Egypt’s Banque MISR receives $160m from The African Development Bank to finance SMEs

Banque MISR, one of the largest banks in Egypt, has secured a loan of $160 million from the African Development Bank (AfDB) to help finance small and medium-sized enterprises (SMEs) in the country.

The loan consists of a $130 million credit facility from the bank and $30 million from Africa growing together fund (AGTF).

The AfDB says the money will provide Banque MISR with “long-term liquidity so it can extend loans to small and medium-sized enterprises and corporates operating in the industry, information and communications technology and agriculture/agribusiness”.

The loan forms part of the firm’s private sector development strategy. The bank hopes additional SME lending will help boost the country’s industrial production and economic growth while also creating more job opportunities.

The director of the African Development Bank’s financial sector development department, Stefan Nalletamby says the private sector “is a key driver of economic growth and job creation in Egypt”, and adds the loan will “facilitate access to stable financing” for businesses.

The AfDB claims to have “mobilized more than $6.7 billion in investments” in Egyptian businesses since it began operating in the country back in 1974.