EBRD extends $40 million MSME financing facility to EFG Holding in Egypt

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EBRD $40M MSME facility Egypt

Highlights

EBRD extends a $40 million MSME financing facility—its first direct funding to EFG Holding—to support Egyptian micro, small, and medium-sized enterprises, especially in rural areas.
The facility, channelled through EFG Finance subsidiaries, aims to boost private-sector growth and economic resilience by improving access to finance for businesses outside Egypt's principal cities.
The transaction reinforces EBRD’s support for economies affected by Middle East conflict and brings its total investment in Egypt to almost 15.4 billion euros since 2012.

Loan structure and distribution plan

As reported by EBRD, the financing marks the first facility the bank extends directly to EFG Holding. The funds are being channelled through eligible subsidiaries of EFG Finance, the group’s non-bank financial institution platform, to support micro, small and medium-sized enterprises across Egypt.

The bank says the facility is aimed at businesses in rural areas and beyond Egypt’s principal cities, where financing is harder to obtain. By addressing those gaps, the investment is intended to boost private-sector activity and support economic resilience.

The agreement is signed at EFG Hermes’ 12th Annual Investor London Conference, which brings together institutional investors, listed companies and capital-market participants to discuss opportunities across the Middle East and North Africa.

Private-sector support in Egypt

Francis Malige, EBRD Managing Director for Financial Institutions, says expanding economic opportunities for MSMEs is central to Egypt’s long-term growth. He says the transaction deepens the partnership with EFG Holding and helps local private businesses, especially outside major cities, gain resources to invest and innovate.

Karim Awad, Group Chief Executive Officer of EFG Holding, says the company continues to broaden its collaboration with the EBRD by expanding financing available through its NBFI platform. He says improved access to finance allows local businesses to realise more of their economic potential and create wider benefits across the economy.

The transaction also reinforces the EBRD’s stated commitment to supporting economies affected by the Middle East conflict by providing liquidity to the private sector. EFG Holding is a longstanding EBRD partner, and the bank says it has previously extended facilities to subsidiaries including Bank NXT, Tanmeyah and Valu.

Egypt is a founding member of the EBRD, and the bank has invested almost 15.4 billion euros in the country through 234 projects since starting operations there in 2012. EFG Holding is listed on the Egyptian Stock Exchange and the London Stock Exchange.

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