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IFC CEO Signs New Investments, Pledges to Support Egypt’s Private Sector


In Cairo:
Riham Mustafa

Phone: +(202) 2461-4230

E-mail: rmustafa@ifc.org


Cairo, Egypt, December 15, 2016— IFC Executive Vice President and Chief Executive Officer Philippe Le Houérou signed today a new investment agreement that will see IFC invest in Flat6Labs Cairo, a leading regional accelerator and seed fund. The investment is part of IFC’s Startup Catalyst program and aims to support innovation in Egypt by addressing funding and knowledge gaps at the earliest stages of entrepreneurship.

IFC will provide up to $2 million in equity financing to Flat6Labs Cairo, which will invest in about 100 Egyptian tech startups and support more than 300 entrepreneurs over the next five years.


Philippe Le Houérou finalized millions of dollars in new investments during his first official visit to Egypt and the Middle East. During his trip to Cairo which ran from December 14-16, he pledged to continue to support job creation, entrepreneurship, innovation, and infrastructure development in Egypt.


Le Houérou met with business leaders and government officials, underlining IFC's support for the country's private sector and pledging up to $2 billion in new investment during the next three years. He also said IFC, a member of the World Bank Group, would stand by Egypt as is enacts a series of economic reforms meant to spur investment and jump-start growth.


“Egypt has tremendous long-term potential, given its large workforce, strategic location, and well-established manufacturing sector,” said Le Houérou. “The country's recently announced economic reforms will help it capitalize on that promise—by breathing new life into the private sector, which can drive innovation and employment, and create lasting opportunities for all Egyptians.”


During his two-day visit, Le Houérou finalized a $10 million investment to Algebra Ventures, the first Egypt-dedicated venture capital fund to come to market since 2008.


He also signed a $20 million equity financing agreement with one of Egypt’s largest private construction companies, Hassan Allam Holding. The firm specializes in large-scale infrastructure projects and is a key player in Egypt's vital construction sector, which employs 10 percent of the country's workforce.


Le Houérou described Egypt as a priority country for IFC. The institution has invested $2.8 billion in the Egypt, including mobilization, during the last decade. Since 2011 alone, it has committed $1.5 billion to private-sector businesses in the country. IFC also provides a wide range of advisory services to Egyptian businesses and government agencies. Combined, that work has helped to support smaller businesses, fund infrastructure development, improve the country's business climate, and spur technological innovation.


“IFC, with our six decades of experience fostering economic growth and fighting poverty, is a long-term partner for Egypt,” said Le Houérou. “We are committed to supporting the country and will use our global reach and knowledge to bring other investors here.”


About IFC

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

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