The International Finance Corporation (IFC) has granted Al Baraka Bank Egypt a 50 million Murabaha Finance to increase access to finance for micro, small, and medium-sized enterprises (MSMEs) in Egypt, a statement said on Monday.
The bank will be able to increase financing for thousands of MSMEs in many sectors, such as technology, transport, communications, health, and others, the IFC’s statement mentioned.
The statement further added that the fund will allow the bank to offer at least 25 percent of the lending earmarked for women-owned SMEs, which often struggle to access financing.
The programme comes in line with Al Baraka Bank Egypt’s board direction to develop and implement environmental and social management systems (ESMS) through Sharia-compliant financing solutions, said CEO of the bank, Hazem Hegazy.
“With increased access to finance, MSMEs can grow their businesses, create more and better jobs, and build stronger communities,” said Cheick-Oumar Sylla, IFC’s Regional Director for North Africa and the Horn of Africa.
Under the partnership, IFC will also provide support to help Al Baraka Bank Egypt develop and implement an environmental and social (E&S) management system, enabling it to apply E&S requirements to its portfolio.
It is worth mentioning that IFC has an investment portfolio in Egypt amounting to nearly $1.7 billion and an active advisory portfolio of $32 million.