Egypt: CGC guarantees $5.87bln for SMEs in 9M 2023

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Credit Guarantee Company (CGC) continues to support the national economy, despite the challenging conditions faced by the world’s economies due to recent wars and crises.

The company, in collaboration with the Egyptian banks, succeeded in providing guarantees worth more than EGP 181.54bn to 223,000 beneficiaries from SMEs in the first nine months of 2023.

This reflects the company’s mission of supporting the national economy by facilitating financing for SMEs and enabling them to overcome the multiple challenges of this period.

Naglaa Bahr, CGC Managing Director, commented: “The role of the guarantee is to support the growth of the national economy, especially in difficult circumstances. This is achieved by focusing on supporting small, medium, and micro enterprises with customized guarantee products that meet the changing market needs. This contributes to empowering entrepreneurs, helping them to continue their businesses and creating new job opportunities for youth and women.”

Bahr added that CGC also provides technical support to entrepreneurs and SME owners through non-financial products in partnership with leading institutions, as well as organizing courses for them through the company’s website.

Nagla Bahr explained that the company’s portfolio, in cooperation with the Egyptian banks, provided financing of more than EGP 264bn to more than 223,000 SMEs by the end of the third quarter of 2023. More than 50% of this financing was directed to youth 26% to women, as well as 2.97% to start-ups.

The company accounted for 3.2% of GDP in 2022, in addition to supporting the state budget by more than EGP 1.1bn and providing 225,000 jobs.

It is worth noting that CGC recently won the Product Innovation of the Year Award from the Global SME Finance Forum 2023. This award recognizes CGC’s success in providing financing solutions for SMEs through its innovative program “Engz” and its modern digital platform.

CGC is the first company in Egypt entrusted with issuing guarantees with governmental and international support. Established in 1991, CGC Egypt is under the supervision of the Central Bank of Egypt. CGC participates in and reduces risks for financial institutions (banks and non-banks) and enables them to provide financing for micro, small, and medium-sized projects.