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EBRD launches Youth in Business program and pilot Skills in Business credit facility -
Total envelope of $140 million to provide financing and technical assistance -
The National Bank of Egypt, first partner bank thanks to new facilities
The European Bank for Reconstruction and Development (EBRD) launched a US$120 million Youth in Business program and a US$20 million Skills in Business credit pilot facility at a virtual event organized in partnership with National Bank of Egypt (NBE).
The facilities will address the main challenges facing Egypt: the economy The country suffers from high levels of youth unemployment and increasing emigration, as well as structural barriers to accessing key resources for business growth.
The Youth in Business program will provide young entrepreneurs with access to badly needed financing and technical assistance to grow their small businesses. The financing provided to NBE is part of a broader $120 million Youth in Business financing package for Egypt, which the EBRD will also offer to other banks and microfinance institutions for on-lending to micro, small and medium enterprises run by young people. entrepreneurs.
The offer will be supplemented by technical assistance to partner banks to strengthen their lending capacity. Additionally, young business owners and managers will have access to advice to increase their productivity and grow their businesses. NBE is the first bank to join the program and a major partner in its launch.
The $20 million Skills in Business credit facility launched in partnership with NBE aims to tackle skills shortages and high staff turnover that hamper growth. Eligible small businesses that receive funding will also benefit from advisory support to recruit, train and retain staff and attract talent.
The Business Skills Advisory Stream is also available through the EBRD Direct Financing Framework and Risk Sharing Facility across the country. the south and east of the Mediterranean (SEMED), supported by funding from the Small Business Impact Fund (EBRD Small Business Impact Fund donors include Italy, Japan, Luxembourg, Norway, South Korea, Sweden, Switzerland, TaiwanBusiness-EBRD Technical Cooperation Fund and the United States of America), and State Secretariat for the Swiss Economy.
Heike Harmgart, EBRD Managing Director for SEMED, said: “The Covid-19 pandemic has exacerbated the challenges young people face when entering the job market or accessing finance and skilled employees. what they need for their business. Limited capital and lack of know-how are among the main obstacles to the success of young entrepreneurs. Placing youth at the center of our priorities for recovery is an important step towards removing these barriers and rebuilding a stronger, fairer economy that benefits everyone.
Hisham Okasha, Chairman of NBE, added: “We are proud to partner with the EBRD and are committed to working towards building an inclusive economy that empowers young people and invests in young talent. Inclusion and sustainability are key pillars of the NBE strategy and are fully aligned with the objectives of Youth in Business and Skills in Business.
Egypt is a founding member of the EBRD. Since the start of the Bank’s operations in this country in 2012, it has invested more than €7.3 billion in 130 projects in the country.
