Cairo, Egypt, August 8, 2018—IFC,
a member of the World Bank Group, committed $1.2 billion in Egypt during
the recently concluded 2018 fiscal year, helping to create jobs, improve
local infrastructure, and boost economic growth.
That figure, which includes funds mobilized from other investors, represents
a record for IFC in Egypt. During fiscal year 2018, which ended June 30,
IFC supported several pioneering projects across the country. Those included
a landmark investment of $653 million in the Benban solar park. Located
near Aswan, it will be the world’s largest solar array once completed,
providing eco-friendly electricity to 350,000 people in upper Egypt. The
project was part of a larger IFC effort to support the development of Egypt’s
“A vibrant private sector is the key to creating jobs and spurring economic
growth in Egypt,” said Walid Labadi, IFC Country Manager for Egypt, Libya,
and Yemen. “Our investments have been geared towards addressing the challenges
facing the private sector—like power shortages, burdensome regulations,
gender inequality, and difficulty in accessing financing. By tackling those
issues, we can help lay the foundation for long-term growth and prosperity.”
During FY18, IFC issued its first local-currency loan in the country—providing
the equivalent of $15 million in Egyptian pounds for a polymer and construction
related company. The loan was designed to support the country’s crucial
building sector, which employs 12 percent of Egyptian workers. Local-currency
financing is considered important for sectors that underpin development:
infrastructure, housing, and smaller businesses.
IFC extended an Islamic financing package of $75 million to Almarai—a
regional dairy and juice producer with operations in Egypt—to enhance
food safety and create jobs along the agricultural supply chain. IFC also
provided and mobilized $135 million in debt financing to Africa’s leading
producer of fertilizers, the Egyptian Fertilizers Company, to help create
skilled jobs, stimulate foreign investment in Egypt's manufacturing sector,
and support small-hold farmers.
To expand access to finance for small businesses and support financial
inclusion, IFC invested $100 million in a leading Egyptian private bank,
Commercial International Bank. The financing helped the bank scale-up its
lending to clients, helping to preserve and create jobs.
IFC also worked with the government to ease burdensome regulations and
create a business-friendly environment. For example, the new Industrial
Licenses Law, which IFC advised on, has reduced the time needed to obtain
an industrial license from 635 days to 30 days.
IFC also advised the government on reforming secured transactions and creating
a movable collateral registry, two indicatives that have made it easier
for small business to access crucial capital.
IFC has been a long-term supporter of Egypt’s private sector. In the last
12 years IFC has invested $4 billion in Egypt.
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 with more than 2,000 businesses worldwide,
using our capital, expertise, and influence to create markets and opportunities
in the toughest areas of the world. In fiscal year 2018, we delivered more
than $23 billion in long-term financing for developing countries, leveraging
the power of the private sector to end extreme poverty and boost shared
prosperity. For more information, visit www.ifc.org