Cairo – Mubasher: The World Bank (WB) announced providing Egypt with an investment project worth $200 million to finance small- and medium-sized enterprises (SMEs) and to create job vacancies for women and youth.
The investment project entitled “Catalyzing Entrepreneurship for Job Creation” aims at supporting the coming generation of reforms in the North African nation, the WB said in a statement late Wednesday.
The new financing also targets increasing the supply of seed, early-stage, and venture capital going to riskier and innovative startups and young small and medium enterprises with high potential for growth and job creation.
The project is designed to address the major obstacles that young people and women face when launching new businesses, the Washington-based lender said.
“Our partnership with the Word Bank Group aims to empower Egyptian women and youth to become successful entrepreneurs. This is an investment that offers many opportunities to improve the livelihoods of Egyptians through job creation and contributing a solid foundation for the country’s economy,” Sahar Nasr, Egypt’s investment and international cooperation minister, commented.
As Egypt's financial system is dominated by banks lending primarily to mature businesses, the project will channel $145 million mainly through non-bank financial institutions offering loans to small businesses, the statement added.
“This project component will have established lending targets for women and youth-led businesses, first-time borrowers, and small business in less developed regions across Egypt,” the bank highlighted.
The project will also finance coaching opportunities for new businesses through the entrepreneurial lifecycle to build the necessary skills and capacity for success.
The WB’s project in Egypt will invest up to $50 million in privately managed risk capital intermediaries, such as angel funds, accelerators, VC funds, and investment companies.
“While the reforms are beginning to bear fruit, enabling the private sector to create jobs is integral for achieving sustainable and inclusive growth. We are proud to be supporting Egypt’s entrepreneurs across the country, especially the women and young people who remain Egypt’s valuable yet most untapped potential,” Marina Wes, World Bank country director for Egypt, Yemen and Djibouti, added.
It is worth mentioning that the WB has a diverse package of support to Egypt focused on expanding social protection and social inclusion to all citizens, improving competitiveness and infrastructure in less developed parts of the Arab world's most populous country.
The banking group has a portfolio of 16 projects in Egypt with a total commitment of $6.69 billion.
