• EBRD grants Fawry MSME an EGP 250M (USD 5.2m) loan under Egypt YiB to finance youth-led enterprises.
• The programme targets youth-owned MSMEs in remote regions, promoting inclusive growth and expanding access to finance across Egypt.
• EU-backed technical support and risk cover will strengthen Fawry MSME’s capacity and resilience amid Egypt’s macroeconomic challenges.

Fawry

 The European Bank for Reconstruction and Development  (EBRD) provided a senior unsecured loan in local currency of up to EGP 250 million ( USD 5.2M) for Fawry MSME.

Launched in 2018, Fawry MSME provides financial services to micro small and medium enterprises through smart digital solutions.

The loan is under the Egypt Youth in Business (“Egypt YiB”) programme. It seeks to on-lend to private youth-led and/or owned MSMEs in Egypt with a particular focus on remote regions.  Additionally it will also focus on regional outreach and attraction of new youth MSME clients. 

Through the programme, the project is expected to contribute to the Inclusive and Competitive transition impact qualities. Under the Inclusive quality,, Fawry MSME will adopt new lending practices and business models targeted at young people. Thus, helping the microfinance institution expand its lending in favour of this underserved segment. Meanwhile, under the Competitive quality, the project will contribute to the expansion of Fawry MSME’s portfolio of loans to youth-led and/or owned MSMEs. This is by reaching new clients, while maintaining a minimum regional share and sound asset quality.

The loan aims at opening up economic opportunities for young people and promoting their access to finance. This is through supporting the development of youth-led and/or owned enterprises and the non-bank financial services industry in Egypt. 

The loan will also be accompanied by a comprehensive package of technical cooperation, first-loss risk cover, and incentives. This will be funded by the EU Neigbourhood Investment Facility, the EBRD’s Shareholder Special Fund, and the EU – Egypt Micro and Small Inclusion Programme. It also aims to strengthen the capabilities of Fawry MSME and the sub-borrowers while alleviating the impact of macroeconomic turbulence on end-beneficiaries.