Baghdad, Iraq, June 11, 2014—IFC,
a member of the World Bank Group, is investing in a leading logistics company,
to help expand its operations into Iraq. This will support economic development,
facilitate international trade, and create jobs.
IFC is making a $5 million equity investment
to help Nafith International manage freight in four major Iraqi ports,
and across national borders. A specially designed system will help process
trucks quickly and easily, saving time and reducing costs. This will support
cross border trade, which is crucial to developing a diverse economy, making
Iraq less reliant on the oil sector.
“The investment from IFC will help
us expand into new markets, providing valuable services to developing economies,”
said Sameer Mubarak Chairman of Nafith International.
The project involves the construction
of a major truck yard near Umm Qasr port, which handles more than 50 percent
of Iraq’s container traffic, and two smaller yards to serve Abou Floos,
Maaqal, and Khor Al Zubeir ports.
“Improving infrastructure is a priority
for IFC in the region and particularly in conflict affected countries like
Iraq,” said Ziad Badr, IFC Country Officer in Iraq “The solution that
Nafith provides would be beneficial for countries with similar challenges.”
Nafith’s system was able to help Aqaba
port in Jordan reduce costs by around 20 percent, and significantly increase
port efficiency. Today over 3,500 truck movements are managed on a daily
basis, compared to 2,200 when Nafith first became involved.
The initiative is part of IFC’s wider
strategy that seeks to support economic diversification and job creation
in Iraq’s non-oil sectors. Between 2011 and 2012, IFC committed up to
$500 million, including the mobilization of $245 million to develop the
manufacturing, infrastructure, and financial markets sectors.
IFC, a member of the World Bank Group,
is the largest global development institution focused exclusively on the
private sector. Working with private enterprises in more than 100 countries,
we use our capital, expertise, and influence to help eliminate extreme
poverty and promote shared prosperity. In FY13, our investments climbed
to an all-time high of nearly $25 billion, leveraging the power of the
private sector to create jobs and tackle the world’s most pressing development
challenges. For more information, visit www.ifc.org
About Nafith International
Nafith International provides innovative
solutions to the freight and logistics sectors in developing countries,
helping nations increase the speed of truck processing within ports, border
crossings, customs centers, and logistics hubs. Nafith uses advanced
technology in its operations, and is a pioneer in the provision of RFID
technology for the logistics sector.