EGYPT—The International Finance Corporation (IFC) has announced a US$150 million commitment to four investment and advisory projects in key sectors, including healthcare, trade, and finance, to support economic development in Egypt and other parts of Africa. 

The four projects, which aim to support small businesses and mid-cap companies, include an advisory program with Egypt’s Universal Healthcare Insurance Authority (UHIA), a local currency swap agreement with Banque Misr, an investment in Banque du Caire and An equity investment of up envelope into SPE PEF III.

The four projects were signed as part of the visit to Egypt by IFC’s Vice President for Africa, Sérgio Pimenta, and along the sidelines of IFC Day in Egypt – a forum dedicated to economic development opportunities and challenges in Egypt and the role of IFC and the private sector to help the country achieve its development, poverty reduction, and job creation goals.

“IFC Day and our investments in Egypt’s key sectors demonstrate our ongoing commitment to supporting the country’s development goals,” said Sérgio Pimenta, IFC’s Vice President for Africa. 

“For nearly 50 years, IFC has worked alongside Egypt to boost private sector development –especially through macroeconomic challenges and regional uncertainties – and we plan to do more. The private sector is key to helping Egypt reach its full economic potential, creating jobs, and raising people’s living standards.”

The advisory program with Egypt’s Universal Healthcare Insurance Authority (UHIA) will develop a contractual framework between the government, healthcare services providers, and local insurance industry stakeholders to expand universal healthcare coverage for Egyptians, enhance healthcare quality, and scale private sector investments into Egypt. 

The local currency swap agreement with Banque Misr will expand IFC’s ability to lend to Egyptian companies that earn revenues primarily in Egyptian pounds and have limited access to foreign currency. 

Local currency financing is a key priority for the IFC, allowing the organization to increase its investment program in Egypt and finance projects in critical economic sectors.

The US$100 million investment in Banque du Caire includes a US$50 million loan to increase access to finance for privately owned micro, small, and medium-sized enterprises (MSMEs). 

Half of it is earmarked for women-owned businesses and a US$50 million trade finance facility to support Egyptian imports and exports as an issuing partner under the IFC Global Trade Finance Program.

Up to US$30 million will be invested, along with a US$20 million co-investment envelope, into SPE PEF III, a private equity fund managed by SPE Capital, to support mid-cap companies in Egypt, North Africa, and sub-Saharan Africa. 

At least a quarter of the fund’s invested capital is earmarked for women-owned or led businesses. The fund will help spur job creation, increase market productivity, and support regional entrepreneurs.

Since beginning its operations in Egypt in 1975, IFC has invested and mobilized approximately US$9 billion in investment projects. IFC’s private sector support in Egypt focuses on fintech, climate finance, manufacturing, infrastructure, renewable energy, healthcare, gender, and other sectors.

Liked this article? Subscribe to DealStreet Africa News, our regular email newsletter with the latest news, deals and insights from Africa’s business, economy, and more. SUBSCRIBE HERE