Cairo, Egypt, June 21, 2020—IFC,
a member of the World Bank Group, is investing up to $10 million in a local
Egyptian company to help it expand installation of digital prepaid and
smart electricity meters in Egyptian homes. The investment will support
government energy reforms to improve accuracy in billing, give consumers
more payment options and provide consumers with better information about
their energy use in order to encourage savings.
IFC’s financing will enable Globaltronics
SAE, which manufactures electricity measurement solutions, to support government
plans to replace outdated meters with prepaid and smart digital meters
as part of ongoing energy reforms. Prepaid digital meters improve billing
accuracy and offer more convenient payment options. Prepaid meters also
contribute to overall reduced energy consumption by making it easier for
consumers to track their energy use.
The investment will help Globaltronics
set up a new manufacturing facility in Saudi Arabia and increase its investment
in research and development to grow exports and develop new products.
Dr. Hany Assal, founder and chairman
of Globaltronics said: “We are glad to have the IFC as a partner in Globaltronics.
We look forward to investing and growing our business in Egypt and to continue
expanding in the Middle East and Africa.”
As well as supporting manufacturing,
the project is part of the World Bank Group’s strategy to help Egypt optimize
its overall domestic electricity consumption, which in turn will help the
government reduce subsidies to the energy sector.
Walid Labadi, IFC’s Country Manager
for Egypt, Yemen and Libya, said: “Egypt’s electricity consumption has
witnessed an increase in growth in recent years and is likely to accelerate
further. This project is part of IFC’s strategy to support the government
in its reforms of the sector and boost energy efficiency, while also helping
a local company expand in the region and diversify its offering.”
Egypt is a priority country for IFC
in the region. IFC’s commitments in Egypt total over $4 billion since
2005, including financing mobilized from other investors.
Globaltronics is the main supplier and
manufacturer of electricity smart grid solutions to the Egyptian market.
Its footprint expands over several manufacturing facilities in Egypt and
Saudi Arabia, employing hundreds of local talents. Globaltronics is a regional
market leader in home-grown manufacturing and product technologies. For
more information, visit: www.gtronics.com
IFC—a sister organization of the World Bank and member of the World Bank
Group—is the largest global development institution focused on the private
sector in emerging markets. We work in more than 100 countries, using our
capital, expertise, and influence to create markets and opportunities in
developing countries. In fiscal year 2019, we invested more than $19 billion
in private companies and financial institutions in developing countries,
leveraging the power of the private sector to end extreme poverty and boost
shared prosperity. For more information, visit www.ifc.org.