Egypt: IFC provides support for SMEsThe international Finance Corporation (IFC) has released a $100 million loan to the Arab African International Bank (AAIB) in Egypt, in support of small and medium enterprises (SMEs). Splitting the fundsAbout $50 million will be earmarked for SMEs to support the bank's strategy to significantly increase its lending to smaller businesses. While the remaining $50 million will be earmarked for introducing credit lines that support energy efficiency, helping businesses that need to make capital investments to refurbish or renovate existing operations to reduce energy costs. IFC targets to grow SMEsAccording to the IFC, the SME sector accounts for approximately 25% of Egypt's GDP and about 75% of total private sector employment. Despite this, a significant number of SMEs remain outside formal channels, with SMEs loans representing only around 5-10% of total lending.

Source: The North Africa Journal March 29, 2017 07:18 UTC