CIB's partnership with IFC to support climate risk management

Rania Al-Mashat Minister of International Cooperation of Egypt, Sergio Pimenta, IFC's Regional Vice President for Africa witnessed signing a partnership between IFC and Commercial International Bank.

This came to enhance the climate risk management framework, in addition to an agreement with Mediterrania Capital to invest 25 million euros in Mediterrania 4 Fund to support the growth and development of medium-sized enterprises in North Africa.

This comes within the framework of the visit of Vice-President of IFC to Egypt to enhance discussions with the private sector, under the umbrella of the state's vision to increase private sector participation in sustainable development, and as a continuation to diversify of corporate and investments finance portfolios in Egypt.

Dr.Rania Al-Mashat, said that the partnership with IFC is necessary in light of  Egypt's efforts to encourage investment, especially enhancing participation of the private sector in the country's development efforts.

Al-Mashat explained that the partnership aims to help SMEs, as well as emerging companies to contribute to economic growth, according to the partnership with the World Bank Group.

The advisory project is set to enhance guarantee of facing any financial risks related to climate action within the bank's finance portfolio

Also she stated that the partnership is to encourage innovative solutions to finance mitigation and adaptation projects with the repercussions of climate change, in line with National Climate Change strategy 2050 and the results of COP27 climate conference.

The Minister of International Cooperation said that Egypt was a pioneer in issuing the first green bonds in the Middle East and North Africa in 2020, which motivated the private sector to move forward in this topic.

Al-Mashat noted that IFC financed issuance of the first green bonds for the private sector, at a value of $100 mn, in 2021, to expand financing of green environmentally friendly projects.

IFC is investing 25 million euros in  Mediterrania Capital 4 Fund, along with an additional 20 million euros in syndicated  investments, to support private sector growth in Africa in vital sectors .

Aldo aims to direct investments of 350 million euros in investments to medium-sized enterprises in healthcare, retail, financial services and manufacturing sectors to develop Africa Economy, paying special attention to companies led by women to enhance their access to economic opportunities.

Moreover, expanding innovative financing and private sector investments, in line with the effective steps taken by the state towards encouraging development efforts, private sector participation and partnership between the government and private sectors, to support comprehensive and sustainable growth.

It is worth noting investment portfolio amounted to $1.5 bn in the financial market, agribusiness finance, education, health, industrial sector, Mortgage, tourism, retail, startups, and other sectors.