Assahafa.com
The International Finance Corporation (IFC) announced a new series of historic investments amounting to $310 million during the 2025 Africa Financial Industry Summit (AFIS) with the hope of improving small to medium enterprises (SMEs) and increasing job opportunities and financial inclusion.
The investments were announced today in Casablanca and reflect the increasingly important role of IFC in mobilizing funds to support Africa’s domestic markets and entrepreneurship as a driving force for sustainable development.
The investments will support companies in Egypt, Ethiopia, and Morocco as part of its strong partnerships with banks and financial institutions in those countries.
The two-day AFIS conference, organized in partnership with IFC, the Jeune Afrique Media Group, and the Kingdom of Morocco, brought together over 1,250 delegates representing the entire financial sector in Africa.
The conference had a focus on “Mobilizing Domestic Capital at Scale for Development” and brought together heads of central banks and governors, fintech developers, as well as other financial sector players.
On the sidelines of the summit, the IFC launched four large-scale projects that target helping small and medium enterprises, as well as increasing women’s access to finance, and reinforcing local banking systems.
In Egypt, a loan of $50 million to Suez Canal Bank will support more small business lending, especially in less accessible areas. A quarter of the money is allocated for women-owned enterprises, as part of the overall strategy to address the gender gap in finance at IFC.
In related news, the IFC signed a $10 million risk-sharing agreement with Attijariwafa Bank Egypt to support small to medium enterprises with loans. 50% of their loans will target small enterprises in host and displaced communities.
Meanwhile, 25% of the loans will target women. Supported by the Prospects Partnership, this project aims to promote development among the displaced and host communities.
In Morocco, IFC made known that it is investing the largest amount within the deal, a risk-sharing arrangement of $250 million with Saham Bank.
This newly formed bank came into existence due to the acquisition of Société Générale Marocaine de Banques. As part of the deal, IFC is to share no more than 50% of the credit risk with regard to the bank’s loan portfolio amounting to $500 million.
Promoting financial justice
In Ethiopia, IFC will support VisionFund, one of the leading microfinance institutions in the country. This support is to be done through the advisory service for responsible finance, risk management, and business planning.
This support is meant to ensure that VisionFund reaches more small business owners who are not yet financially included. It follows IFC’s earlier $10 million local currency loan to the same institution, highlighting a sustained partnership to deepen financial inclusion in East Africa.
“The combination of Africa’s own financial resources with strategic international capital is a potent recipe for growth on the continent,” said Ethiopis Tafara, Vice President for Africa at the IFC, emphasizing the significance of blending domestic and international capital.
“Africa’s entrepreneurs are building companies that rival any in the world—and with the right support, they can grow and create the jobs and opportunities Africa needs,” he added.
The announcement reflected the larger purpose of the AFIS: to foster dialogue between policymakers and private sector leaders to address the continent’s financing gaps.
Since its inception in 2021, the summit has now become a major platform used for collaboration between governments and private sector leaders to ensure that the financial shortfalls on the continent can be appropriately addressed.
Over the past 20 years, IFC has partnered with 300+ financial institutions across 40 countries in Africa. This effort at mobilizing private sector funds has played a critical role in helping small enterprises flourish, create employment opportunities, and drive the growth trajectory that will define Africa’s future.
Source: Morocco word news
