The International Finance Corporation (IFC), a member of the World Bank Group, has announced two new financing agreements totaling USD 60 million to enhance access to finance for Micro, Small, and Medium-sized Enterprises (MSMEs) in Egypt. The partnerships with Suez Canal Bank and Attijariwafa Bank Egypt are designed to address critical funding gaps, particularly for women-owned businesses and those in underserved regions.
MSMEs are a cornerstone of the Egyptian economy, contributing over a third of the nation’s GDP and employing nearly 40 percent of the workforce. This strategic injection of capital aims to unlock their growth potential, foster job creation, and promote inclusive, sustainable economic development across the country.
Suez Canal Bank Secures USD 50M Package
The IFC has committed a USD 50 million financing package to Suez Canal Bank to expand its lending capacity to MSMEs. A significant portion of this loan—a quarter—is specifically earmarked for businesses owned by women, directly addressing Egypt’s gender financing gap.
In addition to the funding, the IFC will provide advisory support to help Suez Canal Bank develop and implement an environmental and social management system (ESMS) that aligns with international standards.
“By partnering with Suez Canal Bank, IFC is expanding lending to MSMEs, supporting thousands of Egyptian entrepreneurs grow their businesses,” stated Ethiopis Tafara, IFC’s Vice President for Africa.
Attijariwafa Bank Partnership Focuses on Risk Sharing
In a separate agreement, the IFC has signed a USD 10 million local-currency risk-sharing facility with Attijariwafa Bank Egypt. Through this facility, the IFC will guarantee up to 50 percent of the credit risk on a new SME loan portfolio from the bank, valued at up to USD 20 million equivalent.
This initiative is projected to help Attijariwafa Bank Egypt grow its SME loan portfolio by over 50% in the next five years. The agreement includes targets to direct at least 25% of the loans to women-owned SMEs and 50% to businesses located in vulnerable communities. The facility is also supported by a USD 2.5 million investment from the blended finance facility under the PROSPECTS Partnership, a program led by the Government of the Netherlands.
“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,” said Mr. Mouawia Essekelli, CEO & Managing Director of Attijariwafa bank.
About The International Finance Corporation (IFC)
The International Finance Corporation (IFC) is a member of the World Bank Group and is the largest global development institution focused on the private sector in emerging markets. It works in more than 100 countries, using its capital, expertise, and influence to create markets and opportunities in developing nations.
Source: Waya
