In a recent development, the International Finance Corporation (IFC) and Banque Misr, Egypt's second-largest public sector bank, have announced a partnership aimed at enhancing financial access for micro, small and medium-sized enterprises (MSMEs). The initiative, which was unveiled on Monday at the World Bank Group – International Monetary Fund Annual Meetings, involves a $234 million loan from IFC.
The loan is part of Banque Misr's ZAAT program, which has already served over 55,000 women. It comprises $190.7 million from IFC and an additional $43.3 million from IFC's Managed Co-Lending Portfolio Program (MCPP) One Planet. Notably, half of this loan is earmarked for women-owned MSMEs, thus addressing the gender financing gap.
This initiative marks IFC's first gender-focused investment in an Egyptian public sector bank. The loan will benefit from concessional funding from IFC's Global SME Finance Facility.
Banque Misr Chairperson Mohamed El-Etreby highlighted the role of this initiative in transitioning informal micro-businesses into the formal sector. It aims to enhance financial inclusion for female entrepreneurs and stimulate job creation in Egypt.
Sérgio Pimenta, IFC Vice President for Africa, confirmed IFC's commitment to strengthening Egypt's private sector and promoting gender equality. This aligns with the World Bank Group's Country Partnership Framework for Egypt.
The IFC has a substantial $1.7 billion investment portfolio in Egypt that covers various sectors including manufacturing, infrastructure, renewable energy, and healthcare. This partnership underscores IFC's commitment to promoting gender equality and its active advisory portfolio of $32 million in Egypt.
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