African Development Bank (AfDB) approved a $22 million Senior Loan to help corporate leasing company (Corplease) expand its lending to SMEs in Egypt.
The decision signalled confidence in the growing local market and in Egypt’s economy as a whole.
Out of the $22 million, African Development Bank will mobilize $7 million from the Africa Growing Together Fund (AGTF), a co-financing fund, established with the People’s Bank of China.
Corplease is a leading non-bank financial institution that provides diverse leasing products and services to SMEs and larger corporates, through sale, direct leasing and leaseback, as well as structured finance products. to address funding constraints in the private sector in Egypt, corp lease seeks to provide alternative financing through leases.
“The need for leasing products in Egypt is growing consistently on an annual basis to meet the acute demand by small, medium and large-sized corporates for an alternative source of funding from traditional banking sources, for business expansion and job creation. With the annual demand growth expected from the local corporates, the market for leasing in Egypt shows immense potential for investors,” said Stefan Nalletamby, Acting Vice-President for the Private Sector, Infrastructure and Industrialization Complex at the African Development Bank.
With the newly-approved Corplease loan, AFDB adds to its existing initiatives to support financial institutions and deepen financial systems in Africa. The loan will contribute to supporting SMEs operating in Egypt, especially in priority sectors such as food industries and agribusiness, clean energy, tourism, ICT, health, transport and manufacturing.
The support is in line with the bank’s high 5 strategic priorities, specifically, Feed Africa, Industrialize Africa and Improve the Quality of Life for the people of Africa.
The bank’s support will have multiple impacts on industries related to the real sector and support job creation in these value chains.
It is also in line with Egypt’s vision 2030 and will complement the government’s efforts to support the productive capacity of local corporates, creating sustainable development and an enabling private sector environment.