| Credit line for small Egyptian SMEs |
Project Description
30 M€ Concessional credit line to Crédit Agricole Egypt for the downscaling of its activities to reach small Egyptian SMEs
Implementing Agency
Credit Agricole Egypt (CAE)
Final beneficiaries of the project
SMEs with sales turnover under 40 M EGP (under 5 M EUR)
Development objective
Promoting the growth of Egyptian SMEs and their contribution to employment and poverty reduction, through reducing financial exclusion and promoting access to credit for SMEs
Project’s specific objectives
>>> To support the downscaling of the credit activity of CAE’s Enterprise Department in favour of Small enterprises currently non targeted : SMEs with turnover less than 10 M EGP (equivalent to 1,2 M EUR)
>>> To enhance the quality of existing credit supply for small and medium enterprises: SMEs with turnover less than 40 M EGP (equivalent to 5 M EUR)
>>> To strengthen Small and Medium Enterprises management through training programs and technical supports
Content of the SMEs Project
>>> Refinancing loans to small enterprises with sales turnover under 40 millions EGP (50% of the credit line will be earmarked for SMEs with sales turnover under 10 M EGP)
>>> Supporting to CAE for setting up a strategy and procedures adapted to the characteristics of Egyptian SMEs: specific rating procedures, training for bank staff
>>> Supporting to SMEs: capacity building program through communication, training and specific supports
Cost and Financing Plan
The 30 M€ credit line (240 millions EGP) will be disbursed within a maximum 3 years period, in line with the schedule for setting up the strategy and the SMEs support program.
Expected impact of the project
>>> Financing the investments of about 500 SMEs and double the average duration of granted loans
>>> Improvement of SMEs entrepreneurs’ skills level and management capacities
Durability of the project
The availability of long term resources and the support program for setting up a SMEs strategy guarantee the sustainability of this activity within CAE.
The strengthening of the management capacities of SME clients will enhance their growth perspectives.
Project Partners
In brief
AFD Foreign States committee decision : 25 june 2008
Project cost : 30M€
Cofinancers : -
Maturity / Grace period : 12 years / 4 years
Type of loan : Non sovereign concessional
Direct beneficiary : Crédit Agricole Egypt
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