IFC has provided a $100 million loan to the Arab African International Bank (AAIB) to enable the institution expand its operations in Egypt.
AAIB is a leading player in the Egyptian banking sector that adopts sustainability policies and practises in its daily banking operations.
The loan will complement AAIB’s efforts with half of the funds being directed towards its lending to small businesses.
“Small and medium enterprises are at the heart of driving economic growth so we are delighted to be able to continue to expand our lending to these businesses,” Hassan Abdalla, CEO and Vice Chairman, AAIB said.
Egypt’s SME sector contributes 25 per cent to the economy and 75 per cent of total private sector employment but SMEs loans represent under ten per cent of total formal lending.
Mouayed Maklouf, Regional Director, IFC Middle East and North Africa added that the loan will encourage other financial institutions to follow suit.
The remaining $50 million will be for introducing credit lines that support energy efficiency, helping businesses to make capital investments to refurbish or renovate existing operations to reduce energy costs.