AMAN, Bokra and Erada Join Venture Debt Egypt Pilot

AMAN, Bokra, and Erada have joined the GIZ-backed Scale It Forward initiative to pilot venture debt Egypt for high-growth scaleups and expand alternatives to equity financing.

The three financial institutions signed framework agreements with enpact under Scale It Forward, an initiative co-developed by GIZ Egypt and enpact to support the adoption of this financing model. They are the program’s first financial institution partners.

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The initiative aims to connect financial institutions with high-growth companies while helping lenders design and test products suited to scaleups. Venture debt gives eligible companies access to capital without requiring founders to give up additional ownership.

Expanding Venture Debt Egypt

Scale It Forward was created to expand financing options for Egyptian scaleups beyond traditional equity funding. The program will also help financial institutions build the capacity to assess and structure debt for businesses that may not fit conventional lending models.

Under the pilot, participating institutions will select scaleups from a pipeline of eligible businesses. Selected companies will receive support to prepare for financing, including guidance on financial planning, governance, cash-flow management, and debt readiness.

The program is targeting 30 Egyptian scaleups and five financial institutions. Each participating lender is expected to select six businesses for the pilot.

How the Pilot Program Works

Participating financial institutions will provide venture debt starting at the equivalent of €5,000 per business. Each debt facility will be matched with €5,000 in non-repayable financial support through the program.

This structure is intended to help reduce the risk for participating lenders. It also gives selected scaleups additional resources as they prepare to take on debt.

The program is aimed at businesses that have moved beyond the earliest startup stage. These companies need growth capital but may face challenges accessing traditional bank financing.

Strategic Benefits for the Market

For Egyptian startups, this instrument could provide another way to fund expansion without repeated equity raises and the dilution that comes with them.

For lenders, the pilot provides an opportunity to develop risk-assessment models for high-growth companies. “Today's signing event represents the official launch of the Scale It Forward programme,” said Rawan Bassam, Country Manager of enpact in Egypt.

She said the participation of AMAN, Erada Finance, and Bokra marks a step toward making this a practical financing option for local firms.

Sherif Younis, Head of Project Job Partnerships and SME Promotion in Egypt at GIZ, said the partnerships would help expand access while strengthening the financial sector’s ability to deploy the instrument.

Scale It Forward is implemented by GIZ Egypt and enpact under Invest for Jobs, the Special Initiative “Decent Work for a Just Transition,” on behalf of Germany’s Federal Ministry for Economic Cooperation and Development.

Why It Matters to MENA

Egypt’s venture ecosystem has long relied heavily on equity financing, making access to alternative growth capital an important issue for scaleups. The pilot is significant because it tests this model from both sides of the market.

If the model proves viable, it could give Egyptian founders more financing choices. It may also help deepen the wider MENA growth-financing ecosystem beyond traditional venture capital.