IFC Invests s605m to Boost Egypt’s Green Economy, SMEs
The International Finance Corporation (IFC) has committed $605 million to three transformative projects aimed at driving Egypt’s green transition, bolstering sustainable tourism, and enhancing access to finance for micro, small, and medium-sized enterprises (MSMEs). The announcement was made during a visit by IFC’s Vice President for Africa, Sérgio Pimenta, underscoring the institution’s dedication to Egypt’s economic development through private sector collaboration.
Key Investments for Economic Growth
The $605 million investment package includes:
- Sustainability Bond by AAIB: IFC, alongside the European Bank for Reconstruction and Development (EBRD) and British International Investment (BII), is investing $300 million in Egypt’s first sustainability bond issued by Arab African International Bank (AAIB). This initiative is Africa’s largest private bank-issued bond, with 75% of proceeds directed toward green financing, such as energy efficiency and renewable energy projects, while the remaining 25% supports social inclusion and MSMEs.
- Green Tourism Financing for Orascom: A $155 million loan has been extended to Orascom Development Egypt (ODE) to improve energy and water efficiency across several hotels in El Gouna. This project aims to reduce energy consumption from non-renewable sources by up to 50% and cut water usage by at least 20%, aligning with Egypt’s climate goals.
- CIB Loan to Support MSMEs: A $150 million loan to Commercial International Bank (CIB) will strengthen the bank’s capital position amid economic challenges. The funding will focus on empowering MSMEs, particularly those owned by women, fostering job creation, and closing the gender financing gap.
Advancing Egypt’s Green Transition
“The scale and breadth of IFC’s investments reflect the strength of our partnership with Egypt and our shared support for sustainable private sector development,” stated Sérgio Pimenta. “By stimulating financial inclusion and accelerating the transition to a greener economy, we aim to unlock Egypt’s full economic potential.”
The projects were signed during high-level meetings with Egyptian leaders, including Prime Minister Dr. Mostafa Madbouly and Minister of Planning and Economic Development, Dr. Rania Al-Mashat. Dr. Al-Mashat emphasized the importance of these initiatives:
“IFC’s new investments reflect our shared commitment to fostering sustainable, inclusive economic growth while advancing Egypt’s climate goals. These projects highlight the power of private capital in building a greener and more resilient future for Egypt.”
Building a Sustainable Financial Ecosystem
Hassan Abdalla, Governor of the Central Bank of Egypt, praised the role of financial institutions in sustainable development, noting: “IFC’s investments are a testament to the critical role of financial institutions in helping build a more sustainable and competitive financial ecosystem in Egypt.”
These projects align with the World Bank Group’s Country Partnership Framework for Egypt, which prioritizes green, resilient, and inclusive growth. They also bolster IFC’s strategy to increase private sector participation in fintech, climate finance, renewable energy, and MSME development.
IFC’s Longstanding Partnership with Egypt
Since commencing operations in Egypt in 1975, IFC has invested and mobilized $9 billion across various development projects and maintains an active $24 million advisory portfolio. Through this latest initiative, the IFC continues its legacy of driving transformative change in key sectors vital to Egypt’s sustainable development. Oil, Banking Stocks Lift Nigerian Equities Market by 0.37%
