banque Misr to support the growth and development of small and medium sized enterprises (SMEs) in Egypt.
SMEs account for over 90 per cent of enterprises in Egypt and contribute to the majority of total employment in the country. However, access to finance for SMEs remains limited and improving this situation has become a top priority for the authorities.
The EBRD credit line to Banque Misr will increase the availability of funding for SMEs by reaching out to new clients and regions outside the Greater Cairo region and Alexandria.
Sir Suma Chakrabarti, the EBRD President, said: “We are very pleased to partner with Banque Misr, a key strategic player in helping to develop the SME sector in Egypt. Small businesses are the backbone of the economy and increasing the availability of finance for this sector will contribute towards making the country’s economy more competitive and resilient.”
Mr. Mohamed El Etreby, Chairman of Banque Misr, said: “The cooperation between Banque Misr and the EBRD will support our strong objective to sustain the development of Egyptian SMEs, providing them with the financial resources to expand their businesses. Developing SME’s is key for the country as it provides much-needed job opportunities and contributes to the country’s overall economic growth.”
A technical assistance package will support Banque Misr to strengthen its skillsets and competitiveness in SME’s lending.
Egypt is a founding member of the EBRD and has been receiving funding since 2012. To date, the Bank has invested €3 billion in 66 projects in the country. The EBRD’s areas of investment include the financial sector, agribusiness, manufacturing and services, as well as infrastructure projects such as power, municipal water and wastewater services, and support for transport services. The Bank has also provided technical assistance to more than 600 small and medium-sized local enterprises.
