SANAD and Banque du Caire strengthen partnership to support MSMEs, agribusinesses, microfinance institutions in Egypt in light of COVID-19 crisis
Investment of USD 15 million bolsters funding base for important economic pillars
Luxembourg and Cairo, July 29, 2020 – The SANAD Fund for MSME (SANAD) announced today that it has provided a loan of USD 15 million to partner Banque du Caire (BdC) for on-lending to micro, small, and medium enterprises (MSMEs), agricultural producers, and microfinance institutions (MFIs) in Egypt. The investment aims to strengthen the bank’s ability to continue offering much-needed liquidity to business owners and farmers in response to the economic difficulties brought about by the COVID-19 crisis.
A SANAD partner since 2017, the bank has proven its commitment to supporting the fund’s mission to promote economic growth and job creation by channeling tailored financing to Egypt’s business owners.
SANAD Board Chairperson Dr. Daniela Beckmann said, “Banque du Caire has been a valuable partner to SANAD in our efforts to expand and deepen financial inclusion in Egypt. As the economic effects of the COVID-19 outbreak ripple across the region, we are glad to once again join forces with this impactful institution to strengthen the financing base for local entrepreneurs – a significant pillar of income generation, stability, and employment within their communities.”
BdC’s Chairman Tarek Fayed said: “This new investment particularly aims to help businesses confront the current difficult environment by maintaining their access to dedicated financing, including providing needed liquidity to farmers and small agricultural enterprises, as well as to MFIs with an outreach to low-income, rural, and otherwise disadvantaged groups. We believe that these segments are fundamental parts of the Egyptian economy and have always made them key priorities of our lending activities.”
The SANAD Fund for MSME finances micro, small and medium enterprises and low-income households in the Middle East and North Africa via qualified local lenders. SANAD thereby fosters economic development and job creation – including youth employment – agriculture, affordable housing, and innovations in finance and financial technologies. SANAD strives to meet these goals by providing debt and equity financing to its local partners. The SANAD Technical Assistance Facility multiplies the fund’s development impact and outreach through capacity-building with partner institutions, developing financial infrastructures according to the principles of responsible finance and conducting much required R&D.
An impact investment fund advised by Finance in Motion, SANAD’s investors include the KfW Development Bank, which initiated the fund; the German Federal Ministry for Economic Cooperation and Development (BMZ); the European Union; Switzerland’s State Secretariat for Economic Affairs (SECO); OeEB, the Development Bank of Austria; Germany’s GLS Bank and GLS Treuhand; the Dutch development bank FMO; and Calvert Impact Capital.
For more information on the SANAD Fund for MSME, please visit: www.sanad.lu
For more information on Finance in Motion, please visit: www.finance-in-motion.com
About Banque du Caire
Banque du Caire is known in the market for pioneering institutionalized microfinance operations. The bank holds around 25% of the microfinance market share in Egypt's banking sector. The bank has succeeded in consolidating its leadership through remarkable expansion and growth in financing small and medium enterprises with a recorded growth rate of 220% at the end of December 2019 compared to December 2018. The total facilities granted to customers in this segment amounted to EGP 9bn in 2019, growing by 24% year-over-year. The bank provides necessary funds, whether for individuals or corporates to increase financial inclusion and sustainability, while regularly revisiting its business plan and strategy in order to meet different client needs.
Media contact – SANAD
Senior Officer, Marketing & Communications
Phone: +49 (0)69 / 271 035-470
Media contact – Banque du Caire
Head of Corporate Communications & Sustainable Development
Phone: +2 02 2264 8868