Fawry, Egypt’s dominant fintech and banking services firm, has secured a EGP 250 million (approximately $4.7 million) financing facility for its subsidiary, Fawry MSME Finance. The capital injection from the European Bank for Reconstruction and Development (EBRD) is aimed at boosting lending to micro, small, and medium-sized enterprises (MSMEs) run by young entrepreneurs across the country.
Quick Facts
- Financing Amount: EGP 250 million facility.
- Provider: European Bank for Reconstruction and Development (EBRD).
- Target Beneficiaries: Egyptian MSMEs led by entrepreneurs under 35.
Fueling Egypt’s Next Generation of Founders
The financing is part of the EBRD’s wider “Youth in Business” program, designed to unlock the economic potential of young business owners. The funds will be specifically directed to privately owned MSMEs that are either led or majority-owned by individuals under the age of 35.
A key objective of the partnership is to improve financial inclusion beyond major urban centers, with a stated focus on reaching underserved and rural areas in Egypt. By providing Fawry with this facility, the EBRD aims to channel much-needed capital to a critical, high-growth segment of the economy.
More Than Just Capital
The agreement includes several layers of support to de-risk lending and encourage growth. It features a first-loss risk cover of up to 10%, mitigating potential defaults for the lender.
Furthermore, the program offers European Union (EU)-funded investment grants, providing cash incentives of up to 10% of the loan’s value to eligible MSMEs. This structure is designed to make borrowing more attractive and sustainable for young companies.
The partnership also delivers a technical cooperation package to bolster Fawry MSME Finance’s operational capacity, focusing on gender-responsive lending practices and supporting its ongoing digital transformation. Participating MSMEs will also gain access to non-financial advisory support through the EBRD’s “Advice for Small Businesses” program, helping them improve their operational sustainability and scale effectively.
About Fawry
Founded in 2008, Fawry is a leading African fintech company and Egypt’s largest e-payment platform. It offers a suite of financial services to consumers and businesses through a network of over 300,000 locations. Fawry MSME Finance is a wholly owned subsidiary dedicated to providing lending and financial solutions to micro, small, and medium-sized enterprises in Egypt.
Source: Zawya
