EBRD supports MSM Group to boost non-extractive industries in Mongolia

The European Bank for Reconstruction and Development (EBRD) is reinforcing its commitment to Mongolia’s private sector by providing a loan of up to MNT 26.2 billion (approximately €7 million) to MSM Group, one of the country’s leading diversified businesses. The financing will support the company’s expansion and working capital needs, with a specific focus on promoting growth in non-extractive industries, a key priority for the EBRD in Mongolia.

MSM Group operates across several key sectors, including the production and sale of industrial chemicals, distribution and maintenance of vehicles and industrial equipment, and import and distribution of beverages. The new EBRD loan will be used to construct a modern storage facility, a workshop, and an automotive showroom, while also strengthening the company’s working capital base.

With vehicle imports into Mongolia surging by 67% in 2024, MSM Group’s expansion will enable the company to meet the growing demand more efficiently and provide faster, higher-quality service to its customers. This move not only aligns with the country’s increasing consumer and industrial needs but also reflects a broader economic diversification effort, reinforcing focus on the non-extractive sectors.

MSM has been a client of the EBRD since 2008, and this latest investment marks a continued partnership aimed at building a more resilient, diversified economy. To date, the EBRD has invested nearly €2.77 billion in Mongolia through 158 projects, with about 90% of that funding directed towards private-sector development.

By supporting companies like MSM Group, the EBRD is helping to stimulate sustainable growth, encourage innovation, and reduce Mongolia’s economic reliance on extractive industries, paving the way for a more balanced and inclusive economic future.