ADCB, Tamweely sign $3.23mln deal to finance SMEs

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Abu Dhabi Commercial Bank Egypt (ADCB) and Tamweely Microfinance have signed a facility contract worth EGP 100m to support small and medium enterprises (SMEs) in various sectors. The contract marks the start of a strategic partnership between ADCB and Tamweely.

Ihab ElSewerky, CEO of ADCB Egypt, said that supporting SMEs is crucial for achieving economic development and fostering entrepreneurship in Egypt. He added that the cooperation will improve the infrastructure for SMEs, implement economic sustainability practices, and create more job opportunities in the Egyptian market.

ElSewerky explained that the cooperation reflects the bank’s role in supporting this vital sector and empowering project owners economically and socially, as well as integrating them into the financial inclusion and digital transformation system. He said that this is in line with ADCB’s expansion strategy in the Egyptian market, which aims to satisfy customers and achieve the bank’s vision to be their most preferred bank.

Marwa Nabil, Managing Director of SME Financing Activity and member of the Executive Board of Directors of Tamweely, expressed her happiness with the company’s first cooperation with ADCB Egypt. She said that the main goal of this cooperation is to provide the necessary financing for SMEs with annual revenues ranging from EGP 1m to EGP 200m, operating in all industrial, commercial, agricultural, and service activities. She added that this agreement is the beginning of more financial cooperation opportunities with the bank in the future.

She explained that the size of one financing facility granted to a client ranges from EGP 300,000 to EGP 7.5m and is repaid over three months to five years.

Nabil said that the SME financing activity was launched in September 2023, and the current financing portfolio for the activity has reached about EGP 200m.

She added that the SME financing activity receives special attention due to the large size of this customer segment in the Egyptian economy and the huge growth potential that this activity has in the future compared to economic indicators.

Hisham Abbas, Head of Financial Institutions and Corporate Finance at ADCB Egypt, said that the agreement is the beginning of a successful partnership between ADCB and Tamweely, as it aims to increase financing for private sector projects for SMEs.

Ahmed Khorshid, CEO and Managing Director of Tamweely, said that this agreement is part of the strategy to expand the financing allocated to small and medium projects, which the company is relying on – along with microfinance – to increase its market share and boost its expansion plans in the coming period.

Khorshid highlighted that signing the financing agreement, which is the first of its kind with Abu Dhabi Commercial Bank Egypt, is a step towards diversifying the financing sources that the company uses to enhance its activities.

He explained that the financing of small and medium enterprises has become more important in the company’s operating strategy due to its need with the rising inflation rates, which have raised the cost of setting up projects. He pointed out that the total financing portfolio of the company, since its inception until now, has reached EGP 14.1bn, benefiting 515,000 clients who are distributed among 215 branches across 24 governorates.