EIB, Egypt’s NBE sign EUR 800 m deal for backing SMEs

08 / 09 / 2020

By Marwa Nassar - -

Minister of International Cooperation, Dr. Rania el Mashaat, announced that the European Investment Bank signed a EUR 800 million Financing Agreement with the National Bank of Egypt (NBE) to fund small and medium enterprises in order to meet their financing needs and building their resilience amid the COVID-19 pandemic.

In a statement, the minister added that the agreement between the two banks comes within a larger agreement approved by the European Investment Bank worth 1.9 billion euros, where 1.1 billion euros will be provided for the transport sector and 800 million euros for small and medium enterprises.

Mashaat emphasized the importance of the partnership with the European Investment Bank in investing in Egypt’s future and pushing forward with the 2030 National Agenda and the achievement of the United Nations Sustainable Development Goals (SDGs), particularly Goal 8 for Decent Work through supporting technological upgrading, access to financial services, innovation, and encouraging the formalization and growth of micro-, small- and medium-sized enterprises.

Since the start of this year, Ministry of International Cooperation signed several agreements with the EIB, including an agreement worth 120 million euros to develop the Alexandria wastewater treatment plant.

Mashaat explained that this comes in line with the ministry’s strategy to strengthen Egypt’s economic diplomacy. Collaboration with development partners maps ODA financing with the 17 UN SDGs and centers them around the global partnerships narrative with its 3 main pillars; people at the core, projects in action and purpose as the driver.

Last July, the minister held a virtual meeting with Flavia Palanza, Director of Operations for Neighboring Countries at the European Investment Bank, to discuss future cooperation between Egypt and the bank, particularly with in regard to financing transport project to provide access to safe, affordable, accessible and sustainable transport systems for all.

The meeting also discussed cooperation in the agricultural sector, as well as the bank’s willingness to cooperate in the field of health to help Egypt overcome the COVID-19 pandemic and building the resilience of small and medium enterprises.