CGC Egypt and AfDB Discuss Cooperation to Finance Young Entrepreneurs in Egypt
Naglaa Bahr: We value the African Development Bank's efforts to support MSMEs in Egypt to achieve sustainable development
The Credit Guarantee Company, CGC Egypt, held a high-level dialogue with a delegation from the African Development Bank in CGC’s headquarter in the Smart Village on the 31st of May 2023. The two parties discussed ways to strengthen cooperation to support young entrepreneurs, with a special focus on empowering women and achieving sustainable development goals including projects that combat climate changes. This would be carried out by providing the necessary finance for MSMEs through developing new guarantee products that suit the needs of this category and the and market variables.
Naglaa Bahr, CGC Managing Director, and Solomon Quaynor, African Investment Bank’s Vice President – Private Sector, Infrastructure & Industrialization, in addition to high officials from both parties, participated in the meeting.
Commenting on the meeting, Naglaa Bahr, CGC Managing Director, noted that CGC values the African Development Bank’s efforts to support MSMEs in Egypt and its new initiatives that support financing young entrepreneurs in Egypt with special focus on women. This is in addition to its important role in financing green and social initiatives all over Africa and particularly in Egypt.
Bahr asserted that credit guarantee plays a major role to mitigate the impact of economic challenges witnessed by global financial markets in the shadow of the continuation of the Russian-Ukrainian war and the high rates of inflation. This is through its special capacities to provide and develop guarantee products that correspond to the changing market needs and enable SMEs’ owners to continue their business activities. Bahr explained that CGC succeeded, in cooperation with Egyptian banks, to provide financing of more than 269 million EGP to more than 206 SMEs by the end of the first quarter of 2023. More than 50% of this financing was directed to youth and 23% to women.
CGC Egypt succeeded as well through the “Engz” program, and its advanced digital platform, to reach a new category of SMEs that have never dealt with banks before. This reflects the new direction of the company to directly reach business owners and young entrepreneurs, in addition to the creation of new working opportunities benefiting from advanced technologies and digital platforms. This is to provide the necessary financing, through partner banks, with the least prices, procedures and documents, and with no extra expenses. CGC also provides technical and informational support for business owners to make the best use of the available financing.
Naglaa Bahr added that the company is in the process of achieving its major objective to support SMEs and contribute to the creation of new working opportunities for youth, and enable them to access financial and non-financial services. CGC is eager to expand its cooperation with regional and international institutions, in addition to the African Development Bank to exchange experience and collaborate in this regard.
From his side, Mr. Solomon Quaynor – Vice President of the African Development Bank Group – Private Sector, Infrastructure & Industrialization, said that the Bank is one of the major partners of development in Egypt. He added that the bank recognizes the importance of MSMEs in elevating the level of the private sector, offering working opportunities for youth and women, to contribute in achieving sustainable development.
Mr. Solomon Quaynor noted that the bank, through its new and special initiatives, aims to support the financing of young entrepreneurs. He also stated that guarantee has a vital role to play to reduce the risks of this financing and encourage various financial institutions to support it.
It is worth mentioning that CGC Egypt is the only company entrusted with issuing guarantees in Egypt, through facilitated governmental and international support since its inception in 1991 as an Egyptian joint stock company that follows international operating standards and it is subject to the supervision of the Central Bank of Egypt.
