The European Bank for Reconstruction and Development (EBRD) announced on Tuesday a new $5m loan in local currency to Tanmeyah Micro Enterprise Services (TMES) to increase access to finance for women-led micro, small, and medium enterprises (MSME) under the bank’s Women in Business (WiB) programme.
The bank is increasing direct lending to women-led MSME which remain an underserved segment in Egypt, statement of the bank said.
The loan will be indexed to Cairo Overnight Interbank Average (CONIA), the new Egyptian risk-free rate recently developed by the Egyptian Money Market Contact Group, which brings together representatives of the Central Bank on Egypt (CBE), commercial banks, and the EBRD.
The WiB loan will help Tanmeyah introduce new financial products, modified lending practices and business models that are more inclusive and gender-responsive. Tanmeyah will also implement a digital transformation strategy.
Supported by funds from the European Union Initiative for Financial Inclusion, Tanmeyah will benefit from internal capacity-building and skills development to more accurately understand and serve the financial needs of women-led MSMEs.
In addition, capacity-building and advisory services will be delivered directly to women-led MSME under the programme to support women entrepreneurs’ know-how, in conjunction with EBRD Advice for Small Businesses.
Additionally, EBRD’s new announcement coincides with the First Vice President Jurgen Rigterink current visit to Egypt from 4 to 6 November for meetings with senior government officials and business representatives.
Rigterink will also open an American Chamber of Commerce event on “Doing Well by Doing Good: Investing for Impact in Egypt” on Wednesday morning, and will sign new projects for Egypt over his visit.
Egypt is a founding member of the EBRD. Since the start of its operations in the country in 2012, the Bank has invested over €5bn in 99 projects in the country. In 2018, Egypt was the EBRD’s largest economy where the Bank invests, in terms of new commitments.