A member of the World Bank Group is providing a $50 million (£40m) loan to support sustainable projects in Egypt.
The IFC is lending the money to the Arab African International Bank
(AAIB) as part of a $100 million (£80m) package to help scale up its
lending operations to small and medium enterprises (SMEs) and build its
clean energy finance portfolio.
The money will be used to introduce credit lines supporting energy
efficiency and help businesses make capital investments to refurbish or
renovate existing operations to reduce energy costs.
Another $50 million (£40m) will support the bank’s strategy to significantly increase its lending to smaller businesses.
Mouayed Makhlouf, IFC Regional Director for the Middle East and North
Africa, said: “While SMEs continue to play a dominant and increasing
role in creating jobs in Egypt, access to finance remains a significant
challenge for many.
“This loan will help a strong bank increase its reach to smaller
businesses and encourage other financial institutions to follow suit,
while also helping to boost energy efficiency in Egypt.”
Egypt recently secured a €140 million (£112m) boost for green development.