Arab Finance: The European Bank for Reconstruction and Development (EBRD) has extended a EGP 250 million financing facility to Fawry MSME Finance, a wholly owned subsidiary of Fawry for Banking Technology and Electronic Payment, to expand lending to youth-led micro, small, and medium-sized enterprises (MSMEs) in Egypt, as per a disclosure.
The funding, provided under the EBRD’s Youth in Business program, will be directed to privately owned MSMEs led or majority-owned by entrepreneurs under the age of 35, with a focus on underserved and rural areas.
The program includes a first-loss risk cover of up to 10%, alongside European Union (EU)-funded investment grants offering cash incentives of up to 10% of the loan value for eligible borrowers.
The partnership also includes a technical cooperation package funded by the EBRD to support implementation, strengthen operational capacity, and support gender-responsive lending practices. It will also provide advisory support related to Fawry MSME Finance’s digital transformation.
Additional non-financial support will be provided through the EBRD Advice for Small Businesses program, supported by the Small Business Impact Fund, to assist participating enterprises in improving growth and sustainability.
