Financing your company in Egypt: banks, agencies and funds

Banks pushed towards SMEs

The Central Bank of Egypt requires banks to devote a minimum share of their loan book to small and medium-sized enterprises. NBE, Banque Misr, CIB and QNB Egypt have therefore built dedicated offers for traders and manufacturers.

Law 152 of 2020 on micro, small and medium enterprises

This law classifies businesses by turnover and provides tax and administrative incentives. One of its aims is to encourage informal businesses to register, which then opens the door to bank credit for them.

MSMEDA, the public desk for new projects

The Micro, Small and Medium Enterprise Development Agency funds projects through partner banks and associations and guides project owners through the paperwork. Its offices cover every governorate, from the Red Sea to Aswan.

Collateral demanded by banks

Banks often ask for real collateral, cheques, a personal guarantee or cover from the Credit Guarantee Company. The latter shares the risk with the bank for SMEs that lack sufficient collateral of their own.

Leasing and factoring for equipment

Law 176 of 2018 governs financial leasing and factoring. A company can fund machinery or vehicles without tying up cash, as our page on car leasing in Egypt explains, or sell its invoices to get paid faster.

Start-ups and venture capital in Cairo

Cairo is home to most incubators and seed funds, including Flat6Labs, as well as regional investors. Fintech and logistics firms have raised large sums there, but equity funding does not replace credit for traditional businesses.

Industrial zones and priority sectors

The 10th of Ramadan, 6th of October and Sadat zones host many industrial SMEs. Textiles, food processing, building materials and car parts are among the sectors regularly targeted by public financing and guarantee programmes.

Sharia-compliant financing for Egyptian firms

Islamic banks finance stock and equipment through murabaha, ijara or musharaka. These structures suit entrepreneurs who want a margin known in advance and a sharia-compliant arrangement to fund working capital and purchases of goods.

Moving up from microfinance to a bank

Many entrepreneurs start with microcredit in Egypt, then move on to bank credit as their turnover grows. A positive repayment history at I-Score makes this step towards larger amounts and longer terms considerably easier to take.

The Algerian model as a counterpoint

A business loan in Algeria relies heavily on public job-creation schemes. Egypt mixes more bank lending, public refinancing and venture capital, with a marked concentration of deals and funding in Cairo and Alexandria.

Foreign currency loans for exporters

Exporters of farm produce, textiles or chemicals can sometimes borrow in dollars or euros, since their revenue is earned in foreign currency. Other companies borrow in Egyptian pounds to avoid exchange rate risk.

The business plan banks expect

Egyptian banks ask for a feasibility study costed in pounds, with forecast sales, margins, cash needs and an investment timetable. A realistic study that factors in inflation and the cost of imports makes the application far more credible.

Steps to a business loan in Egypt

1. Register the company in the commercial register, obtain the tax card and, where needed, go through the GAFI one-stop shop.
2. Open a business account and run your revenue through it for several months to build a track record.
3. Prepare a feasibility study and financial statements, certified by an accountant for larger amounts.
4. Compare banks' SME offers, MSMEDA programmes and, for equipment, licensed leasing companies.
5. Negotiate the collateral, including possible cover from the Credit Guarantee Company, then sign the contract.
6. Monitor disbursement in tranches and send the bank the accounts it requests every year.

What Egyptian business financing costs

Company file required by Egyptian banks

• Up-to-date commercial register
• Tax card and recent tax returns
• Articles of association and national ID cards of the partners
• Financial statements or business account statements
• Feasibility study costed in Egyptian pounds
• Lease or title deed for the business premises
• Pro forma invoices for the equipment to be financed

Why business loans get refused in Egypt

• Presenting an unregistered business, with no commercial register or tax card, to a bank that legally cannot finance it.
• Building a business plan that ignores the rising cost of imported inputs after the devaluations of the Egyptian pound.
• Mixing personal and business accounts, which prevents the bank from measuring the company's real turnover.
• Paying a commission to a middleman who promises access to a subsidised initiative, when applications are filed directly with the bank.

Lenders to contact

• Banque Misr: Major Egyptian state-owned bank providing credit to individuals and financing facilities supporting small and micro enterprises across Egypt.
• Al Baraka Bank Egypt: Egyptian subsidiary of the Bahrain-based Al Baraka group, an Islamic bank providing Sharia-compliant banking services and financing across Egypt.
• ADIB Egypt (Abu Dhabi Islamic Bank – Egypt): Egyptian arm of Abu Dhabi Islamic Bank, a leading Islamic banking player in Egypt recognised in Euromoney's Islamic Finance Awards.
• Commercial International Bank (CIB): Egyptian private commercial bank offering personal, mortgage and car loans, along with travel loans and education loans to fund studies.

Financing for entrepreneurs in Egypt: targeted answers