The FINANCIAL — IFC, a member of the World Bank Group, helped its client banks increase financing for smaller enterprises in the Middle East and North Africa in 2014 by more than 60 percent, to spur job creation and boost economic growth.
IFC’s investees provided more than 3.7 million loans to micro, small and medium enterprises (MSMEs) in the Middle East and North Africa in 2014, up from 2.3 million loans in 2013. The total dollar amount of MSME loans provided stood at $19.7 billion, compared to $14.1 billion the previous year.
Clients include Pakistan’s Bank Alfalah, in which IFC invested $66 million to help expand access to finance for SMEs, and Lebanon’s Bank Audi, a champion of small business lending, in which IFC committed $60 million for an equity stake.
Small and medium enterprises form the backbone of MENA’s economy and are a key source of jobs and economic growth, but can often struggle to reach their potential. Smaller businesses receive just 8 percent of all bank lending in MENA, with only one in five having a loan or line of credit, according to IFC.
IFC committed a total of $447million in the financial services sector in the region to improve access to financing for SMEs in fiscal year 2015, while also providing advisory support to increase financial inclusion and boost shared prosperity across the region.
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