The European Bank for Reconstruction and Development (EBRD) is providing a US$ 50 million (€43.7 million) financing package to National Bank of Kuwait Egypt (NBK Egypt) to support micro, small and medium-sized enterprises (MSMEs) in Egypt. The package includes a US$ 20 million (€17.5 million) loan under the EBRD’s Youth in Business programme, which is being supported with funds provided by the European Union (EU).

The Youth in Business loan is to be lent on to local private MSMEs that are led or majority owned by entrepreneurs under the age of 35, with a focus on rural areas and women-led entrepreneurship. Sub-loans will be complemented by EU-funded cash incentives of up to 10 per cent of loan amounts under the European Union’s Egypt Micro and Small Financial Inclusion programme, a first-loss risk cover funded by the EBRD and a capacity building for young entrepreneurs. A technical cooperation package is also being provided to assist NBK Egypt with programme implementation, marketing and general awareness raising, funded by the EBRD’s Southern and Eastern Mediterranean Multi-Donor Account.

This is the second time that the EBRD and NBK Egypt have worked together on a project supporting MSMEs and youth-led businesses, following a successful financing package in 2022, which was also complemented by EU financial support.

The EBRD’s Youth in Business programme enables young entrepreneurs to access critically needed financing and technical assistance to grow their small businesses via dedicated credit lines lent on by banks and microfinance institutions. The credit lines are complemented by technical assistance, helping partner banks to strengthen their lending capacity. The blended financial support from the EU allows access to finance by the intended borrowers at cheaper, more affordable rates.

Commenting on the project, the EBRD’s Managing Director for Financial Institutions, Francis Malige, said: “This new financing package is another important milestone in our longstanding partnership with NBK Egypt, helping to support local SMEs, the backbone of the Egyptian economy. Our Youth in Business credit line, with EU blending, will also support the Egyptian economy by providing affordable financing to youth-led businesses, which remain highly underserved. With thanks to the European Union, this package underscores our shared commitment to advancing a more inclusive private sector in the region.”