UB Services

Partnership with The Social Fund for Development

28/03/2017

28 03 2017

Funded by the World Bank to develop the SMEs sector

The United Bank and the Social Fund for Development

Signed the sixth contract worth 120 million pounds, bringing the total funding to 395 million pounds

 

Ashraf El Kady – Chairman of The United Bank

  •    The new contract comes as a confirmation of the strong partnership with the Social Fund for Development.
  •    Total value of the five contracts is 395 million pounds.
  •    Enhancing the role of the SMEs sector in the sustainable development plans of the Egyptian state according to the vision of 2030.
  •    Funding is available to customers in accordance with the terms and conditions of grants with conventional Shariah-compliant financing systems.

 

The sixth contract of the series of cooperation and fruitful cooperation agreements between The United Bank and the Social Fund for Development was signed today with a total value of LE 120 million. That makes the total amount of funds to the agreements to 395 million Egyptian pounds.

 

In order to maximize the contribution of the SMEs sector to the sustainable development plans in accordance with the vision of 2030. Through the expansion of grants and the provision of technical support to the owners of small and medium enterprises, which contributes to improving the economic level of the citizen and creating new job opportunities to reduce unemployment Which reached more than 12.4% according to the latest reports.

 

The contract was signed by Mr. Ashraf El Kady, Chairman of The United Bank and Mrs. Nevine Gamea, Secretary General of the Social Fund for Development. In the presence of Mr. Farag Abdel Hamid, Deputy Chairman of The United Bank, senior representatives of The United Bank and the Social Fund for Development and elite of media men and the press.

 

The new Contract

The new contract stipulates that the Social Fund for Development (SFD) will grant The United Bank a total financing of 120 million pounds for a period of five years with funding from the World Bank. The total amount of funding granted by the Social Fund for Development to the bank amounts to LE 395 million.

 

These grants are allocated to finance small projects, whether new or already existing, in various industrial, service or commercial activities throughout the Republic. For the purpose of purchasing machinery, as well as financing working capital and financing project equipment.

 

This is expected to be part of the new contract, the implementation of about 250 small funding. That is allowing more than 2750 jobs for the owners of small factories and workers.

 

The previous fruitful cooperation between The United Bank and the Social Fund for Development

It is worth mentioning that this contract is a continuation of the fruitful cooperation efforts between The United Bank and the Social Fund for Development, which started in 2012 and has continued until now. Whereas of last year 2016 five contracts for the development of projects were concluded with a total amount of 275 million pounds. In addition to three contracts to finance small projects in accordance with Sharia-compliant formulas totaling 150 million pounds. This is in contrast to the sixth decade, which we are witnessing today.

 

More than 1,400 funds have been implemented with traditional financing systems. As well as formulas compatible with the provisions of Sharia. This contributed to the availability of some 8,000 special opportunity of youth employment.

 

Nevine Gamea - Secretary General of the Social Fund for Development (SFD) commented on the signing of the agreement - said that she was happy with this new contract. The United Bank is one of the most important partners of SFD in its efforts and long and continuous contributions to support the sustainable development process of the Egyptian society as a whole.

 

She added that the previous agreements contributed to adding a new dimension to the nature of funding for the Social Fund for Development in terms of the nature of customers and their classification and geographical distribution in the provinces. Where it contributed through the 51 branches of The United Bank scattered in all governorates of the Republic to access funds for a larger public base.

 

She added that the SFD welcomes all means of cooperation with all State institutions and civil society to support the SME sector and sustainable community development plans. This promising sector will play a strategic and effective role in the current and future phase of building Egypt.

 

Nevine Gamea said that the Social Fund for Development aims to establish agricultural and animal development projects. In addition to its role in granting funding, a number of non-financial services are offered to customers including: Models for the feasibility study of a number of successful projects - Training opportunities - Organizing exhibitions - Contributing to the completion of all logistical procedures of papers, licenses and national number. Through service complexes spread in a number of governorates.

 

She pointed out that The United Bank is one of the financial institutions that was able to build an institutional entity and an integrated system for the sector of small and medium enterprises. This system has specialized in financial and technical support for important agricultural, productive, service and environmental projects.

 

Commenting on the policy of The United Bank to maximize the performance of the SMEs sector in the national economy, Ashraf El-Kady, Chairman of The United Bank, said that the general strategy of The United Bank was based on deepening its role as a local bank specializing in providing financial and technical support to the Egyptian and to build a strong economy capable of leading economic development.

 

The United Bank has assisted in the implementation of its policy several factors, including: spread branches at the level of the Arab Republic of Egypt and in strategic places based on agricultural activity - industrial - service - and commercial. The number of branches reached 51 branches covering most of the Republic.

 

The initiative of the Central Bank of Egypt

Ashraf El Kady praised the initiative of The Central Bank of Egypt and the State to allocate 200 billion pounds to the sector of small and medium enterprises. As well as the initiative of the President of the Republic last week to allocate 250 million pounds to empower women through the introduction and establishment of small and micro enterprises. All state institutions and civil society must cooperate to develop smart solutions to overcome the obstacles facing the SME sector.

He said that investment opportunities are very promising in Egypt, which should be based on studies and maps set by the government according to the needs of the Egyptian economy in order to maximize the value added to develop the Egyptian economy in the right direction.