The European Investment Bank (EIB) has entered into a $ 100 million financing agreement with the Bank of Cairo. The terms and conditions for granting this line of credit have not yet been communicated.
The state-owned Egyptian bank will use the loan to finance small and medium-sized enterprises (SMEs) in the manufacturing and services sector. The loan will strengthen the working capital needs of the beneficiary companies.
The conditions of eligibility of SMEs for this funding have not been specified. The transaction marks the second financing agreement between the EIB and the Bank of Cairo.
Of all Egyptian SMEs with fewer than 100 employees, 55% work in the manufacturing industry. A large number of these companies are informal and have difficult access to external financing, underlines the EIB in a report of February 2020 entitled: “Banking in Africa: financing transformation amid uncertainty”.
Source Agence Ecofin May 2020