In a context where SMEs in Egypt have limited access to capital, the EBRD has disbursed resources which will be returned directly to them. The Bank has granted under the Green Economy Finance Facility its third facility to the National Bank of Egypt.
The National Bank of Egypt (NBE), the tenth largest bank in Africa and the Middle East by the size of its assets ($ 125 billion as of June 30, 2020) will benefit from a loan of $ 100 million granted by the European Bank for Reconstruction and Development (EBRD).
The facility, which will be on-lent in the form of loans to small and medium-sized enterprises (SMEs), aims to support the Egyptian economy. It will specifically target companies operating in the sectors of commerce, industry and sustainable agriculture.
The financing is the third EBRD loan to Egypt’s oldest and largest commercial bank under the Green Economy Financing Facilities (GEFF), a facility that aims to encourage investment in high-performance technologies related to energy efficiency or the mitigation of the effects of climate change.
“The National Bank of Egypt, which has been cooperating with the EBRD since 2013, will provide financing obtained to SMEs to help improve the use of energy, water and land resources as well as investments in high performance technologies,” said the Bank in an official communication.
In Egypt, a country with a population of over 106 million, SMEs represent 25% of GDP and concentrate 75% of employment. They play a vital role in the economy, but are limited by access to capital and are often excluded from financing methods offered by traditional banks.