International Finance Corporation extends partnership with CIB to strengthen Egypt’s financial sector, small businesses

International Finance Corporation has announced a financing package for Egypt’s leading private sector bank, CIB, to bolster its capital position and support its commitment to micro, small, and medium-sized enterprises (MSMEs), including women-owned businesses.

The $150 million loan from IFC will enhance Egypt’s financial sector amid challenging economic conditions.

This collaboration aims to foster job creation, drive economic development, and reduce the gender financing gap in the country.

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MSMEs, which make up 98% of Egyptian businesses and contribute over 40% of GDP, often face severe funding constraints that limit their growth potential and hinder economic contributions.

Commenting on the deal, CIB CEO Hisham Ezz-Al Arab said, “We are pleased to announce the extension of our partnership with IFC, a significant step that will strengthen Egypt’s financial sector and support our capital base, allowing us to provide more support to small and medium enterprises.

This partnership reflects IFC’s belief in CIB’s commitment to fostering innovation, improving accessibility in finance, empowering entrepreneurs, and driving sustainable economic growth.

Together, we are building a resilient ecosystem that enables small businesses to thrive and contribute to the prosperity of our nation.”

“A strong financial sector is essential for Egypt’s economic development,” added Sérgio Pimenta, IFC’s Vice President for Africa. “By boosting CIB’s capital position, IFC is helping unlock opportunities for businesses, supporting job creation, and improving the livelihoods of Egyptians.”

The IFC and CIB have a longstanding partnership, which previously led to Egypt’s first private sector green bond in 2021.

This bond supported climate adaptation and energy efficiency initiatives. In 2023, the partnership developed a robust climate risk management framework.

The latest financing aligns with the World Bank Group’s Country Partnership Framework for Egypt, which seeks to create better private-sector jobs, and the Global Small and Medium Enterprises Finance Facility, aimed at accelerating financial inclusion and addressing SME financing gaps.

Since 1975, IFC has invested and mobilized $9 billion in development projects in Egypt and maintains an advisory portfolio of $24 million, focusing on fintech, climate finance, renewable energy, and gender inclusion.