IFC Investments in Egypt Help Create Jobs, Spur Growth
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 (SMEs).
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 $1.5billion, 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.