The EU-funded SANAD Fund for MSME announced early this week that it has provided a top-up loan of USD 15 million to the Export Development Bank of Egypt (EBE). With this investment, the partners aim to channel much-needed financing to agricultural and small and medium-sized exporters as well as microfinance institutions (MFIs) in Egypt in response to the economic difficulties brought about by COVID-19.
One of the first banks in Egypt to target lending to small and medium enterprises (SMEs), EBE today plays a vital role in serving Egyptian exporters, many of whom are agricultural enterprises and SMEs. The bank also provides funding to microfinance institutions to serve local entrepreneurs.
SANAD’s first investment into EBE in 2018 supported the bank in expanding its institutional capacity and lending infrastructure, in addition to providing technical assistance to the bank’s SME customers. The new top-up facility will continue the success of this partnership, especially in an environment where MFIs and SMEs are particularly affected by the economic effects of the COVID-19 outbreak.
Established in 2011, the SANAD Fund for MSMEs finances micro, small and medium enterprises and low-income households in the Middle East and North Africa via qualified local lenders. SANAD thereby fosters economic development and job creation – including youth employment – agriculture, affordable housing, and innovations in finance and financial technologies. SANAD’s investors include the KfW Development Bank and the European Union.
SANAD Fund – website