The European Bank for Reconstruction and Development (EBRD) has announced a financing package worth US$ 50 million (€43.7 million) for the National Bank of Kuwait Egypt (NBK Egypt). This new support aims to strengthen the growth of micro, small and medium-sized enterprises (MSMEs) across Egypt, which play an essential role in the country’s economic development. A central part of this package is a US$ 20 million (€17.5 million) loan provided through the EBRD’s Youth in Business programme. The programme is backed by funding from the European Union (EU) and is designed to help young entrepreneurs gain better access to finance.
The loan will be directed towards private MSMEs that are managed or majority-owned by individuals under the age of 35, with particular attention given to rural areas and businesses led by women. The financing comes with several additional benefits to make it more accessible and supportive for young business owners. These include EU-funded cash incentives of up to 10 percent of the loan amount under the EU’s Egypt Micro and Small Financial Inclusion programme. A first-loss risk cover funded by the EBRD will help reduce lending risks, while capacity-building initiatives will support young entrepreneurs in developing stronger business and financial skills.
NBK Egypt will also receive technical assistance to help carry out the programme effectively, including support for implementation, marketing and awareness campaigns. This assistance is funded through the EBRD’s Southern and Eastern Mediterranean Multi-Donor Account. This marks the second time the EBRD and NBK Egypt have partnered to support MSMEs and youth-led enterprises. Their previous cooperation in 2022 also involved EU financial support and proved successful in expanding access to finance for smaller businesses.
The EBRD’s Youth in Business programme is specifically designed to provide young entrepreneurs with the financial tools and advisory support they need to grow. Through dedicated credit lines channelled via banks and microfinance institutions, the programme helps improve lending capacity while offering more affordable financing options made possible by EU-blended support.
Francis Malige, the EBRD’s Managing Director for Financial Institutions, said that this new package is another important step in the long-standing cooperation with NBK Egypt and will help support local SMEs, which are the backbone of Egypt’s economy. He noted that the Youth in Business credit line will offer affordable financing for youth-led businesses, which continue to be underserved, and emphasised the shared commitment with the EU to promoting a more inclusive private sector.
Yasser El Tayeb, NBK Egypt’s Vice Chairman, CEO and Managing Director, stated that the bank is pleased to build on the achievements of the 2022 partnership with the EBRD. He explained that the new financing will allow NBK Egypt to expand its solutions for local and youth-led businesses and contribute to wider economic activity, aligning with the development priorities of the National Bank of Kuwait. He also expressed appreciation to both the EBRD and the EU for their continued support.
NBK Egypt, a subsidiary of the NBK Group, has been a partner of the EBRD since 2015 when it first received an SME loan and a trade finance facility. The agreement was signed during the EBRD’s third “Pathways to Paris” conference, a major event that brings together senior representatives from financial institutions, regulators, investors and other key players. The conference focuses on supporting the transition to a low-carbon and climate-resilient future across the regions where the EBRD operates. Egypt is a founding member of the EBRD and has received more than €14.3 billion in investments across 222 projects since the Bank began its operations in the country in 2012.
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