EGYPT — The African Development Bank has approved a US$22 million Senior Loan to help Egypt’s Corporate Leasing Company (Corplease) expand its operations in the North African country.
The decision signaled confidence in a burgeoning local market and in the Egyptian economy as a whole.
The revealed in statement that it will mobilize US$7 million of the $22 million from the Africa Growing Together Fund (AGTF), 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 SMEs and larger corporates.
Some of its services include direct leasing, sale and lease back, as well as structured finance products.
AfDB noted that Corplease seeks to provide alternative financing through leases to address funding constraints in the private sector in Egypt.
“The need for leasing products in Egypt is growing consistently on an annual basis to meet the acute demand by corporates for alternative source of funding from traditional banking sources, for business expansion,” said Stefan Nalletamby, Acting Vice-President for the Private Sector, Infrastructure and Industrialization Complex at the African Development Bank.
“With the annual demand growth expected from the local corporates, the market for leasing in Egypt shows immense potential for investors.”
Malinne Blomberg, African Development Bank Country Manager in Egypt explained that the loan will contribute to supporting SMEs operating in Egypt, especially in priority sectors such as agribusiness and food industries, tourism, ICT, clean energy, health, transport and manufacturing.
The intervention is in line with the Bank’s High 5 strategic priorities, specifically “Feed Africa”, “Industrialize Africa” and “Improve the Quality of Life for the people of Africa”.
The Bank noted that its support will have multiplier effects on industries related to the real sector and support job creation in these value chains.
AfDB further noted that its support “also aligns with Egypt’s vision 2030 and will complement the government’s efforts to support the productive capacity of local corporates”.