Cairo, Egypt, November 24, 2024 – The International Finance Corporation (IFC) has announced a $150 million financing package for the Commercial International Bank (CIB), Egypt’s leading private sector bank. This strategic move aims to enhance CIB’s capital base, empowering it to extend greater support to micro, small, and medium-sized enterprises (MSMEs), including women-owned businesses, across the country.
The financing will bolster Egypt’s financial sector amidst challenging macroeconomic conditions, with a focus on fostering job creation, advancing economic development, and addressing the gender financing gap in Egypt.
MSMEs make up 98% of Egyptian businesses and contribute over 40% of the nation’s GDP, yet they face significant funding challenges that restrict their growth. IFC’s investment in CIB is designed to bridge this gap, creating a more inclusive financial ecosystem.
Empowering Entrepreneurs and Advancing Economic Growth
Hisham Ezz-Al Arab, CEO and Executive Board Member at CIB, highlighted the significance of the partnership, stating:
“This extension of our collaboration with the IFC strengthens Egypt’s financial sector and supports our capital base, enabling us to provide increased support to MSMEs. This reflects IFC’s confidence in CIB’s commitment to fostering innovation, improving financial accessibility, 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.”
Sérgio Pimenta, IFC’s Vice President for Africa, added:
“A strong financial sector is essential for Egypt’s economic development. By boosting CIB’s capital position, IFC is unlocking opportunities for businesses, supporting job creation, and improving the livelihoods of Egyptians.”
A Legacy of Partnership
The latest financing builds on a longstanding partnership between IFC and CIB. Notably, IFC helped issue Egypt’s first private-sector green bond in 2021, followed by supporting CIB’s climate risk management initiatives in 2023. These efforts align with the World Bank Group’s Country Partnership Framework (CPF) for Egypt, which focuses on creating more private-sector jobs, and IFC’s Global Small and Medium Enterprises Finance Facility (GSMEF).
IFC’s Commitment to Egypt
Since commencing operations in Egypt in 1975, IFC has invested and mobilized $9 billion in development projects, spanning fintech, climate finance, renewable energy, healthcare, and more. Its advisory portfolio in the country is valued at $24 million.
About CIB
Established in 1975, CIB is Egypt’s premier private sector bank, serving individuals, corporations, and SMEs with a network of over 200 branches and digital platforms. Recognized for its profitability and innovative solutions, CIB has been included in Bloomberg’s Gender-Equality Index since 2019, the first company in Egypt and Africa to achieve this honor.
For more information about IFC, visit www.ifc.org. Learn more about CIB at www.cibeg.com.
