The European Bank for Reconstruction and Development (EBRD) is supporting young entrepreneurs in Egypt with a loan worth up to 200 million Egyptian pounds (approximately €6 million and $6.5 million) to Reefy Micro-Finance Enterprise Services (Reefy). Established in 2007, Reefy is first private sector microfinance lender, and the first licensed microfinance institution in Egypt back in 2015 "Supporting micro, small and medium-sized enterprises (MSMEs) led or owned by young entrepreneurs is essential to help the Egyptian economy absorb the financially underserved but ever-growing number of young people joining the labour market and open up their economic opportunities." EBRD statement read on Wednesday. The loan is provided under the EBRD's Youth in Business (YiB) programme and is mainly dedicated to support privately-owned micro-enterprises that are led or owned by entrepreneurs under the age of 35, with a special focus on borrowers located outside of Cairo and Alexandria. Eligible businesses will also receive incentive grants provided by the European Union (EU), of up to 10 percent of the total sub-loan amount, the EBRD added. The YiB programme will also offer capacity-building and advisory services to help Reefy better understand and serve the financial needs of young entrepreneurs on the one hand, and to upscale the young entrepreneurs' business skills and entrepreneurial mindset through non-financial services on the other. This is the EBRD's second loan to Reefy, following a successful Women in Business loan signed back in 2021, and the fourth YiB loan under Egypt's YiB Programme. Egypt is a founding member of the EBRD and since the start of its operations there in 2012, the bank has invested more than €10.3 billion in 164 projects.
