EBRD and Fawry Team Up to Boost Egyptian Youth-Led Startups with £250M Fund

Mohammed Fathy

Last updated 28-04-2026

4 min

Access to finance remains a “biggest headache” for Egypt’s young founders.

EBRD and Fawry launch LE 250m facility for under-35 MSMEs.

It includes 10% “first-loss” cover and EU cash incentives.

Support extends to training, mentoring and digital capacity-building.

Aim is wider financial inclusion, jobs, and stronger private sector growth.

Access to finance is still one of the biggest headaches for young founders in Egypt. I’ve lost count of how many early-stage entrepreneurs told me that getting a first loan felt like running in circles, a bit of a faff, to be honest. So when fresh capital is earmarked specifically for youth-led businesses, it’s worth pausing and taking notice.

The European Bank for Reconstruction and Development (EBRD) has teamed up with Fawry to roll out a new financing facility worth up to LE 250 million. The funds will be channelled through Fawry MSME Finance and directed at micro, small and medium-sized enterprises run or owned by entrepreneurs under 35. The focus is not just on Cairo’s usual suspects, but also on underserved and rural areas, where access to formal credit can be painfully limited.

This move falls under the EBRD’s Youth in Business programme, and it’s not just about handing out loans. The facility comes with a first-loss risk cover of up to 10%, which helps cushion potential defaults and encourages more lending to younger founders who might otherwise be seen as higher risk. On top of that, eligible borrowers can receive European Union-funded cash incentives of up to 10% of their loan value. In simple terms, that could ease repayment pressure and lower the overall cost of borrowing, definately not a small detail for a startup watching every pound.

And believe it or not, the support goes beyond money. There’s a technical cooperation package built in, aimed at strengthening Fawry’s institutional capacity and sharpening its approach in areas like gender-responsive lending and digital transformation. Non-financial advisory services will also be available through the EBRD’s Advice for Small Businesses programme. Training, mentoring, operational guidance, the sort of support that can make a real difference when a company is trying to move from survival mode to actual growth.

Mark Davis described this as the first partnership with Fawry, referring to the fintech player as a digital leader in Egypt and signalling the beginning of broader cooperation focused on youth-led MSMEs. Fawry MSME Finance itself has been around since 2018, operating as a digital microfinance platform, while its parent company Fawry is widely recognised as one of Egypt’s largest fintech providers. That digital backbone could be key in reaching entrepreneurs outside major urban centres through its nationwide branch network.

I reckon what makes this initiative interesting is the blend of credit, grants and advisory support. Too often, funding schemes focus on just one lever. Here, the combination feels more thought through, risk-sharing, incentives and skills-building all stitched together. On the flip side, execution will be everything. Rolling out capital is one thing; making sure it lands in the hands of founders who truly need it is another matter entirely.

The programme is backed by the European Union and aims to expand financial inclusion while supporting job creation. For Arageek readers who follow Egypt’s startup scene closely, this development sits within a broader push to strengthen the private sector. In fact, Egypt’s Ministry of Finance and the EBRD have also announced a separate €10 million public-private partnership fund designed to shorten project timelines, support feasibility studies and attract more private investment into infrastructure and renewable energy.

Step by step, these pieces start to form a bigger picture. Youth entrepreneurs have energy and ideas, that part is never in doubt. What they often lack is patient capital and structured backing. If this LE 250 million facility hits the mark, it could be a much-needed boost. And for many young founders trying to get their foot in the door, that could make all the difference.

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