The European Bank for Reconstruction and Development (EBRD) has approved an unsecured $200 million loan to the National Bank of Egypt (NBE), earmarked to expand lending to small and medium-sized enterprises (SMEs) through the bank and two of its subsidiaries: Al Ahly Leasing and Al Ahly Tamkeen for Microfinance.
According to project documents published on the EBRD’s website, the financing package consists of two tranches: a committed $100 million disbursed upon signing, and a non-committed $100 million to be activated at a later stage. The development bank is also working to mobilize contributions from commercial lenders through an A/B loan structure, a mechanism designed to attract private-sector liquidity.
Half of the funding directed outside Cairo and Alexandria
In line with EBRD’s inclusion goals, 50 percent of the loan will be allocated to projects located outside Egypt’s two largest cities, while the remaining half will support enterprises owned or led by women and youth. The bank said the initiative aims to increase access to finance for underserved demographics and strengthen nationwide financial inclusion.
Supporting SME expansion and narrowing Egypt’s credit gap
The project is designed to expand NBE’s SME lending platform and address the persistent financing gap faced by small businesses — a key barrier to enterprise growth in Egypt. The initiative received a transition impact score of 66 points, reflecting its potential to drive structural economic improvements.
EBRD noted that the loan provides more favorable terms than those available in the local market, helping attract private-sector investors and diversify NBE’s funding sources. The package also supports responsible lending standards and gender-responsive finance initiatives across the bank’s operations.
NBE reports strong financial performance
The National Bank of Egypt recorded robust results in the previous fiscal year, with total pre-tax profits reaching EGP 223 billion. After taxes, profits amounted to EGP 133.3 billion, up from EGP 70.7 billion in December 2023 — an 89 percent year-on-year increase.
According to consolidated financial statements, total assets surged to EGP 8.1 trillion in December 2024, compared to EGP 5.2 trillion the previous year, marking 55 percent growth and edging toward EGP 8.8 trillion by August 2025.
Shareholders’ equity also climbed sharply, rising by EGP 237 billion to reach EGP 534 billion, an 80 percent increase over December 2023.
A push toward inclusive and sustainable economic growth
Analysts say the partnership between EBRD and Egypt’s largest state-owned bank underscores a broader strategic push to empower SMEs, strengthen private-sector activity, and advance balanced regional development.
By targeting women, young entrepreneurs, and businesses in less-served governorates, the loan is expected to support job creation, stimulate local economies, and reinforce Egypt’s long-term economic resilience.
