IFC announced today a partnership with Al Baraka Bank Egypt to increase access to finance for micro-, small- and medium-sized enterprises (MSMEs) in Egypt, including women-owned businesses, helping catalyze economic activity and job creation in the country.
Despite the important contribution that MSMEs make to Egypt’s economic development, many face challenges accessing finance in the country, where the lending gap is estimated at $71 billion, hindering the sector’s growth.
IFC’s USD 50 Million Murabaha Finance to Al Baraka Bank Egypt will allow the bank to increase financing to thousands of small and medium businesses in Egypt across sectors including tech, transport, communications, health, and others, with at least 25 percent of the lending earmarked for women-owned SMEs, which often struggle to access financing.
As part of the project, IFC will also provide support to help Al Baraka Bank Egypt develop and implement an environmental and social (E&S) management system, enabling it to apply E&S requirements to its portfolio. This includes screening transactions against environmental and other legal and social regulations.
The project aligns with the World Bank Group’s Country Partnership Framework for Egypt, which seeks to support more and better private sector jobs in the country, among other objectives.
IFC has an investment portfolio in Egypt amounting to nearly $1.7 billion and an active advisory portfolio of $32 million. IFC supports Egypt’s private sector in key areas such as access to finance, fintech, climate finance, manufacturing, infrastructure and renewable energy, healthcare, and gender inclusion.
