That figure, which includes funds mobilized from other investors, represents a record for IFC in Egypt. During fiscal year 2018, which ended June 30, IFC supported several pioneering projects across the country.
Those included a landmark investment of $653 in the Benban solar park. Located near Aswan, it will be the world’s largest solar array once completed, providing eco-friendly electricity to 350,000 people in upper Egypt. The project was part of a larger IFC effort to support the development of Egypt’s private sector.
“A vibrant private sector is the key to creating jobs and spurring
economic growth in Egypt,” said Walid Labadi, IFC Country Manager for
Egypt, Libya, and Yemen. “Our investments have been geared towards
addressing the challenges facing the private sector—like power
shortages, burdensome regulations, gender inequality, and difficulty in
accessing financing. By tackling those issues, we can help lay the
foundation for long-term growth and prosperity.”
During FY18, IFC issued its first
local-currency loan in the country—providing the equivalent of $15
million in Egyptian pounds for a polymer and construction related
company.
The loan was designed to support the country’s crucial building
sector, which employs 12 percent of Egyptian workers. Local-currency
financing is considered important for sectors that underpin development:
infrastructure, housing, and smaller businesses.
IFC extended an Islamic financing package of $75 million to Almarai—a
regional dairy and juice producer with operations in Egypt—to enhance
food safety and create jobs along the agricultural supply chain.
IFC also provided and mobilized $135 million in debt financing to Africa’s leading producer of fertilizers, the Egyptian Fertilizers
Company, to help create skilled jobs, stimulate foreign investment in
Egypt’s manufacturing sector, and support small-hold farmers.
To expand access to finance for small businesses and support
financial inclusion, IFC invested $100 million in a leading Egyptian
private bank, Commercial International Bank. The financing helped the
bank scale-up its lending to clients, helping to preserve and create
jobs.
IFC also worked with the government to ease burdensome regulations
and create a business-friendly environment. For example, the new
Industrial Licenses Law, which IFC advised on, has reduced the time
needed to obtain an industrial license from 635 days to 30 days.
IFC also advised the government on reforming secured transactions and
creating a movable collateral registry, two indicatives that have made
it easier for small business to access crucial capital.
IFC has been a long-term supporter of Egypt’s private sector. In the last 12 years IFC has invested $4 billion in Egypt.
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