AAIB bank, SANAD team up to launch microfinance firm in Egypt

Egypt’s Arab African International Bank (AAIB) and SANAD Fund for MSMEs, are joining to launch a microfinancing company by next January, banking sources with knowledge said Monday.

AAIB and SANAD will raise an initial of 75 million Egyptian pounds ($4.2 million) for the new firm and are targeting 130 million pounds within a year, sources further told Amwal Al Ghad on the sidelines of an Euromoney conference in Cairo.

The AAIB will have a 70 percent stake in the new firm; while the remaining 30 percent will be for SANAD, part of the German state-run Kfw Development Bank, the sources added.