The African Development Bank (AfDB) has nodded for a USD 22 Mn senior loan to be given to Egypt’s Coporate Leasing Company (Corplease).
The fund will enable the company to expand in the North African country, where there is a growing local market contributing significantly to one of the continent’s best economies.
A state from the bank says that USD 7 Mn of the loan will be mobilized from the Africa Growing Together Fund (AGTF) – a co-financing fund established with the People’s Bank of China.
Corplease, which provides a diversity of leasing products and services to SMEs and larger corporates, will use the funds to support small-scale businesses operating in Egypt.
The USD 22 Mn is well channeled, judging from Corplease’s track record of providing alternative financing in the form of leases, ultimately addressing the financial issues troubling Egypt’s private sector.
According to Stefan, Nalletamby, Acting VP for for the Private Sector, Infrastructure and Industrialization Complex at AfDB, the need for leasing products in Egypt grows consistently on an annual basis, meeting demand by SMEs for alternative sources of funding from conventional banks.
“With the annual demand growth expected from the local corporates, the market for leasing in Egypt shows immense potential for investors,” he said.
The USD 22 Mn loan falls in the line of AfDB’s efforts to support financial institutions and deepen the African financial system.
With the newly-approved Corplease loan, the African Development Bank adds to its existing initiatives to support financial institutions and deepen financial systems on the continent.
Priority is being placed on the SMEs operating in the agribusiness, toursim, ICT, cleantech, health, transport and manufacturing sectors.
The loan shares a bigger picture with Egypt’s vision 2030 – which calls out for inclusive development – and creates room for its private sector to partake in sustainable development.
Image Courtesy: Intrepid Travel
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