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Signature(s)

Amount
€ 500,000,000
Countries
Sector(s)
Egypt : € 500,000,000
Credit lines : € 500,000,000
Signature date(s)
23/12/2022 : € 250,000,000
29/12/2022 : € 250,000,000
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Summary sheet

Release date
29 November 2022
Status
Reference
Signed | 23/12/2022
20220417
Project name
Promoter - financial intermediary
EGYPT INCLUSIVE GROWTH FACILITY
BANQUE MISR SAE,NATIONAL BANK OF EGYPT
Proposed EIB finance (Approximate amount)
Total cost (Approximate amount)
EUR 500 million
not applicable
Location
Sector(s)
Description
Objectives

Loan for small and medium-sited enterprises (SME) and mid-caps to strengthen the support to Egyptian businesses, including financially underserved and excluded businesses.

The operation aims to strengthen the support to financially underserved and excluded businesses in Egypt.

Additionality and Impact

The operation aims to finance eligible small and medium sized investments undertaken by SMEs and Mid-Caps in Egypt, thereby contributing to economic resilience, employment generating activities and alleviating the economic burden of the Covid-19 crisis in the country. SMEs make up the vast majority of firms in Egypt and, as such, play a vital role in creating and safeguarding employment, especially in rural communities, among young people and women. The proposed operation is expected to enhance access to finance to SMEs and Mid-Caps, in that it will allow the selected financial intermediaries to make available funding at improved terms and conditions. Particular attention will be given to access to finance in rural areas of the country. It is expected that 50% of allocations under this operation will come from enterprises located in less developed areas of Egypt, outside the main cities of Cairo and Alexandria. The long term EIB funding, improvement in lending/reporting/monitoring practices and standards together with TA would allow to further strengthen the capacity of the Borrowers to sustainably expand their MSME loan portfolio in rural and underserved areas of the country with a particular focus on digital outreach.

The project is in line with EU-Egypt cooperation priorities as documented in the Joint Communication on the renewed partnership with the Southern Neighbourhood. The Joint Communication emphasizes the need for MSE support and recognises that the MSE funding gap is a real constraint to development. The project is expected to contribute to SDG 1 (no poverty), SDG 5 (gender equality) and SDG 8 (decent work and economic growth).

Environmental aspects
Procurement

The Bank will require the intermediary institution to take all the requisite measures to ensure that the procedures including procurement procedures carried out by the final beneficiaries for the sub-projects receiving Bank financing will comply with national legislation and the ElB's Environmental and Social Standards as well as international treaties and conventions signed and ratified by or otherwise applicable and binding in the country.

The Bank will require the intermediary institution to take all requisite measures to ensure that any procurement procedures carried out by final beneficiaries for the sub-projects that the Bank finances are in accordance with the Bank's Guide to Procurement.

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Disclaimer

Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).

General enquiries and comments

The EIB is committed to open communication and encourages constructive stakeholder input regarding its activities.
Enquiries and comments concerning the EIB’s involvement in a project or the financing facilities, activities, organisation and objectives of the EIB, can be sent to the EIB Infodesk.
Alternatively, the EIB can be contacted through its external offices.
Queries regarding details of a specific project, in particular when it is under appraisal by the EIB, should preferably be addressed directly to project promoters.

Media enquiries

Media-related enquiries can be addressed to the EIB Press Office. Please also visit our Media information section.

Complaints mechanism

Any complaint regarding alleged maladministration can be lodged via the EIB Complaints Mechanism. The European Ombudsman acts as an independent external accountability mechanism of the EIB.

Zero tolerance against fraud and corruption

The EIB has a zero tolerance policy on fraud or corruption. To report allegations of fraud and corruption relating to EIB-financed projects, please contact the Fraud and Investigation division. All complaints will be treated as strictly confidential and handled in line with the EIB investigation procedures and the Anti-Fraud Policy.

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