The European Bank for Reconstruction and Development (EBRD) has provided the National Bank of Kuwait (NBK), Egypt a fund worth $100 million for lending to private sector projects in the Egyptian market, aimed at tackling the economic impacts of the Covid-19 crisis, Minister of International Cooperation Rania Al-Mashat announced Sunday in a statement. According to Al-Mashat, the NBK will direct this fund for lending to the small and medium-sized projects in particular, which are witnessing a decline in their activities and sales, especially that those projects constitute an important component of the Egyptian economy that need help amid the current crisis.
Here Is What You Need To Know
- The EBRD said that it is dedicating all its activities for the time being to addressing the economic repercussions of the Covid-19 crisis, through its response and recovery programme to support emerging economies, according to the statement.
- According to international cooperation ministry data, EBRD projects in the Egyptian market have reached 115 since the beginning of cooperation between the two sides in 2012, worth €6.5 billion in total, of which the private sector share constitutes 56 percent.
- NBK is an Egyptian Joint Stock Company of the National Kuwait Bank, which is a partner of the EBRD since 2015.
How Startups In Egypt Can Access The Fund At National Bank Of Kuwait, Egypt
Startups in Egypt interested in accessing the NBK loan facilities may do so under the Small and Medium Enterprise (SME) National Fund.
With the collaboration of the Kuwait National Fund, NBK supports its Business Banking Customers who have already established their own small or medium-sized enterprises with new funds of up to KD 400,000 ($1.2 million). Applicants must fulfill the following obligations.
- Applicant’s age must be 21 years old or above
- Startups (should have minimum 1–4 employees)
- An established company that has capital exceeding KD 400,000 with a minimum operation period of 2 years
- Sales should not exceed KD 2,000,000
- Total company assets should not exceed KD 2,000,000
The bank’s loan repayment periods are usually between 1–12 years
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer.