IFC investments in Egypt climbed to a record $1.2 billion in fiscal year 2018

IFC, a member of the World Bank Group, committed $1.2 billion in Egypt during the recently concluded 2018 fiscal year, helping to create jobs, improve local infrastructure, and boost economic growth.

That figure, which includes funds mobilized from other investors, represents a record for IFC in Egypt. During the 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 a 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 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 it’s 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.

Original source: IFC
Published on 8 August 2018