The International Finance Corporation (IFC) has announced a $150m financing package for Egypt’s Commercial International Bank (CIB) to support micro, small, and medium enterprises (MSMEs), with a particular focus on women-owned businesses.
The loan aims to bolster Egypt’s financial sector, foster job creation, drive economic development, and address the gender financing gap. MSMEs represent 98% of Egyptian businesses and contribute over 40% of the country’s GDP, yet they face significant funding challenges. An estimated $46bn financing gap severely limits their growth potential, restricting their ability to fully contribute to the economy.
“A strong financial sector is critical to Egypt’s economic development. By strengthening CIB’s capital position, IFC helps unlock opportunities for businesses, create jobs, and improve livelihoods for Egyptians,” said Sergio Pimenta, IFC Vice President for Africa.
Pimenta highlighted IFC’s longstanding strategic partnership with CIB. In 2021, the IFC supported Egypt’s first private sector green bond issuance, which financed climate adaptation, energy efficiency, and green building projects. In 2023, it also worked with CIB to develop a comprehensive climate risk management framework.
Hisham Ezz Al-Arab, CEO and Executive Board Member of CIB, expressed enthusiasm for the partnership, stating, “We are delighted to announce this important step, which will strengthen Egypt’s financial sector, support our capital base, and enable us to provide more comprehensive support to MSMEs.”
Related Posts
Ezz Al-Arab emphasized that the partnership reflects IFC’s confidence in CIB’s commitment to innovation, financial inclusion, entrepreneurship empowerment, and sustainable economic growth.
The funding aligns with the World Bank Group’s Egypt Country Partnership Framework, which prioritizes private-sector job creation. It also complements IFC’s Global SME Finance Facility (GSMEF), aimed at accelerating financial inclusion and addressing the funding gap for underserved MSMEs.
Since its launch in Egypt in 1975, IFC has invested and mobilized $9 billion in development projects and currently maintains an advisory portfolio worth $25 million.
IFC’s support for Egypt’s private sector focuses on critical areas such as fintech, climate finance, manufacturing, infrastructure, renewable energy, healthcare, gender equality, and more.
Source: dailynewsegypt.com
