Banks in Egypt pump LE 85B to finance SMEs

CAIRO – 27 June 2018: The volume of financing provided by the banks operating in the domestic market to the small and medium enterprises (SME) sector amounted to LE 85 billion, as part of the initiative of the Central Bank of Egypt to promote this vital sector, according to Deputy Governor of the Central Bank of Egypt Lubna Hilal.

Hilal expected the pumping to reach LE 200 billion before January 2020.

This came on the sidelines of her participation in the celebration of the graduation of the first batch of entrepreneurs, founded by Egy Bank.

“A fund amounting to LE 200 billion is expected to be pumped within a year to finance innovation,” Hilal announced.

She clarified that the fund aims to finance projects in the field of financial technology and other sectors currently under study.

The Central Bank of Egypt (CBE) is studying the western experiences in this area, as these funds will be pumped by the Central Bank, she noted.

Planning Minister Hala el-Saeed said on June 8, that Egypt plans to launch its first sovereign fund by the end of the year and that she will start a promotional tour in the first half of next year to stimulate private investment.

The Egypt Fund will have an authorized capital of LE 200 billion ($11.2 billion), and will start with paid-in capital of LE 5 billion, 20 percent of which will be injected by the government when it is set up.

Meanwhile, the Egyptian Cabinet approved last April a draft law to establish a sovereign wealth fund to manage state assets with a capital of LE 200 billion, and an issued and paid capital of LE 5 billion.

Planning Minister Saeed said the bill gives the fund the authority to establish sub-funds and contribute in similar Arab funds.

The fund will make use of the state’s unused assets, which amount to 3,000.