Egyptian fintech giant Fawry has secured a senior unsecured loan of up to EGP 250 million (approximately $5.2 million) from the European Bank for Reconstruction and Development (EBRD). The local currency loan is designated for Fawry MSME, the company’s division dedicated to micro, small, and medium enterprises, with the goal of expanding financing for youth-led businesses across Egypt.
Driving Youth Entrepreneurship with Egypt YiB
The financing is provided under the EBRD’s Egypt Youth in Business (YiB) programme, a targeted initiative designed to open up economic opportunities for young entrepreneurs. Fawry MSME will on-lend the funds to private MSMEs owned or led by young people, with a strategic focus on reaching underserved businesses in remote regions of the country. This effort aims to foster inclusive growth and broaden access to essential financial services for a key demographic.
A Dual Focus on Inclusion and Competitiveness
The project is structured to deliver impact on two fronts: inclusivity and competitiveness. To enhance inclusion, Fawry MSME will adopt new lending practices and business models specifically tailored to the needs of young entrepreneurs, helping the institution grow its support for this underserved market segment. On the competitiveness side, the loan will enable Fawry MSME to significantly expand its loan portfolio by attracting new youth-led clients, while simultaneously maintaining sound asset quality and a strong regional presence.
Strengthening Resilience with EU-Backed Support
The loan is reinforced by a comprehensive support package funded by the EU Neighbourhood Investment Facility, the EBRD’s Shareholder Special Fund, and the EU–Egypt Micro and Small Inclusion Programme. This package includes technical cooperation, first-loss risk cover, and other incentives. The support is crucial for strengthening the operational capabilities of Fawry MSME and its sub-borrowers, building resilience against the backdrop of Egypt’s current macroeconomic challenges.
About Fawry
Launched in 2018, Fawry MSME is the micro, small, and medium enterprise financing arm of Fawry, a leading Egyptian digital transformation and e-payments platform. It provides a range of financial services to smaller businesses through innovative and smart digital solutions, aiming to boost financial inclusion and support the growth of the SME sector in Egypt.
Source: Waya
