Today, the International Finance Corporation announced a financing package for Commercial International Bank – Egypt (CIB) to support small, medium and micro enterprises, especially women-owned.
IFC’s US$150 million loan to CIB, the third largest bank in Egypt, will strengthen Egypt’s financial sector.
The partnership will also work to enhance job creation, promote economic development, and help reduce the gender financing gap in Egypt.
While small, medium and micro enterprises make up 98% of Egyptian companies and contribute more than 40% of the country’s GDP, they face significant financing constraints.
The financing gap, estimated at $46 billion, significantly limits its growth potential and hampers its ability to fully realize its economic contributions.
“A strong financial sector is essential for Egypt’s economic development and by strengthening CIB’s capital position, IFC is helping to unlock opportunities for businesses, create jobs, and improve the livelihoods of Egyptians,” said Sergio Pimenta, IFC Vice President for Africa.
Pimienta added that IFC has a long-term strategic partnership with the Commercial International Bank, as it helped issue Egypt’s first private sector green bond in 2021 – which supported climate adaptation and management systems, energy efficiency, and green building projects – in addition to developing and implementing A strong climate risk management framework in 2023.
Hisham Ezz El Arab, CEO and Executive Board Member of Commercial International Bank (CIB), said: “We are pleased to announce the extension of our partnership with the International Finance Corporation, which is an important step that will strengthen the financial sector in Egypt and support our capital base, allowing us to provide more Support for small and medium enterprises.
Hisham Ezz Al-Arab added that this partnership reflects the International Finance Corporation’s belief in the International Commercial Bank’s commitment to promoting innovation, improving access to finance, empowering entrepreneurs, and driving sustainable economic growth.
The financing announced today is aligned with the World Bank Group’s Country Partnership Framework for Egypt, which seeks to better support more private sector jobs.
It is also aligned with the Global Small and Medium Enterprise Finance Facility (GSMEF), an IFC initiative aimed at accelerating financial inclusion and reducing the financing gap faced by disadvantaged SMEs.
Since beginning its operations in Egypt in 1975, IFC has invested and mobilized $9 billion in development projects in the country and has an advisory portfolio worth $25 million.
IFC’s support to the private sector in Egypt focuses on fintech, climate finance, manufacturing, infrastructure, renewable energy, healthcare, gender, and other sectors.
