The Deputy Chairperson of the National Bank of Egypt (NBE) Yehya Abou Fotouh, signed a cooperation protocol with Henri de l’Epine, managing director of Danone Dairy North East Africa, to support and develop small and micro enterprises.
This protocol is implemented through the Mayor’s project, which is based on the idea of youth owning cars equipped with a suitable variety of the company’s products. Danone is charged EGP 3,200 per month of the monthly instalment of the vehicle and its equipment.
According to Aboul Fotouh, the signing of this protocol comes within the framework of activating the strategy of the NBE in supporting and developing micro, small, and medium enterprises (MSMEs), especially, youth projects.
He added that the protocol aims to develop an integrated system of financial and technical solutions to provide the necessary funding for youth to own a car equipped to distribute the products of Danone company, providing the owner of the car with the marketing plan and geographical scope to support these youth in the promotion of these products. Danone bears 50% of the monthly instalment of the vehicle of up to EGP 3,200, which would have a direct impact on the project’s economics and make good revenue for youth.
Aboul Fotouh pointed out that the financing will be granted within the scope of any of the bank’s soft financing programs and easy and simplified procedures, ensuring the quality of service and decision-making speed through all the credit centres and branches of the bank throughout the republic.
According to Mamdouh Afia, head of the SMEs Group at the NBE, the bank’s small and medium-sized loans portfolio stood at EGP 49bn for 63,000 clients by the end of August 2018, which is planned to reach EGP 100bn by the end of 2020.
He added that 27,400 clients benefited from the initiatives of the Central Bank of Egypt (CBE). These clients were granted EGP 32.9bn of facilities in total using EGP 26bn.
According to Henri de l’Epine, the mayor’s programme was launched in early 2010, with the support of the Danone Ecological Environment Fund and Danone Egypt, with the aim of contributing to improving the health of citizens in rural communities, creating jobs for small distributors and improving the incomes of traders.
He added that with this support from the NBE, the project will now contribute to providing more opportunities for young entrepreneurs.
He noted that the protocol strengthens the company’s commitment to developing small businesses and providing support to young Egyptian entrepreneurs.
The post NBE, Danone Egypt sign cooperation protocol to support SMEs appeared first on Daily News Egypt.