Cairo, Egypt, November 24, 2024 – IFC today announced a financing package for Egypt's leading private sector bank, CIB, to strengthen the bank's capital position and help it deliver on its commitment to support micro, small, and medium-sized enterprises (MSMEs) in the country, including women-owned MSMEs.
IFC's $150 million loan for CIB will strengthen the country's financial sector amid challenging macroeconomic conditions. This partnership will foster job creation, boost economic development, and help reduce the gender financing gap in Egypt.
While MSMEs comprise 98% of Egyptian businesses and contribute to more than 40% of the country's GDP, they face substantial funding constraints - which significantly limit their growth potential and hinders their ability to fully realize their economic contributions.
Commenting on the transaction, Mr. Hisham Ezz-Al Arab, Chief Executive Officer (CEO) & Executive Board Member at CIB, said, "We are pleased to announce the extension of our partnership with the IFC, a significant step that will strengthen Egypt's financial sector and will support our capital base, allowing us to provide more support to small and medium enterprises. This partnership reflects IFC's belief in CIB's commitment to fostering innovation, improving accessibility in finance, empowering entrepreneurs, 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."
"A strong financial sector is essential for Egypt's economic development," said Sérgio Pimenta, IFC's Vice President for Africa. "By boosting CIB's capital position, IFC is helping unlock opportunities for businesses, supporting job creation, and improving the livelihoods of Egyptians."
IFC has a long-standing strategic partnership with CIB, helping issue Egypt's first private sector green bond in 2021 – which supported climate adaptation, management systems, energy efficiency, green building projects, and developing and implementing its robust climate risk management framework in 2023.
The financing announced today aligns with the World Bank Group's Country Partnership Framework (CPF) for Egypt, which seeks to support more and better private sector jobs. It also aligns with the Global Small and Medium Enterprises Finance Facility (GSMEF). This IFC initiative aims to accelerate financial inclusion and reduce the financing gap faced by underserved SMEs.
Since beginning its operations in Egypt in 1975, IFC has invested and mobilized $9 billion in development projects and has an advisory portfolio of $24 million. IFC's private sector support in Egypt focuses on fintech, climate finance, manufacturing, infrastructure, renewable energy, healthcare, gender, and other sectors.
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2024, IFC committed a record $56 billion to private companies and financial institutions in developing countries, leveraging private sector solutions and mobilizing private capital to create a world free of poverty on a livable planet. For more information, visit www.ifc.org.
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About Commercial International Bank S.A.E.
Established in 1975, Commercial International Bank (CIB) is Egypt's leading private sector bank. Each of CIB's 8,238 employees is dedicated to achieving the Bank's mission: delivering a distinctive customer experience through innovation and data analytics to provide customer-centric solutions and services that meet their needs. With a well-established network of over 200 branches, first-rate remote channels, and digital solutions, CIB provides individuals, households, high-net-worth individuals, large corporations, and small businesses with exceptional, 24/7 services.
CIB has consistently been recognized as the most profitable bank operating in Egypt and the bank of choice for over 500 of Egypt's largest corporations. Since 2019, Bloomberg has included CIB in its "Gender-Equality Index," making it the first company in Egypt and Africa to be listed on the index, which includes 230 companies from 36 countries representing ten sectors.
For further information about CIB's products and services, please visit cibeg.com.
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