IFC Loans Banque Misr $234 Mn to Finance Small and Medium-sized Projects

International Finance Corporation announced today, through its official website, a partnership with Banque Misr to increase financing opportunities for micro, small, and medium-sized projects owned by the private sector, including those owned by women, small and medium-sized enterprises in the country.

The partnership will help create job opportunities, enhance economic growth, and reduce the gender financing gap.

The $234 mn loan provided by the International Finance Corporation to Banque Misr will stimulate job creation in Egypt by focusing on providing financing to small and micro-enterprises, which constitute the majority of the workforce in the private sector in Egypt and are a key source of job creation in the country.

The partnership between International Finance Corporation and Banque Misr was announced during the annual meetings of world bank and IMF held in Marrakech.

Half of the International Finance Corporation's loan is specifically allocated for women-owned micro, small, and medium-sized projects, addressing the significant financing gap faced by these projects. The International Finance Corporation's investment relies on its support for Banque Misr's ZAAT program, which provides women with counseling and guidance to expand their businesses. Last year, Banque Misr provided banking services to more than 55,000 women.

This loan represents the first investment by IFC in gender equality perspective in one of the public sector banks in Egypt.

The loan consists of $190.7 mn from IFC and $43.3 mn from the International Finance Corporation's managed joint lending portfolio program (One Planet). The project will also benefit from the concessional financing provided by the International Finance Corporation's Global Credit Enhancement Facility for Small and Medium Enterprises.

Mohamed El-Etreby, Chairman of Banque Misr's Board of Directors, said, "Our partnership with the International Finance Corporation will increase the number of women-led companies in our banking portfolio for small and medium-sized enterprises and enhance financial inclusion for women entrepreneurs across the country."

He added, "The bank will help formalize informal small businesses owned or led by women, making them part of the formal sector. We have expanded our reach to this sector, supporting businesses in Egypt to grow, create job opportunities, and drive economic growth."

Sergio Pimenta, IFC Vice President for Africa, said during the partnership signing ceremony: "Increasing access to finance for micro, small, and medium-sized enterprises and women-owned businesses can help create job opportunities, promote economic growth, and reduce poverty."

He pointed out that this investment is another proof of the International Finance Corporation's commitment to empower the Egyptian government to support its private sector and promote gender equality.

This investment aligns with the Qatar partnership framework for the World Bank Group in Egypt, which aims to support better jobs in the private sector in the country, among other goals.

The International Finance Corporation has an investment portfolio in Egypt worth approximately $1.7 bn and an active advisory portfolio worth $32 mn. The International Finance Corporation supports the private sector in Egypt in key areas such as access to finance, financial technology, climate financing, manufacturing, infrastructure and renewable energy, healthcare, and gender inclusion.