The World Bank’s (WB’s) Board of Executive Directors has approved a USD 300 million loan that aims to support an Egyptian government program to improve access to finance for micro- and small entrepreneurs in the country. The loan is part of WB’s Enhancing Access to Finance for Micro and Small Enterprises (MSE) Project, the first WB-funded project to support MSEs in the Middle East and North Africa (MENA) region, according to the daily newspaper The Financial.

The project has two main foci: providing a line of credit for microenterprises via banks, nonprofit organizations and microfinance institutions (MFIs); and providing a line of credit for small enterprises through direct bank lending, bank linkages with non-governmental organizations and potential small enterprise finance companies.

By Stefanie Rubin, Research Associate

About the World Bank:

Established in 1944, the World Bank is located in Washington, DC, and has over 100 offices worldwide. It is comprised of two development institutions owned by 186 member countries: the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA). WB provides low-interest loans and interest-free credits and grants to developing countries for investments in education, health, public administration, infrastructure, financial and private sector development, agriculture, and environmental and natural resource management. According to its website, “poverty reduction through an inclusive and sustainable globalization remains the overarching goal of its work.”

Additional Resources:

Source Article: The Financial: “World Bank Supports Micro and Small Enterprises in Egypt to Spur Economic Growth and Jobs,” http://finchannel.com/news_flash/Banks/60005_World_Bank_Supports_Micro_and_Small_Enterprises_in_Egypt_to_Spur_Economic_Growth_and_Jobs/

MicroCapital Universe: The World Bank: http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=The+World+Bank+%28WB%29