IFC and Attijariwafa bank Egypt announced a partnership to bolster the Bank’s capital position and help it deliver on its strategy to support small and medium-sized enterprises (SMEs) and the growth of climate finance in Egypt. This infusion of capital will directly enhance AWB Egypt’s capacity to expand its lending activities.
IFC’s $20 million Tier 2 qualifying subordinated debt will boost AWB Egypt’s capital base, increasing its capacity to finance the growth of SMEs, with a focus on women-owned enterprises. A stronger capital base provides AWB Egypt with greater financial flexibility and allows it to pursue strategic initiatives with increased confidence. IFC’s funding and technical assistance will also allow AWB Egypt to grow its climate finance portfolio, particularly energy efficiency and renewable energy projects, in alignment with Egypt’s Climate Change Strategy (NCCS) and Attijariwafa bank group’s ambitious sustainability roadmap. This capital enhancement is crucial for supporting these strategic growth areas.
Egypt’s 6.4 million enterprises make it the largest micro and SME market in the Middle East and North Africa. Despite contributing over one-third of the country’s GDP and employing most of the private sector workforce, Egypt’s SMEs face substantial funding constraints that limit their growth and hinder their full economic contribution.
“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. 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,” said Mouawia Essekelli, Managing Director of Attijariwafa bank Egypt.
“A robust and diversified financial sector is crucial for driving inclusive and sustainable economic growth,” said Aliou Maiga, IFC’s Financial Institutions Group (FIG) Director for Africa. “By enhancing AWB Egypt’s capital base, IFC is supporting financing for SMEs and fostering Egypt’s climate finance market, contributing to a stronger, greener future for the country.”
The project aligns with the World Bank Group’s Country Partnership Framework (CPF) for Egypt, which seeks to support more and better private sector jobs and improve resilience to shocks. It also aligns with
the bank Group’s gender strategy, which focuses on closing the gender gap in developing economies.
Since beginning its operations in Egypt in 1975, IFC has invested and mobilized $9 billion in development projects and has an advisory portfolio of $22 million. IFC’s private sector support in Egypt focuses on fintech, climate finance, manufacturing, infrastructure, renewable energy, healthcare, gender, and other sectors.
