• IFC’s investments in Egypt’s financial sector reached USD 1.5B and aim to hit USD 2B, covering 15 financial institutions.
• Focused on SMEs, IFC provides local currency loans, securitization, and support for microfinance and leasing institutions to expand financing.
• IFC highlights Egypt’s financial sector potential, aiming to reach underserved segments and strengthen the economy through targeted SME support.

IFC

The International Finance Corporation’s (IFC) investments in Egypt’s financial sector have reached USD 1.5 billion. Furthermore, it aims for these investments to reach USD 2 billion during the current fiscal year. It also aims to reach 15 financial institutions mostly banks and non-banking financial institutions such as leasing and microfinance institutions.

This is according to Gokhan Kont, Investment Manager, North Africa & the Horn of Africa at IFC in an interview with Asharq.

Financing 

In the interview, Kont also notes that the IFC has an established program to support small financial institutions. This includes institutions such as leasing companies and microfinance institutions. It is also working with local partners to invest in local currency securitization. It also aims to provide local currency loans to smaller companies aiming to reach different sectors of the economy. 

He points out that large banks already provide financing to mid and large corporations. However, 90% of employment opportunities are generated by SMEs, thus the IFC’s focus is to provide and facilitate more financing for this segment.

In the interview, he also points out the potential of the financial and private sector of Egypt. This is because the financial sector is the backbone of the economy and provides a platform to reach the underserved segments.

He added that the IFC works on providing financing for small and medium-sized enterprises (SMEs) and plans to invest in securitization operations and offer loans in the local currency to this category of companies.