Laos-Egypt Study Tour for MSME Finance

In May 2025, GOPA AFC organized a study tour to Egypt for a delegation from the newly established Laos Credit Guarantee Company (LCGC), accompanied by representatives from the Bank of Lao PDR (BOL), the Ministry of Finance and the MSME promotion Agency (MSMEPA) under the Ministry of Industry and Commerce. The main objective of the tour was to facilitate peer learning by engaging with counterpart organizations and exploring best practices in expanding access to finance for micro, small, and medium-sized enterprises (MSMEs).

GOPA AFC is currently providing technical assistance to the Laos Credit Guarantee Company under a World Bank-funded initiative led by our long-term affiliated expert Mr. Indrajith Wejisiriwardana. Egypt was selected as the destination for the study tour due to the strong reputation of the Egyptian Credit Guarantee Company (CGC), which is widely regarded as a benchmark for similar institutions in emerging markets. The choice was further supported by Egypt’s well-developed MSME finance ecosystem, which has advanced significantly in recent years thanks to a series of policy reforms led by the Central Bank of Egypt (CBE).

Additionally, our longstanding presence in Egypt—through the implementation of multiple technical assistance projects—ensured seamless preparation and coordination of the tour. We were able to leverage our extensive local network and deep institutional relationships to deliver a rich and impactful learning experience for the delegation.

The tour kicked off with a presentation by Mr. Mostafa Mounir, Head of MSME and Entrepreneurship at the CBE, who outlined the bank’s policies and instruments designed to support MSME access to finance. This was followed by a full-day workshop at CGC, where various departments from the company shared their best practices in terms of risk, financial, IT, HR management and explained their different guarantee products, their approach for issuance and management of guarantees and claims. A highlight of the day was a presentation by Ms. Nagla Bahr, CGC’s Executive board member, who provided a comprehensive overview of the organization’s history, its recent restructuring, and its strategic vision for sustainable growth.

A key takeaway from the workshop was the crucial role of government support—particularly from the Central Bank—in the success of national credit guarantee schemes. The Central Bank of Egypt’s acquisition of a stake in the Credit Guarantee Company in 2017 marked a significant turning point, greatly enhancing the company’s credibility. With the CBE’s backing, banks showed increased participation in the credit guarantee scheme, driven largely by the capital relief benefits recognized by the CBE. This was especially important as banks began implementing IFRS 9, which allowed them to reduce provisioning requirements. As a result, capital was freed up, enabling banks to expand lending to SMEs and improve their profitability.

In the following days, the delegation met with the management of I-Score, Egypt’s credit bureau, who shared insights into how credit data and alternative scoring models are used to support MSME financing, particularly in high-risk sectors like agriculture and manufacturing. The team also visited the Financial Regulatory Authority, which provided an overview of its role in supervising non-bank financial institutions and promoting inclusive finance through enabling policies. The distinction between credit insurance and credit guarantees was also clarified.

Another important stop was the MSME Development Agency (MSMEDA), where the delegation learned about the agency’s catalytic role in supporting MSME finance. GOPA AFC is currently providing technical assistance to MSMEDA, helping manage a credit line from the German Development Bank (KfW) and designing an incentive grant scheme co-financed by the EU for innovative SMEs, startups, and microfinance NGOs.

Toward the end of the tour, the delegation met with several financial institutions that partner with CGC. This included the Industrial Development Bank – Egypt’s main government-owned bank to support the manufacturing sector, the Commercial International Bank - Egypt’s largest privately-owned Bank and Banque du Caire - one of Egypt’s leading national commercial banks and one of the pioneers in the MSME segment. These institutions shared their motivations for using CGC guarantees and expressed high satisfaction with the guarantee issuance and claims processes. Many noted that CGC’s support enabled them to enter market segments they would otherwise consider too risky.

Wong Keet Loong, CEO of the Laos Credit Guarantee Company, shared his reflections at the conclusion of the study tour: “This tour has been incredibly insightful. We gained a deep understanding of the key success factors behind the Egyptian Credit Guarantee Company and the broader enablers of Egypt’s MSME business environment. We leave with a very positive impression of Egypt’s mature MSME finance ecosystem and a wealth of lessons that will help us further develop the Laos Credit Guarantee Company into a key enabler within our own MSME landscape. We sincerely thank GOPA AFC for the excellent organization of the study tour and the rich, well-curated program they prepared.”

Finally, Jakob Lutz, Director at GOPA AFC commented: “It was great to see the active interactions between the Lao delegation members and Egyptian counterparts – we will make sure to put an even stronger focus on facilitating such South-to-South exchanges in the future”.

For more information, please contact celine.serhal@gopa.eu.