The MENA Guarantee Facility

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Project duration

2017-2027

Budget

€24 million
Egypt
Egypt

Brief Description

The purpose of the project is to encourage a select number of financial institutions to increase their lending activity to SMEs by reducing their exposure to risk. It therefore consists in the setup of a pool of instruments composed of Risk-Sharing Facilities (RSFs) and complementary instruments to increase financial institutions’ SME portfolios.

South Neighbourhood countries covered: Algeria, Egypt, Jordan, Lebanon, Morocco, Palestine, Tunisia.

Objectives

- Increase in local banks’ lending to SMEs, improving access to finance for SMEs on a sustainable basis;

- Enhance and strengthen the capacity of local financial institutions for risk taking and financing to SMEs;

- Bridge the financial services gap for SMEs and make a meaningful contribution towards greater financial inclusion;

- Finance business operations, including but not limited to working capital, equipment and machinery financing.

Actions in brief

- Support to Local Guarantee Funds (LGFs);

- Offer loans in local or foreign currency as well as Technical Assistance (TA);

- Provide credit risk mitigation through risk-sharing facilities (RSFs) to local Financial Institutions (FIs);

- Finance business operations, including but not limited to working capital, equipment and machinery financing.

Implementing partner: Agence Française de Développement (AFD)

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