The European Bank for Reconstruction and Development (EBRD) has extended a financing facility worth EGP 250m (approximately €4.4m) to Fawry Microfinance, a wholly owned subsidiary of Fawry for Banking Technology and Electronic Payments, in a move aimed at expanding digital microfinance services in Egypt.
The facility is designed to enhance access to finance for micro, small and medium-sized enterprises (MSMEs), with a particular focus on businesses led by young entrepreneurs—an underserved segment despite its critical role in economic growth and job creation.
The financing is being provided under the EBRD’s Youth in Business programme and will target private enterprises led or majority-owned by individuals under the age of 35. It will prioritise outreach in underserved and rural areas, supporting broader financial inclusion.
The programme incorporates a risk-sharing structure that includes first-loss coverage of up to 10%, alongside investment grants funded by the European Union. These grants offer eligible borrowers cash incentives of up to 10% of the loan value, helping to reduce financing costs and improve affordability.
Beyond funding, the partnership includes a comprehensive technical assistance package from the EBRD to support programme implementation, enhance operational efficiency, and develop gender-responsive lending practices. It also provides specialised advisory services to accelerate Fawry Microfinance’s ongoing digital transformation.
In addition, the EBRD’s Small Business Advice programme—supported by the Small Business Impact Fund—will deliver non-financial support to participating youth-led enterprises, strengthening their capacity for growth and long-term sustainability.
The facility reinforces Fawry Microfinance’s position at the intersection of fintech and inclusive finance, enabling it to scale lending to high-potential youth segments while expanding its reach in underserved markets. The initiative aligns with Egypt’s broader strategy to advance financial inclusion, promote entrepreneurship, and drive sustainable economic development.
Ashraf Sabry, chief executive of Fawry, said the partnership would enable the company to expand its tailored financial solutions for young entrepreneurs nationwide, supporting its commitment to financial inclusion and the development of future business leaders.
Mahmoud Arafa, acting chief executive of Fawry Microfinance, said the funding would strengthen the platform’s ability to deliver fast, digital financing solutions tailored to the needs of young entrepreneurs, while broadening outreach through a combination of financing, risk-sharing mechanisms, and technology-driven growth.
Mark Davis, managing director for the Southern and Eastern Mediterranean region at the EBRD, said the cooperation marks the bank’s first partnership with Fawry and opens a new avenue to support youth-led MSMEs. He added that the initiative is key to enhancing the Egyptian economy’s capacity to absorb a growing youth workforce and expand economic opportunities.
