Reefy Microfinance Enterprise Services, a subsidiary of CI Capital, has successfully secured a loan agreement worth EGP200 million ($6.5 million) from the European Bank for Development and Reconstruction (EBRD), reports local media outlets. This financial backing aims to support the expansion of Reefy’s micro, small, and medium-sized enterprise (MSME) loan portfolio, particularly targeting youth-owned and youth-led businesses, especially in remote areas. The funding is part of the Egypt Youth in Business (YiB) program and will enable Reefy to adopt innovative lending practices and business models in order to address the challenges faced by MSMEs amidst economic uncertainties in Egypt.
The loan agreement is accompanied by a range of technical cooperation measures and investment incentives, funded by the European Union (EU) and the EBRD’s Shareholder Special Fund. These measures are designed to enhance the capacities of Reefy and its borrowers, as well as mitigate the impact of macroeconomic challenges and inflation on loan
beneficiaries. The current economic climate has presented significant liquidity challenges for very small, small, and medium-sized businesses, compounded by a slight decline in economic growth and a significant devaluation of the local currency, making it difficult for these enterprises to make necessary investments.
As of May 2023, Reefy’s outstanding portfolio was estimated at EGP2.9 billion, underscoring the institution’s substantial presence in the microfinance sector. With this latest funding, Reefy aims to expand its support for MSMEs and contribute to the growth and development of Egypt’s entrepreneurial ecosystem.
