ALEXBANK, a bank of the Intesa Sanpaolo Group, has signed a five-year Memorandum of Understanding (MoU) with Cassa Depositi e Prestiti S.p.A. (CDP), the Italian National Promotion Institution, to facilitate access to microcredit for Egyptian SMEs in the agricultural sector.
Bank of Alexandria signs a memorandum
The agreement supports Egypt’s Vision 2030 strategy, being also in line with the Intesa Sanpaolo Group’s commitment to pursue sustainable growth in the countries where it operates.
The signing of the MoU was witnessed by H.E. Sherif Farouk – Minister of Supply and Internal Trade of Egypt, H.E. Francesco Lollobrigida – Minister of Agriculture, Food Sovereignty and Forestry of Italy, H.E. Michele Quaroni – the Ambassador of Italy in Egypt, General Ahmed Khaled –
Governor of Alexandria, Dr. Alaa Ezz – Secretary General of the Confederation of Egyptian European Business Associations, Ahmed Al-Wakeel – President of the General Federation of Egyptian Chambers of Commerce and President of the Alexandria Chamber of Commerce , Paolo Vivona – CEO and Managing Director of ALEXBANK, Ramy Taha – Deputy CEO Retail, MSMEs & Digital Banking of ALEXBANK and Francesco Masera, Head of Business Promotion, Governance, and CIS Partnerships at CDP.
Providing financial resources
The MoU establishes a collaborative framework between ALEXBANK and CDP focusing on providing Egyptian farmers and agribusinesses with better access to financial resources and expertise.
By leveraging Italy’s agricultural know-how, this partnership seeks to drive sustainable development in Egypt’s agricultural landscape, with the aim to support Egypt’s agriculture, agribusiness, and also other strategic sectors, by exploring financing opportunities, co-financing participation, and guarantee systems.
Paolo Vivona, CEO and Managing Director of ALEXBANK, expressed his pleasure in signing the MoU with CDP. “This partnership is not just an agreement but a commitment to providing innovative and effective financial solutions aimed at improving the conditions of smallholder farmers and boosting productivity in the agricultural sector.” stated Vivona.
He added “This agreement aligns with ALEXBANK’s strategy to strengthen ties between Egypt and Italy, particularly in vital sectors, by achieving sustainable development goals through agricultural activity development. By partnering with CDP, we are committed to invest in Egypt’s agricultural sector, which contributes over 11% to GDP and employs more than 25% of the country’s workforce.”
Providing tangible tools for small businesses
“Through collaboration with ALEXBANK, we aim to provide Egyptian small and medium-sized enterprises in the agri-food sector with concrete tools to encourage access to finance, particularly in the area of microcredit,” stated Paolo Lombardo, Head of International Cooperation and Development Finance at CDP.
“The Protocol aligns with CDP’s commitment within initiatives connected to the Italian Government’s ‘Piano Mattei’ plan, creating opportunities in a strategic sector for Egypt, agriculture, while also addressing food security.”
It is worth mentioning that the MOU was signed during the “One-Day Market for Farmers and Food Products” in Alexandria, that was organized by the Alexandria Chamber of Commerce with the aim of supporting local farmers.
As part of its contribution to the event and ALEXBANK’s broader Financial Inclusion strategy, ALEXBANK offered heavily discounted pricing on microfinance and livestock/crops financing, provided POS acquiring devices free of commission for a year to encourage non-cash and card-based transactions, and introduced the Ebda2’ saving account with a 14% annual interest rate with no minimum balance requirement or account opening fees.
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