IFC, Attijariwafa Bank partner to boost SMEs, climate finance initiatives in Egypt - Markets & Companies
The International Finance Corporation (IFC), the financial arm of the World Bank Group, and Attijariwafa Bank Egypt (AWB Egypt) have started a strategic partnership to strengthen the bank's capital base and ability to support small and medium-sized enterprises (SMEs) and climate finance initiatives in Egypt.
The corporation said this in a statement on Monday.
The collaboration includes investing $20 million in Tier 2 subordinated debt to increase AWB Egypt's lending capacity and expand its operations in crucial sectors.
Tier 2 is the second or supplementary layer of a bank's capital, comprising revaluation reserves, hybrid instruments, and subordinated term debt.
This partnership will directly contribute to AWB Egypt's efforts to finance SMEs in Egypt, particularly focusing on women-owned businesses.
It will also promote energy efficiency by supporting renewable energy projects, aligning with Egypt's National Climate Change Strategy and Attijariwafa Bank Group's sustainability roadmap.
The added capital will help the bank pursue these goals with greater financial flexibility and confidence.
'This partnership is a key step in strengthening our capital base, which will enable us to undertake larger, more impactful financing projects. This investment will accelerate financing for SMEs and green projects, further supporting sustainable economic development in Egypt,' AWB Egypt Managing Director Mouawia Essekelli said.
According to the statement, Egypt has the largest MSME market in the MENA region, home to 6.4 million enterprises. Thus, the sector plays a vital role in the country's economy and contributes over a third of its GDP.
Therefore, this partnership addresses the SMEs' significant funding challenges.
'A robust and diversified financial sector is essential for fostering inclusive and sustainable economic growth. By enhancing AWB Egypt's capital base, IFC is helping to expand financing options for SMEs, promoting climate finance in Egypt, and contributing to a greener, more resilient future,' said Aliou Maiga, IFC's regional director for Financial Institutions Group in Africa.
The collaboration also aligns with the World Bank Group's Country Partnership Framework for Egypt, which focuses on improving private sector jobs, enhancing economic resilience, and closing the gender gap in developing economies.
IFC is the world's largest development institution focused on the private sector in emerging markets.
Since its founding in 1975 in Egypt, the corporation has invested $9 billion and provided advisory services totalling $22 million. It supports key sectors such as fintech, climate finance, manufacturing, and healthcare.
AWB Egypt, a subsidiary of Attijariwafa Bank Group based in Morocco, has operated in Egypt since it acquired Barclays Bank in 2017.
Now, it has 64 branches and 110 ATMs in Egypt. The Attijariwafa Bank Group has a wide presence in 27 countries, including a robust network across Africa and Europe.
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