ALEXBANK Gets €21M CDP Guarantee for Egypt Farm Loans

In Short

• ALEXBANK and Italy’s CDP signed a €21 million guarantee agreement on September 3, 2026.
• The deal sits under the EU-backed TERRA program and targets Egyptian agricultural microenterprises.
• It is expected to unlock up to €30 million in new financing for small farmers.
• The guarantee can cover up to 70% of losses on the loan portfolio.

What Happened: ALEXBANK TERRA Guarantee For Egyptian Small Farmers

ALEXBANK and Italy’s CDP signed a €21 million guarantee agreement in Cairo. The agreement is part of the TERRA program, short for Transforming and Empowering Resilient and Responsible Agribusiness.

A guarantee is a risk-sharing tool, it acts like a safety net for a lender. If some borrowers cannot repay, the guarantee covers part of the losses. In this case, the CDP guarantee is fully counter-guaranteed by the European Union, meaning the EU ultimately backs the guarantee.

The structure is designed to support a loan portfolio of up to €30 million for Egypt’s agro-food sector microenterprises. CDP said the focus is on smaller agricultural businesses, especially smallholder farmers.

CDP and ALEXBANK signed the deal during the Italy-Egypt Business Forum, with senior government officials from both countries present.

Why It Matters: Agricultural Finance and Credit Access in Egypt

Banks often see small farmers as high risk because incomes can be seasonal and climate shocks can hit yields. By covering up to 70% of losses, the TERRA guarantee can make it easier for ALEXBANK to lend, and to lend on better terms.

For Egypt’s agricultural SMEs and microenterprises, that can mean more working capital, which is short-term cash used to buy inputs like seeds and fertiliser, pay labour, and handle storage and transport.

For the wider ecosystem, this deal shows how EU-backed guarantees are being used to increase private-sector lending in Africa’s agrifood value chains. It also signals continued alignment between European development finance and regional priorities like resilience in food systems.