World Bank’s International Finance Corporation (IFC) announced on Sunday a partnership with Egypt’s Banque Misr to increase access to finance for private micro, small and medium-sized enterprises (MSMEs), including women-owned ones in the country. The partnership aims to help create jobs, boost economic growth, and reduce the gender financing gap, IFC said in a statement.
Under the partnership, Banque Misr has secured a $234 million loan from the IFC to catalyse job creation in Egypt through its focus on providing financing to micro and small businesses. These businesses employ the vast majority a of Egypt’s private sector workforce and are the most important source of job creation in the country.
Mohamed El-Etreby, chairman of Banque Misr, (left) and Sérgio Pimenta, Regional Vice President for Africa at International Finance Corporation (IFC) (right) signing the partnership (Photo Credit: Banque Misr)
The IFC made the announcement during the International Monetary Fund (IMF) and World Bank’s annual meetings in Marrakesh, Morocco.
Half of IFC’s loan to Banque Misr is earmarked specifically for women-owned MSMEs, helping address the large financing gap that these businesses experience.
IFC’s investment builds on its support for Banque Misr’s ZAAT programme, which offers women advice and mentorship to expand their businesses. Over the last year, Banque Misr introduced banking services to over 55,000 women.
The loan marks IFC’s first gender-lens investment in a state-owned bank in Egypt. It will comprise $190.7 million from IFC and $43.3 million from IFC’s Managed Co-Lending Portfolio Programme (MCPP) One Planet. The project is also set to benefit from concessional funding made accessible by IFC’s Global SME Finance Facility.
“Our partnership with IFC will help expand the number of women-led businesses in our SME banking portfolio and boost financial inclusion for women entrepreneurs across the country,” said Mohamed El Etreby, chairman of Banque Misr.
“It will assist the bank in transitioning informal micro-businesses, many of which are owned or led by women, into the formal sector. We expanded our outreach to this segment, support businesses in Egypt to grow, create jobs, and drive economic growth.” El Etreby added.
The investment aligns with the World Bank’s Country Partnership Framework for Egypt, which seeks to support more and better private sector jobs in the North African country, among other objectives.
“Increasing access to finance for MSMEs and women-owned businesses can help to create jobs, boost economic growth, and reduce poverty,” said Sérgio Pimenta, IFC vice president for Africa, during the partnership signing ceremony.
“This investment is further proof of IFC’s commitment to enabling the Egyptian government to support its private sector and promote gender equality.”
IFC’s investment portfolio in Egypt amounts to nearly $1.7 billion and has an active advisory portfolio of $32 million. It supports Egypt’s private sector in key areas such as access to finance, fintech, climate finance, manufacturing, infrastructure and renewable energy, healthcare, and gender inclusion.
