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Egypt, IFC ink two agreements to support MSMEs, healthcare

Banque du Caire and the International Finance Corporation (IFC), a member of the World Bank Group, signed on Sunday a financing agreement worth $100m
13.05.24 | Source: Ahram Online

The agreement includes $50 million to support the development efforts of micro, small, and medium private sector projects, with a focus on financing projects owned by women entrepreneurs.

An additional $50 million is allocated for trade financing under the IFC’s International Trade Finance Programme.

The two sides signed the agreements during IFC Day in Egypt, which kicked off in Cairo on Sunday.

The event was attended by Prime Minister Mostafa Madbouly and the ministers of planning, finance, communications, and public business, along with a group of bank presidents and private sector companies.

Egypt’s Minister of International Cooperation Rania Al-Mashat emphasized this agreement is not the first of its kind, as the corporation has previously financed the country’s first green bonds for the private sector, providing $100 million to the International Finance Corporation, thus supporting green transformation efforts and emissions reduction.

The minister added that the Ministry of International Cooperation is committed, in line with presidential directives, to supporting and empowering the private sector by enhancing relations with multilateral and bilateral development partners, exploring more available financing tools for various private sector companies in Egypt, providing both direct and indirect financing options.

The Egyptian private sector has received $10.3 billion in facilitated development financing between 2020 and 2023 in the form of direct financing, investment contributions, technical support, and credit lines.

Moreover, a consultancy services agreement for the comprehensive health insurance system of the IFC was signed between Minister of Finance Mohamed Maait and the chairman of the General Authority for Comprehensive Health Insurance.

The agreement aims to strengthen the measures taken in cooperation with development partners to support the system in Egypt. This enhances the state's efforts to provide comprehensive healthcare services and health insurance coverage for all citizens by contracting with a network of private sector healthcare providers.

Al-Mashat said that in pursuit of this goal, efforts with development partners have succeeded in providing facilitated development financing amounting to $900 million, including $400 million from the World Bank, $181.6 million from the French Development Agency, and $326.7 million from the Japanese side. 

According to the agreement, the International Finance Corporation, drawing on its accumulated experience in dealing with the private sector in more than 100 countries worldwide, will analyze contracting systems with the private sector, hold consultations with relevant parties, provide technical support and consultations for contracting with private sector healthcare providers, and offer technical support to the General Authority for Comprehensive Health Insurance, among other provisions that achieve the desired project objectives.