African Development Bank approves $22 million to expand leasing financing to corporates and SMEs in Egypt

The Board of Directors of the African Development Bank approved a $22 million Senior Loan to help Egypt’s Corporate Leasing Company (Corplease) expand its operations in the North African country.

The decision signaled confidence in a burgeoning local market and in the Egyptian economy as a whole.

The Bank will mobilize $7 million of the $22 million from the Africa Growing Together Fund (AGTF), a co-financing fund, established with the People’s Bank of China.

With the newly-approved Corplease loan, the African Development Bank adds to its existing initiatives to support financial institutions and deepen financial systems on the continent. The loan will contribute to supporting SMEs operating in Egypt, especially in priority sectors such as agribusiness and food industries, tourism, ICT, clean energy, health, transport and manufacturing.

“The loan will contribute to supporting SMEs operating in Egypt, especially in priority sectors such as agribusiness and food industries, tourism, ICT, clean energy, health, transport and manufacturing – all essential contributors to inclusive and sustainable growth,” said Malinne Blomberg, African Development Bank Country Manager in Egypt.

The intervention is in line with the Bank’s High 5 strategic priorities, specifically “Feed Africa”, “Industrialize Africa” and “Improve the Quality of Life for the people of Africa”. The Bank’s support will have multiplier effects on industries related to the real sector and support job creation in these value chains.

It also aligns with Egypt’s vision 2030 and will complement the government’s efforts to support the productive capacity of local corporates, creating an enabling private sector environment and sustainable development.

Original source: AfDB
Published on 29 January 2020