HSBC and Egyptian microfinance institution Reefy signed on Saturday an agreement to provide 150 million Egyptian pounds ($9.5 million) designed for microbusinesses in the North African country.
A total of one-third of the funding will go for women-led small-and medium-sized enterprises (WSMEs).
As part of the agreement, microbusinesses in Egypt will have access to long-term financing at a competitive interest rate.
The agreement is set to provide additional support to initiatives unveiled by the Egyptian government and the Central Bank of Egypt (CBE) to boost the micro, small, and medium-sized enterprise (MSME) sector. The sector is widely seen as the backbone of Egypt’s economy.
The central bank classifies WSMEs as SMEs that are 51 percent or more owned by women, or SMEs that are 20 percent or more run by a woman, with at least one woman holding a senior executive role.
“This agreement demonstrates our commitment to Egyptian microbusiness and SMEs as well as our ability to deliver the right mix of products, quality of service and international reach.” Helmy Ghazi, Managing Director and Head of Global Banking at HSBC Egypt, said in a statement.
Ghazi added that the agreement aims to support microbusinesses that are looking to grow their operations through easy access to finance.
Meanwhile, Nadeem Habib, Head of Financial Institutions and Public Sector at HSBC Egypt, said: “This agreement comes at a critical time and will help women-led businesses, which were among the most impacted during the COVID-19 pandemic, emerge stronger and more resilient for the future.”
According to Habib, access to finance is cited as one of the biggest challenges faced by microbusinesses, particularly for women.
He added that HSBC is looking forward to addressing this problem by helping more businesses access the financing they need to grow.
Established in 2007, Reefy is first private sector microfinance lender. It had become the first company in Egypt to obtain the microfinance licence in 2015.
In 2017, CI Capital Holding for Financial Investments has acquired an 80 percent stake in Reefy.
