EBRD, In Partnership With The EU And Fawry, Launches US$4.7 Million Financing Program For Egypt's Young Entepreneurs
The funding will be deployed through the EBRD’s Youth in Business credit line, targeting micro, small, and medium-sized enterprises, particularly in rural and underserved areas, that are owned or led by entrepreneurs under the age of 35.
The European Bank for Reconstruction and Development (EBRD), in partnership with the European Union (EU) and Fawry MSME Finance, has launched a new program aimed at expanding access to finance for young entrepreneurs in Egypt.
Established in 2018 as a subsidiary of Fawry, the Egypt-based fintech platform, Fawry MSME Finance is a digital microfinance company that supports micro and small entrepreneurs across the country.
Under the new initiative, the EBRD will provide up to EGP250 million (US$4.7 million) to help youth-led enterprises bridge financing gaps. The funding will be deployed through the EBRD’s Youth in Business credit line, targeting micro, small, and medium-sized enterprises (MSMEs), particularly in rural and underserved areas, that are owned or led by entrepreneurs under the age of 35. The facility is backed by a first-loss risk cover of up to 10 percent, in addition to EU-funded investment grants for eligible borrowers of up to 10 percent of the loan amount.
Backed by the EU, the EBRD’s Youth in Business program supports young entrepreneurs through dedicated financing and technical assistance delivered via partner banks and microfinance institutions. The initiative also includes blended finance mechanisms aimed at lowering borrowing costs and improving access to credit for eligible businesses. The EBRD Advice for Small Businesses Program, financed through the EBRD’s Small Business Impact Fund (SBIF), will provide participating youth-led MSMEs with non-financial advisory support.
Commenting on the initiative, Mark Davis, Managing Director for the Southern and Eastern Mediterranean region at EBRD, said, “This is our first partnership with Fawry, a digital leader in Egypt, and marks the start of a new cooperation to support local micro, small and medium-sized enterprises led or owned by young entrepreneurs, an essential step in helping the Egyptian economy to absorb the growing number of financially underserved young people entering the labor market and to expand their economic opportunities.”
Ashraf Sabry, founder and CEO of Fawry, added, “We are proud to launch this collaboration with the EBRD through this financing agreement, which will allow us to broaden our range of financial services for young Egyptian micro-borrowers. We extend our gratitude to the EBRD and the European Union for their support and meaningful contribution.”
The initiative also features a technical cooperation package funded by the EBRD to help Fawry MSME Finance implement the program, enhance its institutional capabilities, and deliver training on gender-responsive lending, as well as provide customized advisory to support its digital transformation.
Pictured in the lead image is a scene from the ceremony announcing the new program. Image courtesy EBRD.
