EBRD Funds DeFacto Egypt Expansion With Loan To Build 20 New Stores And Support Sustainable Development

The European Bank for Reconstruction and Development (EBRD) is providing a loan to DeFacto Egypt, a subsidiary of the Turkish retailer DeFacto Perakende Ticaret, to support the company’s expansion in the Egyptian market. The financing will help DeFacto increase its retail presence by adding up to 20 new stores, equal to about 20,000 square metres of new retail space. The loan will also support the company’s digitalisation plans, enhance local production capabilities and provide additional working capital needed to grow and manage its operations.

DeFacto Perakende Ticaret, founded in 2005, has grown to become Türkiye’s second-largest apparel retailer. The company operates more than 500 stores worldwide and serves customers in 100 countries through both online and offline channels. Known for offering affordable fashion for men, women and children, DeFacto employs over 10,000 people and is active in several economies where the EBRD invests.

Beyond supporting the company’s expansion in Egypt, the EBRD’s investment aims to help address gender inequalities in the country’s wholesale and retail sector, where female participation remains low. As part of the project, DeFacto Egypt has committed to increasing the share of women in its workforce to 30 per cent within the next three years. The company will also establish an internship programme with a minimum participation rate of 35 per cent for women. This initiative will give young Egyptians opportunities to gain practical work experience, develop skills and receive mentorship, helping them build future careers in the retail industry.

Commenting on the investment, Mehmet Erdem Yasar, EBRD Deputy Head of Türkiye, explained that the Bank is pleased to support Turkish companies as they expand internationally. He noted that the project enhances the competitiveness of Türkiye’s private sector while bringing new capabilities and competition to Egypt’s retail market. He expressed confidence that DeFacto’s continued investment will strengthen the company and contribute to the development of Egypt’s retail sector.

Önder Şenol, President of Investments and Growth at DeFacto, described the EBRD’s support as an important step in the company’s expansion strategy in Egypt. He highlighted Egypt’s potential as both an important market and a regional hub. According to him, the financing will enable DeFacto to accelerate its store rollout, boost local production and advance digital transformation efforts.

He added that the company is committed not only to growth but also to creating long-term value through inclusive employment, talent development and responsible business practices. The EBRD remains one of Türkiye’s leading investors, having committed more than €23 billion across over 500 projects and trade finance limits since 2009, with a strong focus on supporting private sector development.