EBRD, EU provides $50 million to NBK Egypt for Egyptian MSMEs
The European Bank for Reconstruction and Development (EBRD) announced on Thursday a financial package of up to $50 million to the National Bank of Kuwait Egypt (NBK Egypt) designed for micro, small and medium-sized enterprises (MSMEs) in Egypt.
According to a statement by the EBRD, the package comprises a loan of $40 million that NBK Egypt will on-lend to local private MSMEs. It also includes a $10 million loan under the EBRD Youth in Business programme, co-financed with EU funds under the Egypt Micro and Small Financial Inclusion programme, to be on-lent by NBK Egypt to local private MSMEs that are led or majority owned by entrepreneurs under the age of 35.
The EBRD’s Youth in Business loan component will be complemented by up to $1 million in the form of first-loss risk cover provided by the EU under its Egypt Micro and Small Financial Inclusion programme.
A comprehensive technical cooperation package, focusing on staff training and development of skills, will accompany both loans. It will assist NBK Egypt with programme implementation, marketing and general awareness raising, in-person and digital training, mentoring and product development, as well as advisory services, with the aim of boosting entrepreneurial skills and mindset.
The EBRD will also support NBK Egypt in improving gender equality practices and in better understanding the role of women clients and the obstacles they face.
As part of the Youth in Business loan, supported by EU and other donor funds, NBK Egypt employees will attend gender-responsive training, where they will establish and track the gender breakdown of the sub-loan portfolio, and participate in policy dialogue.
The EBRD’s Youth in Business programme enables young entrepreneurs to access critically needed financing and technical assistance to grow their small businesses through dedicated credit lines on-lent by banks and microfinance institutions. The credit lines are complemented by technical assistance for partner banks to boost their lending capacity.
The loans were signed as part of an EBRD youth forum titled “Boosting Next Generation Businesses”, which provided an update on the activities of the Youth in Business programme. The event witnessed the attendance of several banking and non-banking financial institutions, in addition to representatives from the Central Bank of Egypt (CBE).
