The European Bank for Reconstruction and Development (EBRD) will provide investments worth $ 50 million, through the Lorax Capital Partners Fund II, to finance small and medium sized enterprises (SMEs) in Egypt, according to International Cooperation Minister Rania Al-Mashat.
Al-Mashat said, in a statement on Thursday that the new investments aim to provide the required liquidity for SMEs in light of the negative impact of the corona pandemic on businesses.
The minister stressed the importance of the partnership with the Bank in supporting development efforts in Egypt at the public and private levels through making funds available for projects of highest priority.
She noted that the ministry is seeking to mobilize all parties concerned, including public, private and international institutions to enhance the framework of cooperation and identifying priorities for financing to support successful SMEs.
On his part, EBRD Director of Equity Funds Anne Fossemalle expressed her satisfaction with the support of the Lorax Fund in Egypt, which seeks to achieve long-term capital growth in stocks and quasi-capital investments in Egyptian SMEs.
Fossemalle said the Lorax financing is the second of its kind, highlighting the EBRD's previous involvement through the equity commitment known as the Egypt Prosperity Medium Capital Fund "Ezdehar" in 2016.
The official added that during the last stage, the bank signed agreements worth $ 850 million with local Egyptian banks to support loans to SMEs.
It is noteworthy that Egypt is a founding member of the EBRD, contributing € 6.8 billion to some 123 projects in the country.
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