The SME Development Authority expects to receive EUR 120 mn in loans and grants before year-end that will be used to develop infrastructure in five governorates and combat illegal migration in 11 others, the authority’s head of human and social development sector Medhat Massoud told Al Mal. The authority is currently in talks with the European Union, the European Investment Bank and the French Development Agency for the funding, Massoud said. The FDA loan is earmarked for developing four inner-city areas in Cairo and Giza. We previously reported that the authority is in talks with the EU and the EIB for a combined EUR 87 mn in loans and with the World Bank for a USD 200 mn loan to finance projects. Massoud said that Egypt is approaching signing a final agreement for the WB loan, which would be focused on youth- and women-led SMEs.

Illegal migration: Massoud did not get into how the European loans and grants would be used, but you can expect the argument that financing SMEs in struggling areas will create jobs and keep at home people who would otherwise illegally migrate abroad. Germany and Austria have been pushing for a pact with North African countries, including Egypt, to help it curb the increased inflow of illegal migrants to it in exchange for economic support. The pact could see Egypt’s navy patrol the Mediterranean.