IFC, a member of the World Bank Group supporting the private sector, and the Attijariwafa Bank Egypt have launched a mechanism for risk sharing in local currency equivalent to 10 million dollars for improving access to finance for small and medium-sized enterprises (SMEs) and promote job creation.

Under this agreement, IFC will cover up to 50% of credit risk of a new loan portfolio for SMEs from the bank Attijariwafa Egypt, for a maximum amount of $20 million (nearly of 100 million Egyptian pounds at the time of publication). Ce Financing should allow Attijariwafa Egypt to increase its portfolio loans to SMEs of more than 50% over the next five years, including at minus 25% will be destined for businesses owned by women and 50% to SMEs located in vulnerable communities.

This initiative benefits from an investment of 2.5 millions of dollars from the Partnership's blended financing mechanism for perspectives (PROSPECTS), a program led by the government Dutch. PROSPECTS aims to improve access to education and protection social and decent employment for host communities and populations forcibly displaced in East Africa and the Middle East.

The agreement was formalized on the sidelines of the Summit of the African financial industry, co-organized by IFC, Jeune Afrique and the Kingdom of Morocco. This summit brought together policy makers, investors and regulators to examine how African savings can stay safe the continent and finance growth in local currency.