The International Finance Corporation (IFC) announced a $150 million financing package for Egypt’s Commercial International Bank (CIB) on Sunday. This move aims to strengthen CIB’s capital base and enhance its ability to support micro, small, and medium-sized enterprises (MSMEs) across Egypt, including those owned by women.
The funding aims to bolster CIB’s capacity to serve MSMEs, which are the backbone of Egypt’s economy, representing 98% of the country’s businesses and contributing over 40% of its GDP. However, despite their importance, MSMEs face significant barriers to financing, limiting their growth and hindering their full contribution to the economy.
“This partnership reflects IFC’s confidence in Egypt’s commitment to fostering innovation, enhancing financial accessibility, empowering entrepreneurs, and driving sustainable economic growth,” said Hisham Ezz-Al-Arab, CEO of CIB. “Together, we are building a resilient ecosystem for small businesses to thrive and contribute to the prosperity of Egypt.”
The financing is part of a broader strategy to unlock new opportunities for job creation and close the gender financing gap, as IFC aims to promote inclusive economic growth. This announcement came during a one-day visit by Sérgio Pimenta, IFC’s vice president for Africa, who praised the Egyptian government’s efforts to strengthen the country’s economic development.
Further, the Egyptian Prime Minister declared the Egyptian government’s upcoming plan to privatize airports, in collaboration with the IFC.
This green bond helped finance climate resilience and energy efficiency initiatives while establishing a robust climate risk management framework at CIB.
The $150 million package aligns with the World Bank Group’s Country Partnership Framework (CPF) for Egypt, which prioritizes private sector job creation and inclusive economic growth. It is also a part of the Global Small and Medium Enterprises Finance Facility (GSMEF), an IFC initiative designed to address the global financing gap faced by underserved SMEs.
