The African Development Bank (AfDB) approved on Wednesday a $22 million senior loan to help Egyptian corporate leasing firm Corplease expand its operations in the country. The decision signalled confidence in Egypt's burgeoning local market and its economy as a whole. The Bank will mobilize $7 million of the $22 million from the Africa Growing Together Fund (AGTF), a co-financing fund, established with the People's Bank of China, according to an AfDB statement. Corplease is a leading non-bank financial institution that provides diverse leasing products and services to a wide range of SMEs and larger corporates, through direct leasing, sale and lease back, as well as structured finance products. The company seeks to provide alternative financing through leases to address funding constraints in the private sector in Egypt. "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 alternative source of funding from traditional banking sources, for business expansion and job creation." said Stefan Nalletamby, AfDB's acting vice-president. "With the annual demand growth expected from the local corporates, the market for leasing in Egypt shows immense potential for investors," With the newly-approved Corplease loan, AfDB adds to its existing initiatives to support financial institutions and deepen financial systems on the continent. The loan will contribute to supporting SMEs operating in Egypt, especially in priority sectors such as agribusiness and food industries, tourism, ICT, clean energy, health, transport, and manufacturing, the bank added. "The loan will contribute to supporting SMEs operating in Egypt, especially in priority sectors such as agribusiness and food industries, tourism, ICT, clean energy, health, transport and manufacturing – all essential contributors to inclusive and sustainable growth," said Malinne Blomberg, AfDB's Country Manager in Egypt. The intervention 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 multiplier effects on industries related to the real sector and support job creation in these value chains. It also aligns with Egypt's vision 2030 and will complement the government's efforts to support the productive capacity of local corporates, creating an enabling private sector environment and sustainable development.
