The SANAD Fund for MSME (SANAD) announced that it has provided a top-up loan of USD 15 million to the Export Development Bank of Egypt (EBE). With this investment, the partners aim to channel much-needed financing to agricultural and small and medium-sized exporters as well as microfinance institutions (MFIs) in Egypt in response to the economic difficulties brought about by COVID-19.
One of the first banks in Egypt to target lending to small and medium enterprises (SMEs), EBE today plays a vital role in serving Egyptian exporters, many of whom are agricultural enterprises and SMEs. The bank also provides funding to microfinance institutions to serve local entrepreneurs. SANAD’s first investment into EBE in 2018 supported the bank in expanding its institutional capacity and lending infrastructure, in addition to providing technical assistance to the bank’s SME customers. The new top-up facility will continue the success of this partnership, especially in an environment where MFIs and SMEs are particularly affected by the economic effects of the COVID-19 outbreak.
SANAD Board Chairperson Dr. Daniela Beckmann said, “Agricultural exporters and SME exporters serve an important role in the Egyptian economy, providing income generation, business growth, and employment. Their continued ability to access the financing they need to support their operations is at the heart of SANAD’s mission to boost economic stability and jobs in the region. In addition, microfinance institutions are also in need of liquidity to continue serving local entrepreneurs. We are pleased to continue working together with a leader in MFI, SME, and agricultural finance in Egypt. EBE has been a valuable ally in directing SANAD funding to these important pillars of the economy, and we are glad of the opportunity to solidify the funding base for micro, small, and medium enterprises during a turbulent time.”
EBE Chairperson Mervat Soltan said: “We believe that SMEs and MFIs are fundamental parts of the economy in the developed and developing countries. Accordingly, EBE finances SMEs and MFIs in different economic sectors such as the industrial, agricultural, trade, and services sectors, specially the export activities of such sectors. The bank provides finance that suits the nature of each type of business activity, including financing working capital during various production stages, as well as financing the capital expenditure for expansions. The provided funding will boost the ability of the bank to finance the agricultural sector and small and medium sized exporters as well as microfinance institutions.”
