IFC, a member of the World Bank Group, has expanded a partnership with Ahli United Bank Egypt (AUBE) designed to boost cross-border trade and help local businesses access international markets, part of a wider effort to stimulate economic growth in Egypt.
IFC will increase its current trade financing support to AUBE four-fold, allowing the bank’s clients to tap into global trade channels. That will help Egyptian businesses expand, create jobs, and contribute to the economic development of the country.
“AUBE has greatly expanded its Trade Finance activities recently,” said Nevine El Messeery, Chief Executive Officer and Managing Director of AUBE. “Further expansion of the business with IFC’s help will strengthen our position as one of the key players in the Egyptian market, and enhance our ability to support Egypt’s needs for strategic commodities during challenging times.”
The initiative is part of IFC’s Global Trade Finance Program (GTFP), which supports banks as they deliver trade financing in challenging markets. It offers global and regional banks guarantees covering payment risk against letters of credit and other trade related transactions.
“Boosting cross-border trade is vital for Egypt’s economy and a priority for IFC,” said Nada Shousha, IFC Country Manager for Egypt, Libya, and Yemen. “Linking local and global markets together helps smaller firms improve competitiveness and grow their business, creating much-needed jobs.”
In fiscal year 2013, IFC’s GTFP committed over $1bn to guarantee cross-border trade deals in the Middle East and North Africa, doubling its commitments since 2010. Since the inception of the program, IFC has provided almost $4bn in guarantees across the region.
Since 2011, IFC has committed almost $1bn in Egypt, and mobilized $303m from other investors, to support private sector development.