The International Finance Corporation (IFC) and Attijariwafa Bank Egypt (AWB Egypt) have announced a partnership that will strengthen the bank’s capital base and support its strategy to develop small and medium-sized enterprises (SMEs) and climate finance expansion in Egypt. The partnership includes a capital injection that will directly enhance AWB Egypt’s capacity to increase its lending operations.
Increasing Financial Flexibility for SMEs
IFC’s $20 million investment adds to AWB Egypt’s capital, enabling the bank to facilitate SME growth, particularly for women-owned enterprises. The increased capital base gives AWB Egypt the financial flexibility it needs to go after strategic goals with confidence.
IFC’s financing and advisory support will further help AWB Egypt increase its climate finance portfolio, particularly energy efficiency and renewable energy projects, in line with Egypt’s National Climate Change Strategy (NCCS) and Attijariwafa Bank group’s sustainability strategy.
Addressing SMEs Funding Difficulties
With around 6.4 million businesses, Egypt has the largest micro and SME market in the Middle East and North Africa. SMEs drive more than a third of Egypt’s GDP and create jobs, but difficulties in obtaining funding continue to limit their growth and potential.
Mouawia Essekelli, Managing Director of Attijariwafa Bank Egypt, remarked, “This partnership with IFC is a strategic step in strengthening Attijariwafa bank Egypt’s capital base, allowing us to expand our business and enhance our ability to support key growth sectors.
He added, “The increased capital will enable us to undertake larger and more impactful financing projects. With this investment, the bank will accelerate financing for SMEs and green projects, reinforcing our role in driving sustainable economic development.”
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Alignment with Global Development Goals
This project aligns with the World Bank Group’s strategy for Egypt, which includes improved private sector employment and economic resilience for growth. It also aligns with the bank group’s gender strategy, which aims to narrow the gender gap in developing economies.
Since 1975, IFC has invested $9 billion in Egypt’s growth and now manages a $22 million advisory portfolio. The support of the organization in Egypt spans several sectors such as fintech, climate finance, manufacturing, infrastructure, renewable energy, healthcare, and gender initiatives.