EBRD Provides $40 Million Loan to EFG Holding for Egyptian MSME Financing

The European Bank for Reconstruction and Development (EBRD) has provided a $40 million (€35 million) loan to EFG Holding, an Egyptian financial services group, to increase access to finance for micro, small and medium-sized enterprises (MSMEs) within Egypt. The funding is specifically targeted towards businesses located in rural areas and outside the country's main urban centres, where access to capital is often more limited.

This transaction marks the first time the EBRD is channeling financing directly to EFG Holding. The funds will be distributed through eligible subsidiaries of EFG Finance, the group's non-bank financial institution platform, to MSMEs facing greater difficulties in obtaining conventional financing. The EBRD stated that the initiative aims to address financing gaps, stimulate private sector activity, and bolster economic resilience.

The loan forms part of the EBRD's wider commitment to supporting economies affected by the conflict in the Middle East by providing liquidity to private sector businesses. The agreement was signed during EFG Hermes' 12th Annual Investor London Conference.

Since commencing operations in Egypt in 2012, the EBRD has invested nearly €15.4 billion across 234 projects. EFG Holding has a prior working relationship with the EBRD, having previously received financing facilities for subsidiaries including Bank NXT, Tanmeyah, and Valu.