IFC Targets $2 Billion in Investments to Strengthen Egypt’s Financial Sector

Abbas Aziz By Abbas Aziz
3 Min Read

The International Finance Corporation (IFC), a member of the World Bank Group, has ramped up its commitment to Egypt’s financial system. Its investments have reached $1.5 billion to date and are projected to rise to $2 billion by the end of the fiscal year.

These investments aim to strengthen Egypt’s banking and non-banking financial institutions, support small and medium enterprises (SMEs), and expand access to finance across underserved sectors of the economy.

Expanding Egypt’s Financial Ecosystem

According to Gokhan Kont, Investment Manager for North Africa and the Horn of Africa at IFC, the institution’s goal is to reach 15 financial institutions in Egypt. These include both commercial banks and non-banking entities such as:

  • Leasing companies
  • Microfinance institutions
  • Securitization platforms

The IFC’s investments are part of a long-term strategy to promote financial inclusion and enhance private sector development across Egypt.

Focus on SMEs and Inclusive Financing

A major focus of the IFC’s initiative is to empower small and medium-sized enterprises (SMEs). These companies account for nearly 90 percent of Egypt’s employment opportunities. Despite their economic importance, many SMEs struggle to secure traditional bank financing.

To bridge this gap, the IFC is expanding its financing models to include:

  • Local currency loans to protect businesses from foreign exchange risks.
  • Securitization programs that allow local institutions to unlock liquidity and extend credit more efficiently.
  • Support for microfinance and leasing companies that serve small businesses and entrepreneurs in diverse sectors.

This approach aims to deepen financial inclusion and help smaller enterprises gain the capital needed to scale their operations.

Driving Sustainable Economic Growth

The IFC views Egypt’s financial sector as a critical driver of economic resilience. By supporting financial intermediaries that can reach underserved markets, the organization aims to strengthen the country’s broader private sector ecosystem.

According to Kont, the IFC’s local partnerships are designed to expand financing beyond large corporations. This will ensure that small enterprises benefit directly from improved access to capital.

Through targeted investments, the IFC is also helping Egypt modernize its financial infrastructure, foster innovation in lending, and support the country’s long-term economic transformation.

A Strategic Commitment to Egypt’s Future

As Egypt continues to push for financial reform and private sector growth, the IFC’s $2 billion target underscores its confidence in the market’s potential. The organization’s strategy aligns with Egypt’s national development goals, focusing on inclusivity, financial stability, and sustainable growth.

By mobilizing capital and technical expertise, the IFC is not only injecting funding into the system but also helping Egypt’s financial institutions become more adaptive, innovative, and globally competitive.