Wed, 20 Oct 2021 - 02:55 GMT
Wed, 20 Oct 2021 - 02:55 GMT
CAIRO – 20 October 2021: The European Bank for Reconstruction and Development (EBRD) provided a loan of LE 80 million to Reefy Microfinance Enterprise Services, Egypt’s first licensed microfinance institution.
EBRD noted that the loan will be provided under the EBRD’s Women in Business program. It will be used to support privately owned micro, small and medium-sized enterprises (MSMEs) that are owned by women, especially in governorates other than Greater Cairo and Alexandria.
“Supported by funds from the European Union Initiative for Financial Inclusion and in conjunction with the EBRD’s Advice for Small Businesses unit, the program will also offer capacity-building and advisory services directly to women-led MSMEs to boost women entrepreneurs’ know-how,” EBRD added.
According to the Bank, the loan will help Reefy introduce new financial products, modified lending practices and business models that are more inclusive and gender-responsive.
The EBRD’s Women in Business program promotes the participation of women in the economy and provides financial, advisory, training and mentoring support to female entrepreneurs. It focuses in particular on women-led small businesses with fewer than 250 employees and less than €50 million in annual turnover. The programme covers most sectors and industries.
The loan to Reefy marks the EBRD’s second engagement in the microfinance sector of Egypt, where Reefy is one of the leading players, with a fast-growing balance sheet and an expanding branch network. Access to finance is a key requirement for the growth of the private sector, the engine of Egypt’s economy.
“We are very happy to partner with the EU and Reefy to empower women entrepreneurs by helping them gain access to finance and know-how. We believe that equality of opportunity for women entrepreneurs is a priority from a gender and an economic perspective as it helps create jobs for a big segment of Egyptian society and drives economic growth,” Alain Pilloux, EBRD Vice President, Banking, said.
“The Reefy microfinance loan is another important step in the joint support provided by the European Union and the EBRD. It reflects our strong commitment to supporting women’s economic empowerment in Egypt,” said Ambassador Christian Berger, Head of the EU Delegation to Egypt.
For his part, Ahmed Labib, CEO of Reefy, commented that they are eager to be joining forces with the EBRD, as part of Reefy’s strategy to further diversify our funding sources and increase our corporate social responsibility. Following our robust network expansion plan in 2020, it is essential to gear up to cater for the business activity we anticipate, in parallel with the market’s recovery. Approximately 42 per cent of our outstanding portfolio is to fund women-led businesses, emphasising their role in boosting the economy’s growth.
Egypt is a founding member of the EBRD. Since the start of the Bank’s operations there in 2012, the EBRD has invested almost €8 billion in 136 projects in the country. The EBRD’s areas of investment include the financial sector, agribusiness, manufacturing and services, as well as infrastructure projects such as power, municipal water and wastewater services, and contributions to the upgrade of transport services.