RIYADH: Egypt’s efforts to bolster its private sector and empower small and medium enterprises received $533.7 million in support from the European Bank for Reconstruction and Development as it undertakes massive privatization and restructuring measures for the public sector.
Under the umbrella of Egypt 2022-2027 strategy, launched by the Minister of International Cooperation Rania Al-Mashat in March last year, the EBRD approved development financing worth $400 million for the National Bank of Egypt to support SMEs, focusing on regional companies led or owned by young entrepreneurs.
The bank also approved funding worth $100 million for Banque Misr to improve financing for SMEs in a way that promotes inclusive and sustainable growth. In addition, it aims to increase funding to SMEs in areas with limited access to financial services.
The EBRD also approved another funding for the Mediterrania Capital IV Fund at a value of €30.2 million ($33.7 million).
Last year, the EBRD provided €737 million in private sector financing to boost SMEs, while the bank’s investments in Egypt totaled €1.3 billion in 2022.
Boosting Egyptian-Chinese partnerships
According to the Ministry of International Cooperation, Al-Mashat signed an agreement in Beijing with the Asian Infrastructure Investment Bank to fund the Abu Qir metro project in Alexandria for €250 million, contributing to the development of the railway line.
Abu Qir will become an electric metro system that helps to reduce traffic congestion in Alexandria, supports the transition to environmentally friendly transportation and reduces greenhouse gas emissions.
The project is jointly financed by the EBRD, the European Investment Bank, the French Development Agency and AIIB, covering a total cost of €1.5 billion.
In addition, the minister also signed different memorandums of understanding during her participation in the International Action Forum to strengthen Egyptian-Chinese partnerships and advance development efforts in the country.
Furthermore, she signed an MoU with the China International Development Cooperation Agency on the Global Development Initiative, launched by the Chinese president in 2021.
Al-Mashat also reviewed the Sharm El-Sheikh Guide to Fair Financing, which Egypt launched during its presidency of the UN climate conference last year, where they discussed efforts to improve the exchange of expertise and knowledge.
