Egypt social fund in talks for $330m financing package

19 October 2016

Egypt’s Social Fund for Development (SFD) is discussions with three international financial institutions

Egypt’s Social Fund for Development (SFD) is negotiating a $330m financing package from three international financial institutions, local sources have told MEED.

It is understood that the funding package will be used to finance micro-sized projects in Egypt, said another source who is close to the deal.

SFD is seeking $50m from the OPEC Fund for International Development (OFID), $200m from the Arab Fund for Economic and Social Development (AFESD), and $80m from the European Investment Bank (EIB).

The SFD was set up to tackle socio-economic issues through a series of small projects aimed at boosting local production and employment.

US ratings agency Moody’s Investors Service recently warned that changes in the external financial support Cairo is receiving will increase future repayment obligations at a time when the country’s main focus is to improve the supply of dollars in order to assist import industries and entice foreign investors.

So far this year Egypt has received financial support from a number of GCC countries as well as various regional and international financial institutions, including a $12bn loan from the International Monetary Fund, which was agreed earlier this month.

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