Egyptian Minister of International Cooperation Rania Al-Mashat announced that Saudi Arabia’s Grant Management Committee will provide EGP 270 million to three Egyptian banks to finance micro, small and medium enterprises (MSMEs).
The committee decided that Banque Misr would benefit from its financing and receive EGP 70 million to finance the machinery and equipment of the factories. This includes means of transport for the activity, medical equipment and devices for laboratories and hospitals.
Meanwhile, the Industrial Development Bank (IDB) will receive EGP 100 million to fund two clean energy programs and purchase new and used machinery and equipment. At the same time, the Bank of Cairo will receive an amount of EGP 100 million to finance micro-enterprises.
The funding comes at the end of the three-day committee meetings at the Egyptian Ministry of International Cooperation.
Minister Al-Mashat welcomed the return visit of committee members to Cairo after the novel coronavirus (COVID-19) pandemic, and expressed satisfaction with the continued work of the committee during the pandemic.
This was done through visual communication, to ensure the continued achievement of its development goals by supporting MSMEs.
She pointed out that the committee’s decision to provide the funds as part of the grant’s vision, which is to strengthen concessional financing mechanisms to support MSMEs and create employment opportunities.
This is in addition to the diversity of sectors that each of the mentioned banks will target, which will benefit approximately 7,000 clients in various economic activities.
Saudi Arabia has provided a grant of $ 200 million, with the aim of supporting the state’s efforts to bridge the gap between financial institutions and MSMEs. It is also about facilitating their access to finance through intermediaries, given the paramount importance of these projects for the Egyptian economy, as it is a potential force that supports economic growth.
Minister Al-Mashat stressed that the Ministry of International Cooperation is keen to harness partnerships with multilateral and bilateral development partners to harness the development potential of MSMEs.
It should be noted that the total funding provided by the Saudi Arabia Grants Management Committee to fund MSMEs since the start of its work amounts to around EGP 1.5 billion. This has helped finance 2,500 projects in 27 governorates, providing around 12,000 job opportunities.
The most important intermediary agencies through which grant funds are provided are the National Bank of Egypt (NBE) and the Micro, Small and Medium Enterprise Development Agency (MSMEDA).
This is in addition to beneficiaries of direct grant funds, including: EFG Hermes Corp-Solutions; Inmaa Leasing ,; Plus rental; ValU; the global leasing company; EU Finance; Agricultural Bank of Egypt (ABE); and Contact Leasing Corporation.