(AfDB) - The Board of Directors of the African Development Bank has approved a loan of $160 million to Banque Misr to finance Egyptian businesses that invest in key sectors of the economy.

The loan comprises a $130 million line of credit from the Bank and an additional $30 million in funds from the Africa Growing Together Fund (AGTF).

The financing will offer Banque Misr long-term liquidity so it can extend loans to small and medium-sized enterprises and corporates operating in industry, information and communications technology and agriculture/agribusiness.

“Our ambition is to unleash the potential of the Egyptian private sector to strengthen its contribution to Egypt’s economy," said Mohamed El Azizi, Director General of the African Development Bank for North Africa. “Our objective is to open new possibilities for them to invest and grow in order to contribute to food security and strengthen the dynamics of industrial transformation and modernization.”

The loan will contribute to increasing the country’s industrial production, strengthening economic competitiveness, generating fiscal revenues and creating employment opportunities, especially for women and young people.

Stefan Nalletamby, Director of the African Development Bank’s Financial Sector Development Department, said, “the private sector is a key driver of economic growth and job creation in Egypt. The loan to Banque Misr, whose tenor is 10 years, will facilitate access to stable financing for small, medium and large companies in key sectors of the economy.”

The loan aligns with the Bank’s Private Sector Development Strategy (2021-2025), particularly the objective to improve access to finance and deepen financial systems.

Egypt is one of the founding members of the African Development Bank Group. Since the start of operations in the country in 1974, the Bank has mobilized more than $6.7 billion in investments in the energy, water and sanitation, transport, human development, agriculture and the financial sectors.