The National Bank of Egypt (NBE) and the European Bank for Reconstruction and Development (EBRD) have just signed a $100 million financing agreement to support micro, small, and medium-sized enterprises (MSMEs), according to an official source in Cairo.
This new financing granted by the EBRD to the NBE represents an important milestone in this “long-standing partnership,” said EBRD Vice President Greg Guyett, currently visiting Egypt.
According to a statement released Monday, December 8, by the Ministry of Planning, Economic Development and International Cooperation, the agreement was signed by Guyett with the head of the National Bank of Egypt (NBE), Mohamed El-Etrebi, in the presence of the Minister of Planning, Economic Development and International Cooperation, Rania Al-Mashat, according to the same source.
“The Bank seeks to strengthen opportunities for micro, small and medium-sized enterprises (MSMEs) throughout the country, particularly those led by women and young people,” Guyett said, adding that this partnership would enable future generations of entrepreneurs to realize their potential and contribute to a more dynamic and sustainable economy.
The Egyptian minister affirmed his desire to “expand access to finance, increase production capacity, and ensure that overall growth reaches the entire country” within the framework of the partnership, emphasizing that his ministry is working “to empower the private sector and stimulate investment through concessional financing from banks and businesses.”
“Such an approach should improve the competitiveness and resilience of the economy and offer an economic model supported by the private sector and based on production sectors, in line with the national economic development strategy,” said Al-Mashat, who is also Egypt’s Governor to the EBRD.
“The EBRD is a key partner in the NWFE (Nexus of Water, Food and Energy) programme which has mobilized nearly $5 billion for the private sector in support of renewable energy projects,” she explained.
She stated that, through the Hafez platform, the ministry seeks to strengthen collaboration between the private sector and international financing institutions to facilitate access to more innovative financing mechanisms. Relations between Egypt and the EBRD have seen significant progress over the past five years.
The two parties have collaborated on various fronts to pave the way for private sector empowerment and promote development efforts.
Egypt is seen as one of the founding members of the EBRD. Since the start of its operations in Egypt in 2012, the Bank has invested over 13.8 billion euros in 209 projects, 80% of which are in the private sector.
AK/ac/fss/gik/APA
