Egypt: African Development Bank Provides $160M Loan to Banque Misr to Strengthen Private Sector Participation in Egypt’s Economy | African Development Bank

The board of directors of the African Development Bank has approved a $160 million loan to Banque Misr to finance Egyptian companies investing in key sectors of the economy.

The loan consists of a $130 million line of credit from the bank and an additional $30 million in funds from the Africa Growing Together Fund (AGTF).

The financing will provide Banque Misr with long-term liquidity so that it can provide loans to SMEs and companies active in manufacturing, information and communications technology and agriculture/agribusiness.

“Our ambition is to unleash the potential of the Egyptian private sector to strengthen its contribution to Egypt’s economy,” said Mohamed El Azizi, Director General of the African Development Bank for North Africa. “Our goal is to open up new opportunities for them to invest and grow to contribute to food security and strengthen the dynamics of industrial transformation and modernization.”

The loan will contribute to increasing the country’s industrial production, strengthening economic competitiveness, generating tax revenues and creating job opportunities, especially for women and youth.

Stefan Nalletamby, director of the African Development Bank’s financial sector development department, said: “The private sector is an important driver of economic growth and job creation in Egypt. The loan to Banque Misr, with a term of 10 years, will facilitate access to stable financing for small, medium and large companies in key sectors of the economy.”

The loan is in line with the bank’s private sector development strategy (2021-2025), in particular the objective of improving access to finance and deepening financial systems.

Egypt is one of the founding members of the African Development Bank Group. Since beginning operations in the country in 1974, the Bank has mobilized more than $6.7 billion in investment in the energy, water and sanitation, transportation, human development, agriculture and financial sectors.