In a move aimed at invigorating Egypt’s economy and fostering sustainable development, Attijariwafa Bank is seeking $30 million in financing from the International Finance Corporation (IFC), a member of the World Bank Group. This strategic initiative highlights the Moroccan banking group’s commitment to supporting Egyptian small and medium-sized enterprises (SMEs), which are widely recognized as the backbone of the country’s economic growth.
The financing plan, which is expected to gain IFC approval on December 20, is structured into two key components designed for maximum impact. The first is a $20 million subordinated loan intended to strengthen Attijariwafa Bank Egypt’s (AWBE) capital base, thereby enhancing its capacity to extend credit to SMEs. This type of loan, being subordinated, reflects a long-term investment strategy, where repayment is prioritized after other financial obligations, signaling confidence in AWBE’s resilience.
The second component involves a $10 million risk-sharing mechanism in local currency. This innovative framework allows AWBE to share with IFC the risks associated with loans granted to SMEs. Under this arrangement, IFC will cover a portion of potential losses on a loan portfolio that could reach up to $20 million, limiting its own exposure to half the portfolio value.
This financing forms part of the ambitious “Egypt30by30 Upstream” program, which aims to enhance female representation in leadership roles and promote investment in renewable energy projects throughout Egypt. IFC will play a vital role in supporting AWBE in implementing this program, ensuring the allocated funds are directed toward environmentally sustainable initiatives. To achieve this, IFC plans to leverage its specialized Climate Assessment for Financial Institutions (CAFI) tool to assess and monitor the climate-related impact of these investments.
Attijariwafa Bank Egypt has firmly established itself as a key player in the country’s financial landscape, with a network of 64 branches and 112 ATMs serving customers across major cities. Its workforce of over 1,445 employees provides financial solutions to more than 169,000 individual clients and a broad range of businesses.
This new financing will allow AWBE to solidify its market position and play an even greater role in driving economic growth in Egypt. It will also serve as a bridge for strengthening economic ties between Morocco and Egypt, two pivotal nations in Africa’s economic framework.
By combining financial innovation with a focus on sustainability, Attijariwafa Bank is paving the way for Egyptian SMEs to thrive while contributing to a greener, more inclusive future. This collaboration is a testament to the potential of cross-border partnerships in fostering regional progress and shared prosperity.
