The European Bank for Reconstruction and Development (EBRD) and the Islamic Corporation for the Development of the Private Sector (ICD ) signed a Memorandum of Understanding developing joint collaboration to support SMEs in Egypt, Jordan, Morocco and Tunisia. Under the terms of the memorandum the EBRD and the ICD will aim to establish a US$120 million investment fund, to develop and to financially support SMEs across the southern and eastern Mediterranean region (SEMED) through innovative transaction structures. Under the Fund, various financing products will be used such as equity and quasiequity.
Leveraging on their expertise, the two institutions will contribute to the SME Fund and will explore additional institutional investors and donors to provide adequate resources to support SME financing in the region and the technical assistance needed.
The EBRD President, Sir Suma Chakrabarti said: “We are delighted to launch our collaboration with ICD based on their knowledge of the region and on our successful track record in SME financing. Hildegard Gacek, the Managing Director for the SEMED region will lead the implementation of this vehicle which will improve access to finance for SMEs – the backbone of the economy and fertile ground for job creation.”
The CEO and General Manager of ICD , Mr. Khaled Al-Aboodi said on this occasion: “ ICD has put its mission statement in practice for the SME sector by engaging in innovative strategies and alliances that will serve to strengthen SMEs in the Middle East and North Africa, thereby enhancing the impact of socio-economic development. The SME Funds Program, focusing on launching and managing investment vehicles with a successful track record, is also providing technical assistance to financial institutions and investee companies. The Program is not only supporting access to finance but also favoring inclusive growth ”