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IFC Supports Expansion of Leading Kyrgyz Packaging Producer


In Washington, DC:
Carmen Powell

Phone: +1 (202) 473 4982

Email:
cpowell@ifc.org

In Belgrade
:

Slobodan Brkic
Phone: +381 11 3023 750
E-mail:
sbrkic@ifc.org


Washington DC, June 27, 2007—IFC, the private sector arm of the World Bank Group, has signed an agreement with the Kyrgyz Republic’s Magic Box to help the company expand its operations and meet the growing demand for packaging products in the food, beverage, and other industries in Central Asia. The $1.5 million loan will help double the company's cardboard packaging and label-printing activities, making Magic Box one of the strongest industry players in the region.

To address the need for more capital investments, IFC's support will encourage private and foreign direct investment.  Through this project, the Corporation will also help the agribusiness and manufacturing sectors, which require high-quality packaging materials to support their domestic and export operations.


“Our investment, the first in the Kyrgyz manufacturing sector in the past two years, fits well with the country's economic reform agenda, which includes sustainable growth of the private sector,” said IFC's Director for South Europe and Central Asia, Shahbaz Mavaddat. He added that, “Through this investment, IFC will be supporting both domestic and foreign direct investment in a high value-added industry, where the majority of the demand is still met by imports. We are happy to support a successful Turkish businessman in his expansion in Central Asia in order to extend his reach.”


“We are pleased with the progress that Magic Box has made over the years,” said Dimitris Tsitsiragos, IFC Director for Global Manufacturing and Services.  “This investment emphasizes the importance of promoting private sector development and our ongoing commitment to support emerging economies that want to modernize and grow quickly.”


About IFC

IFC, the private sector arm of the World Bank Group, promotes open and competitive markets in developing countries.  IFC supports sustainable private sector companies and other partners in generating productive jobs and delivering basic services, so that people have opportunities to escape poverty and improve their lives. Through FY06, IFC Financial Products has committed more than $56 billion in funding for private sector investments and mobilized an additional $25 billion in syndications for 3,531 companies in 140 developing countries. IFC Advisory Services and donor partners have provided more than $1 billion in program support to build small enterprises, to accelerate private participation in infrastructure, to improve the business enabling environment, to increase access to finance, and to strengthen environmental and social sustainability. For more information, please visit
www.ifc.org.

About Magic Box

Magic Box, established in 2004, is a leading producer of cardboard packaging in the Kyrgyz Republic. It is owned by Muammer Akkaya, a Turkish entrepreneur with a vision to seize the opportunities in the growing Central Asian market. As chairman of the Kyrgyz-Turkish Businessmen’s Council, he oversees $300 million of direct foreign investment by Turkish corporations in the Kyrgyz Republic. Magic Box produces small cardboard boxes for cookies, pasta, tea, and other consumable products.