IFC, a member of the World Bank Group, is the world’s largest development institution focused on the private sector in emerging markets.
The funding will help bolster CIB’s ability to provide financial services to MSMEs, a sector that accounts for 98 percent of Egypt’s businesses and over 40 percent of the country's GDP.
However, the corporation said in a statement that MSMEs in the country face significant barriers to financing, which hinders their growth potential and ability to contribute fully to the economy.
Through this initiative, IFC aims to unlock greater opportunities for job creation and close the gender financing gap in Egypt, it said in statement.
The action is part of the one-day visit that Sérgio Pimenta, IFC's vice president for Africa, paid to Egypt to support the country's economic development.
Moreover, Prime Minister Mostafa Madbouly announced on Monday that the progress in the government's plan to offer Egyptian airports to the private sector, which is designed in collaboration with the IFC, will be announced soon.
"This partnership reflects IFC’s confidence in our commitment to fostering innovation, enhancing financial accessibility, empowering entrepreneurs, and driving sustainable economic growth. Together, we are building a resilient ecosystem for small businesses to thrive and contribute to the prosperity of Egypt," said CIB CEO Hisham Ezz-Al-Arab, read the text.
"A strong financial sector is essential for Egypt’s economic growth. By supporting CIB’s capital position, IFC is helping unlock new opportunities for businesses, fostering job creation, and improving the livelihoods of Egyptians," IFC's Pimenta said, the statement added.
IFC and CIB have a longstanding partnership. They have previously worked together on landmark projects, such as the issuance of Egypt’s first private-sector green bond in 2021.
This green bond supported climate resilience initiatives and energy efficiency projects while also contributing to the development of a robust climate risk management framework at the CIB.
The $150 million financing aligns with the World Bank Group’s Country Partnership Framework (CPF) for Egypt, which prioritizes private sector job creation and inclusive economic growth.
It is also part of the Global Small and Medium Enterprises Finance Facility (GSMEF), an IFC initiative to reduce the financing gap faced by underserved SMEs globally.
Since its inception in 1975, IFC has invested and mobilized over $9 billion in development projects in Egypt.
Its advisory portfolio in the country is $24 million, focusing on sectors such as fintech, climate finance, manufacturing, renewable energy, healthcare, and gender equality.
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