CIB Launches Sustainable Finance Loan to Boost Egyptian SMEs

On July 24, 2024, at the Four Seasons Hotel Nile Plaza, Commercial International Bank ( CIB Egypt ), Egypt’s foremost private-sector bank, introduced its latest financial product, the “Sustainable Finance Loan,” aimed at small and medium-sized enterprises (SMEs). This initiative is the culmination of a two-year collaboration with the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, an expert in sustainable development, and the Frankfurt School, a leading European business institution.

Building on Success

The Sustainable Finance Loan is an extension of CIB’s successful “Sustaining SMEs” program. It adopts a sector-specific approach, offering customized solutions to various industries’ unique requirements. This loan is designed to help SMEs maintain operations, invest in renewable energy and resource efficiency, and upgrade their fixed assets. Eligible sectors include textiles, plastics, and food and beverage industries.

Financial Incentives and Support

This credit program offers incentives from international development financial institutions, ranging from 10% to 25%. The loan is available in both short and medium terms, with a repayment period of up to five years. Additionally, SMEs can access an additional corporate credit card with a limit of up to 10% of the facility. CIB also provides advisory services, offering insights into local and international market trends.

Commenting on the initiative, Hany El Dieb, Head of SME Business at CIB, stated, “CIB’s Sustainable Finance Loan underscores our commitment to providing SMEs with tailored financial and non-financial solutions, enabling them to achieve long-term cost reduction and integrate sustainability into their daily operations.”

Launch Event Highlights

The launch event featured a multi-stakeholder dialogue aimed at encouraging SMEs to adopt sustainable practices. Attendees included:

• Rashwan Hammady, CEO Retail Banking & Financial Inclusion, CIB
• Yasser Abdella. MBA, Deputy CEO Retail Banking, CIB
• Hany El-Dieb, Head of SME Business, CIB
• Dr Dalia Abdel Kader, Chief Sustainability Officer, CIB
• Bassel Rahmy, CEO and Managing Director, MSMEDA
• Sherif Younis, Head of Component for Business and Invest and African SMEs for Job Partnerships and SMEs Promotion Project, Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH
• Mert Dedebas, Team Leader & International Bank Advisor, Frankfurt School

Representatives from the Central Bank of Egypt (CBE), international donors, service providers, and SMEs also attended the event.

Promoting Sustainability

The event underscored the importance of sustainability and the role of SMEs in driving economic growth. It also highlighted the collaborative efforts between CIB, GIZ, and the Frankfurt School to develop financial products that support sustainable business practices. By providing access to finance and advisory services, CIB aims to empower SMEs to adopt sustainable practices and thrive in a competitive market.

CIB’s Sustainable Finance Loan represents a significant step forward in supporting the growth and sustainability of SMEs in Egypt, reflecting the bank’s dedication to fostering economic development and environmental responsibility.