Small and medium scale businesses in Egypt now have more access to credit, following the World Bank’s commitment of over $200-million to support the next generation of reforms in Egypt aimed at creating more opportunities for young people and women, according to a statement published by the website of the bank.

The project, tagged ‘Catalyzing Entrepreneurship for Job Creation’ will focus on expanding the amount and access to credit for small and medium enterprises, which have proven to be a major source of growth and job creation in Egypt. The project is also designed to address the major obstacles that young people and women face when launching new businesses. 
 

Targets of the Project:

• This project targets women and youth-led businesses, first-time borrowers, and small businesses in less developed regions across Egypt.
• It will also fund coaching opportunities for new businesses through the entrepreneurial life cycle to build the necessary skills and capacity for success.
• Since Egypt’s financial system is dominated by banks lending primarily to mature businesses, the project aims to channel 145 million dollars mainly through non-bank financial institutions offering loans to small businesses.
• The project will also aim to increase the supply of seed, early-stage, and venture capital going to riskier and innovative start-ups and young small and medium enterprises with high potential for growth and job creation.
•  Most importantly, the project will invest 50 million dollars in privately managed risk capital intermediaries, such as angel funds, accelerators, VC funds, and investment companies. 

How To Access The Funds

• To be able to access the World Bank funds, an applicant would have to submit a proposal to the World Bank country office in Egypt.
• International players are particularly encouraged to apply. The funds will be distributed through a transparent and competitive selection process.
• The aim is to leverage the technical capacity and know-how of the private sector in investing these funds.

Related: How International Organisations Are Helping Startups in Africa

The World Bank’s Investment in Egypt So Far

• To date the World Bank’s investment in Egypt has created about 300,000 jobs, benefiting approximately 70,000 women and 56,000 youths. 
• The World Bank has a diverse package of support to Egypt focused on expanding social protection and social inclusion to all citizens, improving competitiveness and infrastructure in less developed parts of Egypt, developing a digital development strategy for the jobs of tomorrow, leveraging private sector investments for infrastructure, and reforms in the education and health sector to help build human capital. 
• The World Bank currently has a portfolio of 16 projects in Egypt with a total commitment of $6.69 billion.
• The new program builds on the success of the ongoing ‘’Promoting Innovation for Inclusive Financial Access’’ project which provides small and medium businesses with access to finance and promotes private sector job creation across Egypt.

Charles Rapulu Udoh

Charles Rapulu Udoh a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organisations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution and data analytics both in Nigeria and across the world.