The International Finance Corporation (IFC) has signed a $150 million financing agreement with Banque Misr to expand green lending and support micro, small and medium enterprises (MSMEs) in Egypt.
The agreement provides Banque Misr with funds to on-lend for projects including energy efficiency, renewable energy, sustainable transport, and green buildings.
The facility is also structured to widen access to finance for MSMEs, which account for a large share of Egypt’s private sector activity.
The IFC stated that the financing supports Egypt’s green transition and expands access to finance for MSMEs.
What they are saying
Sheikh Omar Sila, IFC’s Regional Director for North Africa and the Horn of Africa, said the partnership reinforces the institution’s climate and inclusion agenda in the country.
“We reaffirm our commitment to accelerating Egypt’s green transition, while promoting opportunities for women and MSMEs,” he said.
According to the IFC, the funds will target projects that improve energy efficiency, support renewable energy adoption and finance green-certified buildings.
The financing will also support small businesses seeking capital to expand operations or invest in climate-aligned upgrades.
Banque Misr is expected to channel the funding through its existing lending platforms. The bank has been expanding its sustainable finance portfolio in recent years.
A pattern of green finance expansion
The latest deal follows a series of IFC-backed initiatives aimed at strengthening Egypt’s green finance market.
In 2021, the IFC invested $100 million in Egypt’s first private-sector green bond issued by the Commercial International Bank.
The bond financed renewable energy, energy efficiency and green building projects, helping establish a framework for sustainable bond issuance in the country.
Meanwhile, in November 2024, the IFC announced more than $600 million in investments to advance Egypt’s green transition and support small businesses. The package included financing for sustainability-linked instruments and MSME lending through local banks.
In September 2023, the IFC also partnered with Banque du Caire to strengthen its climate finance strategy and assess climate-related risks in its loan portfolio.
In recent years, the IFC has partnered with local banks such as Commercial International Bank, Banque du Caire, and now Banque Misr to channel financing for green and MSME projects.
Why MSMEs are central to the financing
MSMEs represent a large share of Egypt’s private sector but often face challenges in accessing long-term finance, including for climate-related investments.
Under the new agreement, Banque Misr will use the IFC funding to expand lending to smaller businesses investing in climate-related activities.
The facility is intended to support expanded lending to MSMEs, including climate-aligned projects.
The IFC has stated in previous disclosures that strengthening MSME access to finance remains a priority across emerging markets. The institution views local financial intermediaries as key channels for reaching smaller firms.
Linking finance with climate goals
The financing also aligns with the broader climate strategy of the World Bank Group. In fiscal year 2024, the World Bank Group delivered a record $42.6 billion in climate finance globally, with the IFC accounting for a significant share directed at private sector projects.
Egypt has increased its emphasis on renewables and energy efficiency as part of its national climate commitments. Green finance instruments, including bonds and sustainability-linked loans, have grown steadily over the past few years.
Access to finance for climate projects and MSMEs has been identified as a challenge in Egypt. By channeling funds through a major domestic bank, the IFC seeks to expand the availability of climate-focused credit within the financial system.
Banque Misr, one of Egypt’s largest banks, plays a key role in corporate and SME lending. Its participation is expected to widen the reach of financing across sectors including construction, manufacturing, transport, and retail.
The IFC said the partnership is part of its continued engagement with Egypt’s financial sector to strengthen sustainable lending frameworks and support private sector development.
