Bank’s new focus to expand financial services to Egypt’s local microentrepreneurs, SMEs, and NGOs

Luxembourg and Cairo, March 8, 2019 – The SANAD Fund for MSME (SANAD), an impact investment fund advised by Finance in Motion, and the United Bank of Egypt (UBEG), a fully owned subsidiary of the Central Bank of Egypt, have announced their cooperation to support micro, small, and medium enterprise (MSME) funding in Egypt. Through SANAD’s international expertise in MSME financing and UBEG’s nationwide branch network, the partners aim to improve access to financial services for this important yet underserved sector of the Egyptian economy.

To address the challenges of this fundamental transformation, the SANAD Technical Assistance Facility (TAF) is providing UBEG with technical support in the form of specialist consulting, strategy workshops, and business planning. The approach includes a comprehensive review of the bank’s operating environment and its existing microfunding activities, while leveraging UBEG’s in-house expertise and local knowledge. By April 2019, the project team aims to deliver a refined five-year business plan covering strategic goals; key customer segments and geographic areas; a strategy for sustained outreach and profitability; an operational road map; and immediate next steps.

SANAD Board Chairperson Dr. Daniela Beckmann said, “We are very pleased at this opportunity to join the United Bank of Egypt in bolstering microfinance in the country. SANAD’s mission is to promote prosperity and employment in the region through targeted support to MSMEs – who are a key economic pillar in Egypt. Yet recent figures indicate that only 25% of the Egyptian microfinance market is currently being served. This transformation represents an important step forward in addressing that gap.”

Ashraf El Kady, Chairman of UBEG, stated: “The United Bank of Egypt has a keen interest in deepening its focus toward this underpenetrated market segment not only as a sound business decision, but also as an effective means of supporting economic and social development. UBEG’s innovative digital financial solutions can play a critical role in reaching out to this important sector, particularly to women and youth. By obtaining the support of the SANAD TAF, we can create a solid plan for sustainable growth.”