Cairo – Mubasher: Commercial International Bank-Egypt (CIB) and International Finance Corporation (IFC) extended a partnership to strengthen the bank's capital position through a $150 million loan.
IFC will help CIB to support micro, small, and medium-sized enterprises (MSMEs) in the Arab Republic, including women-owned MSMEs.
This partnership will foster job creation, boost economic development, and help reduce the gender financing gap in Egypt.
While MSMEs comprise 98% of Egyptian businesses and contribute to more than 40% of the country's gross domestic product (GDP), they face substantial funding constraints, which significantly limit their growth potential and hinder their ability to fully realise their economic contributions.
Hisham Ezz-Al Arab, CEO of CIB, said: "We are pleased to announce the extension of our partnership with the IFC, a significant step that will strengthen Egypt's financial sector and will support our capital base, allowing us to provide more support to small and medium enterprises."
Sérgio Pimenta, IFC's Vice President for Africa, commented: "By boosting CIB's capital position, IFC is helping unlock opportunities for businesses, supporting job creation, and improving the livelihoods of Egyptians."
The financing aligns with the World Bank Group's Country Partnership Framework (CPF) for Egypt, which seeks to support more and better private sector jobs. It also aligns with the Global Small and Medium Enterprises Finance Facility (GSMEF).
Since beginning its operations in Egypt in 1975, IFC has invested and mobilised $9 billion in development projects and has an advisory portfolio of $24 million.
As of 30 September 2024, CIB posted 89% year-on-year (YoY) higher net profits at EGP 42.34 billion, compared to EGP 22.40 billion.
