IFC partners with Al Baraka Bank to support Egyptian MSMEs

Ahram Online , Tuesday 5 Dec 2023

The International Financial Corporation (IFC), the financial arm of the World Bank, partnered with Al Baraka Bank Egypt to offer $50 million in finance for Egyptian micro, small and medium-sized enterprises (MSMEs) including women-owned businesses, according to a statement on Tuesday.

The signing ceremony. IFC.
The signing ceremony. IFC.

The IFC financing will help Al Baraka increase SME funding across the tech, transport, communications, and health sectors, among others, the statement said.

The IFC will also provide the bank with support for the development and implementation of an environmental and social (E&S) management system, enabling it to apply E&S requirements to its portfolio, which covers screening transactions against environmental and other legal and social regulations.

“We are committed to supporting our customers to address environmental and social issues, in line with international best practices,” said Hazem Hegazy, Al Baraka Bank Egypt’s CEO and vice chairman.

“With increased access to finance, MSMEs can grow their businesses, create more and better jobs, and build stronger communities. By supporting women-owned small businesses, we are not only empowering entrepreneurs and their families, but we are also investing in the future of Egypt's economy,” said Cheick-Oumar Sylla, IFC’s regional director for North Africa and the Horn of Africa.

Furthermore, the partnership aligns with the World Bank Group’s $7 billion Country Partnership Framework for Egypt, which seeks to support more and better private sector jobs in the country, among other objectives.

Since its inception, the IFC has invested a total of $7 billion in Egypt, and $3.2 billion since 2018.

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