EBRD, Green Growth and Sanad funds all have money for Egypt + more competition in consumer finance
The European Bank for Reconstruction and Development (EBRD) has put pen to paper on its financing of the Alexandria metro project, which will see it provide the Transport Ministry with EUR 250 mn to transform the Abu Qir railway into an electrified metro line. Al Borsa reports that the EBRD and the ministry signed the agreement yesterday during the launch event for the lender’s new 2022-2027 Egypt strategy, which will continue to see it support economic growth and its transition towards a greener economy.
That’s not all: The EBRD will assess Egypt’s potential to build a hydrogen industry, as well as support skills in the local tourism industry, after signing separate MOUs with the oil and tourism ministries, the newspaper reported.
Banque Misr has received USD 75 mn from the Green for Growth Fund (GGF) and Sanad Fund for on-lending to green projects as well as micro-, small- and medium-sized enterprises, according to a press release (pdf). Some USD 40 mn of the funding is from GGF and USD 35 mn from Sanad. Both funds are backed by German development bank KfW, among others.
This is the GGF’s second green lending agreement in Egypt in a month: State-owned Banque du Caire last month snagged USD 30 mn from the GGF for on-lending to green projects. The loan marked the GGF’s first tier-two investment in Egypt, after it received a license from the Central Bank of Egypt (CBE) in January to provide funds to local banks for on-lending.
*** MORE COMPETITION IN CONSUMER FINANCE: The National Investment Bank has established an EGP 100 mn consumer financing arm — the Egyptian Company for Consumer Finance Services — for its subsidiary Ayady Investment and Development, which plans to release its first product in 3Q2022, Ayady announced in a press release (pdf).
MEANWHILE: EFG Hermes’ fintech platform valU is targeting 750k customers and EGP 5 bn in sales this year, while Egypt Post is set to launch e-payment services via its mobile app.