(Ecofin Agency) – This partnership aims to reduce the financing gap faced by SMEs, stimulate economic development and contribute to reducing the gender financing gap in Egypt.
The International Finance Corporation (IFC), an organization of the World Bank Group focused on the private sector in emerging markets, announced on Sunday, November 24, 2024, the provision of a loan of $150 million to the Commercial International Bank (CIB), one of Egypt’s leading private banks.
This financing aims to strengthen the bank’s capital and support the country’s micro, small and medium enterprises (MSMEs), including those owned by women. This, in a context where MSMEs, although they represent 98% of businesses in Egypt and contribute more than 40% of the national GDP, face significant financing constraints, slowing down their growth and limiting their ability to contribute. to the economic development of the country.
“A strong financial sector is essential to Egypt’s economic development. By strengthening CIB’s capital position, IFC helps unlock business opportunities, support job creation and improve the livelihoods of Egyptians.”said Sérgio Pimenta, IFC vice-president for Africa.
The institution’s first financing for the CIB dates from 2017 with a loan of $100 million to support the private sector. The partnership between the two structures also led, in 2021, to the issuance of the first green bond from the Egyptian private sector.
Since the start of its operations in Egypt in 1975, the IFC claims to have invested and mobilized $9 billion in development projects, while managing a consulting portfolio of $24 million.
The announced financing is part of the World Bank Group’s Country Strategic Partnership (CPF) in Egypt, which aims to support job creation in the private sector. It also aligns with the objectives of the Global Small and Medium Enterprise Financing Facility (GSMEF).
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