IFC direct finance of the Egyptian private sector
Egypt, Economics, 9/18/2002

The International Finance Corporation (IFC) has allocated more than L.E. one billion for financing the private sector ventures in Egypt during the coming year, according to IFC Director Samy Haddad.

"These allocations fall within the context of the IFC keenness to support the Egyptian private sector as well as luring more foreign investments to the local market," Haddad said. referring to the available opportunities to set up investment ventures, in Egypt in various sectors, atop of which come civil aviation.

"Opening the civil aviation services before the private sector will help pump more funds to the market besides encouraging great foreign institutions to invest in this vital sector," Haddad added.

"The IFC will focus this year on three main sectors in the local market, namely: agricultural products, weaving industry and exporting ready-to-wear clothes besides the natural gas sector," the IFC Director said.

"These three sectors are distinguished with their great exporting potentialities besides providing new job opportunities," he added.

"Meanwhile, negotiations are under way with two British and Spanish firms to establish two projects for liquefying natural gas," Haddad said.

Noting that Egypt possesses immense reserves of natural gas that could be exploited in revitalizing the local market.

"Moreover, negotiations tackle financing a project for stretching a natural gas pipeline from Arish to Aqaba port with the aim of selling and marketing the Egyptian natural gas to many neighboring countries, especially that this pipeline will be later stretched to each of Syria, Lebanon and some European countries," Haddad said.

"On the other hand, the IFC will follow new methods in financing venture in Egypt through providing guarantees to the Egyptian banks so as to lure more private investments," Haddad said.

He stressed that the IFC is ready to refinance the standing investment projects and getting acquainted with the financing needs of the Egyptian and foreign firms in Egypt without focussing on particular economic sectors.

"Value of guarantees extended by the IFC to Egypt this year hit $35 million (some L.E.160 million)," Haddad said. adding that the IFC is ready to guarantee the bonds issuance companies, a new activity in the total market.

The IFC Director referred to Egypt's selection as a regional headquarters for the Institutions Development Center in North Africa and the Middle East, saying that the new Center will be responsible for supporting small and medium size enterprises (SMEs) through extending technical and banking services.

"The new Center, to be inaugurated by World Bank (WB) President James Wolfensohn during his visit to Cairo on 11 September, will help activate liaison channels between the encourage the Egyptian banking system to provide necessary credit for SMEs," Haddad said.

"The new Center will operate under the supervision of the IFC and will cooperate with the Social Fund for Development (SFD) and other institutions which support SMEs," he added.

Previous Stories:
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