IFC’s $150 m loan for CIB to support MSMEs in Egypt

24 / 11 / 2024

By Marwa Nassar - -

IFC announced a financing package for Egypt’s leading private sector bank, CIB, to strengthen the bank’s capital position and help it deliver on its commitment to support micro, small, and medium-sized enterprises (MSMEs) in the country, including women-owned MSMEs.

IFC’s $150 million loan for CIB will strengthen the country’s financial sector amid challenging macroeconomic conditions. This partnership will foster job creation, boost economic development, and help reduce the gender financing gap in Egypt.

While MSMEs comprise 98% of Egyptian businesses and contribute to more than 40% of the country’s GDP, they face substantial funding constraints – which significantly limit their growth potential and hinders their ability to fully realize their economic contributions.

Commenting on the transaction, Hisham Ezz-Al Arab, Chief Executive Officer (CEO) & Executive Board Member at CIB, said “We are pleased to announce the extension of our partnership with the IFC, a significant step that will strengthen Egypt’s financial sector and will support our capital base, allowing us to provide more support to small and medium enterprises. This partnership reflects IFC’s belief in CIB’s commitment to fostering innovation, improving accessibility in finance, empowering entrepreneurs, and driving sustainable economic growth. Together, we are building a resilient ecosystem that enables small businesses to thrive and contribute to the prosperity of our nation.”

“A strong financial sector is essential for Egypt’s economic development,” said Sérgio Pimenta, IFC’s Vice President for Africa. “By boosting CIB’s capital position, IFC is helping unlock opportunities for businesses, supporting job creation, and improving the livelihoods of Egyptians.”

IFC has a long-standing strategic partnership with CIB, helping issue Egypt’s first private sector green bond in 2021 – which supported climate adaptation, management systems, energy efficiency, green building projects, and developing and implementing its robust climate risk management framework in 2023.

The financing announced today aligns with the World Bank Group’s Country Partnership Framework (CPF) for Egypt, which seeks to support more and better private sector jobs. It also aligns with the Global Small and Medium Enterprises Finance Facility (GSMEF). This IFC initiative aims to accelerate financial inclusion and reduce the financing gap faced by underserved SMEs.