Kredit secures $18 million to boost financing for SMEs in Egypt

Timilehin Adejumobi -
Key Points
  • Kredit secures EGP875 million ($18 million) financing from nine financial institutions to bolster Egypt’s small and medium enterprise (SME) sector.
  • The funding will support key growth areas, including manufacturing, food production, renewable energy, and export-oriented businesses utilizing local resources.
  • GB Corp. reports a 78.4% revenue increase, reaching EGP19.2 billion ($39.5 million) in the first half of 2024, reflecting strong market performance.

Kredit, which operates under the umbrella of GB Corp, a conglomerate controlled by the family of late Egyptian automotive magnate Raouf Ghabbour—has successfully secured EGP 875 million ($18 million) in financing from nine prominent financial institutions.

This funding is set to enhance Kredit's role within Egypt's expanding small and medium enterprise (SME) ecosystem.

Alignment with national initiatives

This strategic financing underscores Kredit's commitment to advancing financial inclusion and supporting the vital SME sector, which the Egyptian government recognizes as essential for job creation and economic development.

As Kredit expands, it aims to complement these national efforts by providing crucial capital support to this fundamental segment of Egypt's economy.

Kredit CEO Ahmed Emam expressed confidence in the banking sector's support, stating, "This latest round of bank facilities reflects the banking sector’s rising confidence in our approach."

Since its inception, Kredit has targeted small and medium-sized enterprises (SMEs), using specialized expertise to meet their unique needs.

This strategic focus, along with strong portfolio management, establishes Kredit as a leading financial service provider under the GB Capital umbrella.

The newly secured funding will be directed towards key growth sectors, including manufacturing, food production, renewable energy, and export-oriented businesses that utilize local resources.

The new facilities will finance various applications, including capital expansion projects, export activities, transportation, and heavy equipment purchases.

GB Corp. achieves significant revenue surge

GB Corp., established in 1985 by Raouf Ghabbour, is a key player in the automotive sector in the Middle East and North Africa, operating through several subsidiaries. The Ghabbour family retains a controlling 63.4 percent stake in the corporation.

In its latest earnings report, GB Corp. noted a remarkable 78.4 percent increase in revenues, reaching EGP19.2 billion ($39.5 million) for the first half of 2024. 

GB Capital has secured a promotion and underwriting license from Egypt’s Financial Regulatory Authority (FRA), further enhancing its potential for growth in the financial services sector.