EBRD extends $5 m to Egypt in support of women-led MSMEs

05 / 11 / 2019

By Marwa Nassar - -

The European Bank for Reconstruction and Development (EBRD) will extend a five-billion-dollar loan to Egypt in support of women-led micro, small and medium-sized enterprises (MSMEs).

This is EBRD’s first engagement in the Egyptian microfinance segment.

Under the Bank’s Women in Business (WiB) program in Egypt, the loan in local currency will go to Tanmeyah Microenterprise Services to increase access to finance for women-led MSMEs which remain an underserved segment in Egypt.

The loan will be indexed to CONIA (Cairo Overnight Interbank Average), the new Egyptian risk-free rate recently developed by the Egyptian Money Market Contact Group, which brings together representatives of the central bank, commercial banks and the EBRD.

The WiB loan will help Tanmeyah to introduce new financial products, modified lending practices and business models that are more inclusive and gender-responsive. Tanmeyah will also implement a digital transformation strategy.

Supported by funds from the European Union Initiative for Financial Inclusion, Tanmeyah will benefit from internal capacity-building and skills development to more accurately understand and serve the financial needs of women-led MSMEs. In addition, capacity-building and advisory services will be delivered directly to women-led MSMEs under the program to support women entrepreneurs’ know-how, in conjunction with EBRD Advice for Small Businesses.

Tanmeyah is the largest of nine private Egyptian microfinance institutions.

Egypt is a founding member of the EBRD. Since the start of its operations in the country in 2012, the Bank has invested over €5 billion in 99 projects in the country. In 2018, Egypt was the EBRD’s largest economy where the Bank invests, in terms of new commitments.