• IFC commits USD 60M to boost MSME financing in Egypt through new partnerships with Suez Canal Bank and Attijariwafa Bank.
• The funding targets underserved areas and women-owned businesses, aiming to create jobs and narrow Egypt’s gender financing gap.
• These deals aim to expand SME lending by over 50% in five years and strengthen inclusive, sustainable economic growth.

IFC

The International Finance Corporation (IFC), a member of the World Bank Group, announced two financing agreements worth USD 60 million to support SMEs in Egypt.

With these financing agreements, it aims to tackle the funding constraints MSMEs face in Egypt. MSMEs are essential drivers of employment and inclusive growth in Egypt. They contribute to more than a third of the country’s GDP and employ almost 40 percent of the workforce. Thus, these agreements aim to foster MSME growth potential and facilitate them to reach their full economic potential.

Suez Canal Bank

It announced a USD 50 million financing package for the Suez Canal Bank to support lending to MSMEs in Egypt. This is with a particular focus in underserved areas with a quarter of the loan earmarked for women-owned businesses. Additionally, this partnership seeks to generate thousands of jobs, boost economic growth, and reduce the gender financing gap.

The IFC will also support the bank in developing and implementing an environmental and social management system (ESMS) that meets international E&S standards.

“By partnering with Suez Canal Bank, IFC is expanding lending to MSMEs, supporting thousands of Egyptian entrepreneurs grow their businesses.”

Ethiopis Tafara, IFC’s Vice President for Africa. 

Attijariwafa Bank 

The IFC also signed a USD 10 million local-currency risk-sharing facility with Attijariwafa Bank Egypt to enhance access to finance for SMEs. Under this agreement, IFC will cover up to 50 percent of the credit risk on a new Attijariwafa bank Egypt SME loan portfolio. This loan portfolio will be up to USD 20 million equivalent in Egyptian pounds (EGP 100M).

“Through this risk-sharing facility, Attijariwafa bank Egypt will further enhance access to finance for SMEs, reinforcing their role in fostering a resilient, green, and inclusive economy.”

Mr. Mouawia Essekelli, CEO & Managing Director of Attijariwafa bank.

The facility seeks to aid Attijariwafa bank Egypt expand its SME loan portfolio by more than 50% over the next 5 years. This is with at least 25% of loans earmarked for women-owned businesses, and 50% directed to SMEs in vulnerable communities.

This initiative is supported by a USD 2.5 million investment from the blended finance facility under the Prospects Partnership (PROSPECTS). This is a program spearheaded by the Government of the Netherlands.