The National Bank of Kuwait – Egypt has secured a $50 million financing package from the European Bank for Reconstruction and Development, with support from the European Union.
The funding will expand access to finance for micro, small, and medium-sized enterprises (MSMEs) and strengthen support for youth entrepreneurs across Egypt.
The package includes a $30 million loan to be on-lent to local private MSMEs, alongside a $20 million facility under the EBRD’s Youth in Business Program.
The latter will specifically target enterprises led or majority owned by entrepreneurs under the age of 35, with a focus on rural areas and women-led businesses.
The Youth in Business component is further enhanced by EU-backed incentives, including a cash grant of up to 10 percent for eligible sub-borrowers under the Egypt Micro and Small Financial Inclusion program.
Additional support mechanisms include a first-loss risk cover funded by the EBRD, as well as a comprehensive technical cooperation package to support implementation, marketing, and awareness.
Capacity-building initiatives will also be extended to participating businesses through the EBRD’s Advice for Small Businesses program, aimed at strengthening operational capabilities and long-term sustainability.
This marks the second collaboration between the EBRD and NBK Egypt under the SME and Youth in Business framework, following a successful financing agreement in 2022.
The partnership reflects a continued commitment to supporting Egypt’s private sector, particularly MSMEs, which remain a critical driver of economic growth and employment.
Francis Malige MD and Head of Financial Institutions EBRD
“This new financing package marks another important milestone in our long-standing partnership with NBK Egypt to keep supporting local SMEs, the backbone of the Egyptian economy. Our Youth in Business line will also support the Egyptian economy by providing financing to youth-led businesses, which remain highly underserved. With thanks to the EU, this package underscores our shared commitment to advancing a more inclusive private sector in the region.”
Yasser El Tayeb, Chief Executive Officer of NBK Egypt, highlighted that, “We are pleased to further strengthen our partnership with the EBRD through the signing of this new financing package, building on the success of our 2022 collaboration. This financing will enable us to expand our financial solutions to support local businesses and stimulate broader economic activity, in line with National Bank of Kuwait’s ambitions for Egypt and its development priorities. The Youth in Business loan will also strengthen our ability to support youth-led MSMEs by enhancing their access to financing. We would like to express our sincere appreciation to the EBRD for its continued support and to the European Union for its valuable contribution.”
The financing package was signed on the sidelines of the EBRD’s flagship conference, ‘Pathways to Paris 2026,’ which brings together key stakeholders from financial institutions, regulators, and capital markets to promote sustainable, low-carbon economic transitions across the regions where the bank operates.
