The European Bank for Reconstruction and Development (EBRD) is providing a loan of up to EGP 250 million (€4.4 million) to Fawry MSME Finance to support youth-led and youth-owned micro, small and medium-sized enterprises (MSMEs) in Egypt. The financing will be directed toward businesses run or majority owned by entrepreneurs under the age of 35, with a particular focus on expanding opportunities in rural areas.
The initiative is part of the EBRD’s Youth in Business programme, which aims to improve access to finance for young entrepreneurs through partner financial institutions. In addition to the credit line, eligible sub-borrowers will benefit from EU-funded cash incentives of up to 10 per cent of the loan amount, helping to make financing more affordable and accessible for young business owners.
To strengthen implementation, the EBRD will also provide a technical cooperation package to Fawry MSME Finance. This support will focus on capacity-building, gender-responsive lending practices, and advisory assistance to enhance the institution’s digital transformation and operational capabilities.
Further non-financial support will be extended to youth-led MSMEs through the EBRD’s Advice for Small Businesses programme, which is funded by the EBRD and the Small Business Impact Fund. This will help entrepreneurs build skills, improve business management, and scale their operations more effectively.
The partnership marks the first collaboration between the EBRD and Fawry MSME Finance, a leading digital microfinance institution in Egypt. Both organisations highlighted the importance of expanding financial inclusion for young entrepreneurs, with the initiative expected to support job creation and broader economic participation among Egypt’s youth.
