Cairo, Egypt, September 7, 2016—IFC,
a member of the World Bank Group, has ramped up investments in Egypt with
a focus on improving the country’s infrastructure, supporting manufacturing
companies, and improving access to finance for small and medium enterprises
During fiscal year 2016, which ended
on June 30, IFC invested a total of $352 million in seven projects across
Egypt’s banking, manufacturing, infrastructure, and hospitality sectors.
Between fiscal years 2011 and 2016, IFC’s investments in the country totaled
close to $1.5 billion, including financing mobilized from other investors.
IFC's investments have been designed to support Egypt's private sector,
create jobs, and spur growth, all considered vital in a country that has
struggled economically in recent years.
“By unlocking the power of the private
sector, we can help create jobs and drive economic growth, fostering the
type of sustainable, inclusive development that so many Egyptians are clamoring
for,” said Mouayed Makhlouf, IFC Regional Director for the Middle East
and North Africa.
In FY16, IFC provided a financing package
of $144 million to Sonker Bunkering Company. The investment will help the
firm develop Egypt's first private liquid fuel terminal, at Sokhna Port,
and help the country meet a growing demand for fuel products and energy.
IFC provided financing of up to $50
million to the National Bank of Kuwait-Egypt to boost access to finance
for SMEs, encourage cross-border trade, and help firms invest in eco-friendly
technology. IFC also provided a $100 million loan to the Arab African International
Bank in Egypt to support the bank’s strategy to scale up its lending operations
to SMEs as well as build its sustainable energy finance (SEF) portfolio
in response to increased energy bills for many corporates and SMEs.
In addition, IFC provided a trade financing
line to Al Baraka Bank–Egypt, helping the lender's clients import critical
commodities, like pharmaceuticals, fertilizers, and spare parts.
To support the country’s manufacturing
sector, IFC acquired a 20 percent equity stake in Egypt-based Sphinx Glass,
helping the company expand its operations.
IFC also invested $25 million in Carbon
Holdings, an Egyptian maker of petrochemical products required in a range
of industries, including mining, food packaging, and automotive assembly.
Finally, to support the recovery of
the country’s tourism sector, IFC provided a $10 million loan to Credence
Hospitality Developments, supporting its expansion and helping to preserve
jobs amid the challenging times the sector is facing.
IFC, a member of the World Bank Group,
is the largest global development institution focused on the private sector
in emerging markets. Working with 2,000 businesses worldwide, we use our
six decades of experience to create opportunity where it’s needed most.
In FY16, our long-term investments in developing countries rose to nearly
$19 billion, leveraging our capital, expertise and influence to help the
private sector end extreme poverty and boost shared prosperity. For more
information, visit www.ifc.org