African Development Bank has approved a $22 million Senior Loan to help Egypt’s Corporate Leasing Company (Corplease) expand its operations in the North African country.
The decision, according to Gershwin Wanneburg of AfDB’s Communication and External Relations Department, signalled confidence in a burgeoning local market and in the Egyptian economy as a whole.
AfDB will mobilise $7 million of the sum from Africa Growing Together Fund, a co-financing fund, established with the People’s Bank of China.
Corplease is a leading non-bank financial institution that provides diverse leasing products and services to a wide range of small and medium-sized enterprises and larger corporates, through direct leasing, sale and lease back, as well as structured finance products.
It seeks to provide alternative financing through leases to address funding constraints in the private sector in Egypt.
Acting Vice-President for the Private Sector, Infrastructure and Industrialisation Complex at AfDB, Stefan Nalletamby, said, “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. With the annual demand growth expected from the local corporates, the market for leasing in Egypt shows immense potential for investors.”
With the loan, AfDB has added 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, Information and Communications Technology, clean energy, health, transport and manufacturing – all essential contributors to inclusive and sustainable growth, said AfDB Country Manager in Egypt, Malinne Blomberg.
The intervention is in line with the Bank’s High 5 strategic priorities, specifically ‘Feed Africa’, ‘Industrialise Africa’ and ‘Improve the Quality of Life for the people of Africa’.
The bank’s support will have multiplier effect 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, Financial Street learnt.