Egypt: Reefy secures $6.5mln loan from EBRD to back youth-led MSMEs

Reefy Microfinance Enterprise Services, CI Capital’s microfinance arm, will obtain a senior unsecured loan of up to EGP 200 million from the European Bank for Development and Reconstruction (EBRD), the international financial institution said on its website.

To be executed under Egypt Youth in Business (YiB) program, the loan will be used for on-lending to private micro, small, and medium-sized enterprises (MSMEs) owned or led by youth in Egypt, especially in remote regions.

It will assist Reefy in adopting new lending practices and business models while expanding its portfolio of loans to this underserved segment of companies.

The loan is accompanied by a package of technical cooperation and investment incentives, funded by the European Union (EU) and EBRD Shareholder Special Fund, to boost the capabilities of Reefy and the sub-borrowers as well as alleviate impact of macroeconomic and inflationary challenges on loan beneficiaries.

It is worth noting that Reefy’s outstanding portfolio hit EGP 2.9 billion at the end of May 2023.