NBE Secures $100 million EBRD loan to boost Egypt’s MSMEs

The National Bank of Egypt has secured a 100 million-dollar loan from the European Bank for Reconstruction and Development to boost lending to micro, small and medium-sized enterprises.

The National Bank of Egypt has secured a financing facility worth 100 million dollars from the European Bank for Reconstruction and Development, a move designed to expand lending to local micro, small and medium-sized enterprises. The Ministry of Planning confirmed the agreement, noting that the funds will be directed towards MSMEs with particular emphasis on youth-led and women-led businesses.

The signing took place in Cairo during the three-day visit of Greg Guyett, the EBRD’s first vice president, who joined Mohamed El-Etreby, chief executive of the National Bank of Egypt, in formalising the arrangement. At the ceremony, Minister of Planning Rania Al-Mashat remarked, “The partnership with the EBRD supports government efforts to strengthen the private sector and encourage investment by providing affordable financing.” Guyett described the financing as “an important milestone” in the EBRD’s long-term engagement in Egypt, adding, “I am confident this partnership will enable the next generation of entrepreneurs to reach their potential and help build a more dynamic and sustainable economy.”

Since extending its operations to the southern and eastern Mediterranean in 2012, the EBRD has invested more than 13.8 billion euros in 209 projects in Egypt, with nearly 80 per cent of these directed towards the private sector. This latest agreement underscores the continuing role of international financial institutions in supporting Egypt’s economic transformation.

Egypt’s MSME landscape
The legal landscape for MSMEs in Egypt has undergone significant change in recent years. Prior to 2020, government policies towards small businesses were characterised by overlapping mandates across different institutions. The approval of Law No. 152/2020 on the Development of MSMEs marked a turning point, introducing a more coherent framework. Implementation of the act was delegated to the Micro, Small & Medium Enterprise Development Agency, which has become the central authority for advancing the sector. This legislation reflects Egypt’s ambition to improve the investment climate in line with the objectives of Egypt Vision 2030, particularly the government’s strategy for financial inclusion.

The framework provides a range of incentives to encourage formalisation and growth. Newly registered MSMEs benefit from low taxes, simplified tax returns and temporary tax waivers. Businesses engaged in manufacturing and export-oriented activities are offered preferential access to industrial areas and reduced lease payments. Financial inclusion is also promoted through alignment with the Central Bank of Egypt’s MSME Initiative, which obliges banks to extend loans to small enterprises at preferential rates. These measures are intended to foster entrepreneurship, enhance productivity and ensure greater inclusiveness within the private sector.

Nevertheless, challenges remain in the implementation of the law. Access to credit continues to be constrained by risk-averse lending practices and the lack of collateral among small businesses. Many entrepreneurs in the informal sector remain reluctant to register their activities, wary of government oversight. Regulatory overlaps between local authorities and MSMEDA have also caused delays in project approvals. Furthermore, awareness and capacity-building initiatives have not yet reached sufficient scale, particularly in rural and non-urban areas.

Addressing these gaps will require sustained collaboration between institutions and stakeholders. The recent financing agreement between the National Bank of Egypt and the EBRD represents a step forward in strengthening the ecosystem for MSMEs, but the long-term success of such initiatives will depend on overcoming structural barriers and ensuring that the benefits of reform reach entrepreneurs across the country.