Addis Ababa, Ethiopia, July 9, 2010
— IFC Vice President for Business Advisory Services Rachel Kyte said
today that IFC will continue its support for Ethiopia’s sustainable economic
growth by working more closely with the country’s government, and private
sector to create opportunities for entrepreneurs and businesses. IFC is
a member of the World Bank Group.
Kyte is in Ethiopia on a two-day visit
to explore how IFC can contribute more to Ethiopia’s private sector development.
She is meeting with senior government officials, private sector clients
and development partners.
“Ethiopia is a country of high potential,
including in agriculture, manufacturing, renewable energy and services,”
Kyte said. “IFC is committed to assist Ethiopia’s government in creating
an enabling environment for business and to support private sector investment
in key sectors of the country.”
Since opening a new representative office
in Ethiopia in November 2008, IFC has steadily increased its activities
in the country. Recent projects include a $11 million investment to support
gold exploration at the Tulu Kapi Gold Project in Western Ethiopia, and
a $55 million investment in Derba Midroc Cement Company to help address
the country’s cement shortage.
IFC is also finalizing a $20 million
guarantee scheme to increase financing for specialty coffee farmers under
the Ethiopian Coffee Initiative, run by Technoserve, and has launched
a program with the Ethiopia Commodities Exchange to design financial instruments
and advocate for any regulatory changes needed so that banks can accept
warehouse receipts as collateral for loans.
IFC’s strategy in Ethiopia focuses
on proactively developing new investment projects, supporting public-private
partnerships that promote economic growth, and mobilizing direct investments
to key sectors of the economy, including agribusiness, financial services,
health and education, infrastructure, manufacturing, and tourism.
IFC’s current committed investment
portfolio in Ethiopia totals approximately $70 million. IFC is also conducting
several advisory services programs provide support to improve the investment
climate, and promote better access to finance through measures such as
the warehouse receipt finance program, to name a few.
IFC, a member of the World Bank Group,
creates opportunity for people to escape poverty and improve their lives.
We foster sustainable economic growth in developing countries by supporting
private sector development, mobilizing capital for private enterprise,
and providing advisory and risk mitigation services to businesses and governments.
Our new investments totaled $14.5 billion in fiscal 2009, helping channel
capital into developing countries during the financial crisis. For more
information, visit www.ifc.org.