Cairo, Egypt, July 29, 2011—IFC,
a member of the World Bank Group, has approved a loan and equity investment
package that will support Egypt's Orascom Construction Industries (OCI),
and help stimulate foreign direct investment in Egypt, while creating jobs
and supporting inclusive economic growth.
The investment is expected to provide more than 2,500 jobs across the region.
IFC will make a $50 million equity investment in OCI and provide a $200
million loan to the Egyptian Fertilizer Company, a wholly-owned subsidiary
of OCI. IFC will also help mobilize an additional $200 million from other
“This support from IFC is an important signal that Egypt remains an appealing
destination for foreign direct investment,” said OCI chairman Nassef Sawiris.
“It will also help us carry out our long-term objective of growing our
core businesses and expanding employment opportunities.”
OCI employs 84,000 people in 25 countries across the Middle East, North
Africa and Europe. It plans to use the funds to expand its fertilizer and
construction businesses, which are important sources of jobs in Egypt and
the wider region. The Egyptian Fertilizer Company aims to increase its
production significantly by 2012, which will help make the OCI Fertilizer
Group one of the three biggest producers in the world. This will help support
the fertilizer industry, a key to boosting agricultural production during
a time of increasing global need for food security.
“OCI is at the forefront of the construction and fertilizer sectors in
the Middle East and North Africa,” said Dimitris Tsitsiragos, IFC Vice
President for Eastern and Southern Europe, Central Asia, Middle East and
North Africa. "This investment is in line with our strategy of supporting
cross-border and foreign direct investment, generating jobs, and creating
opportunity for people in the Middle East and North Africa
region. IFC's partnership with a strong regional company such as Orascom
Construction Industries highlights the long-term potential for investment
the region's private sector.”
IFC is committed to fostering economic development in the Middle East and
North Africa through an integrated investment and advisory services program,
underpinned by the conviction that the private sector plays a key role
in reducing poverty and creating jobs, particularly for the region’s large
population of unemployed youth.
IFC invested $1.5 billion in the Middle East and North Africa in the 2011
fiscal year. IFC also helped mobilize funds from other international financial
institutions, making up about $500 million of the $1.5 billion invested.
IFC expects to continue to increase its support for the region, investing
up to $6 billion by 2014, including $2 billion in mobilization.
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. We help developing
countries achieve sustainable growth by financing investment, providing
advisory services to businesses and governments, and mobilizing capital
in the international financial markets. In fiscal 2011, amid economic uncertainty
across the globe, we helped our clients create jobs, strengthen environmental
performance, and contribute to their local communities—all while driving
our investments to an all-time high of nearly $19 billion. For more information,
OCI is a leading construction contractor and fertilizer producer that operates
in 25 countries across the Middle East, North Africa and Europe. It employs
84,000 people and in 2010, its revenues reached $4.9 billion. The company’s
fertilizer arm, the OCI Fertilizer Group, owns and operates plants in Egypt,
Algeria and the Netherlands. Its contracting arm, OCI Construction Group,
is a leader in emerging markets and has $5.11 billion in back orders as
of March 31, 2011.