(MENAFN- Daily News Egypt) The International Finance Corporation (IFC), the private investment arm of the World Bank, will invest $25m in Carbon Holdings Limited, an Egyptian downstream petrochemical producer.
The World Bank's International Finance Corp. is the largest global development institution focused on the private sector in emerging markets, working with more than 2,000 businesses worldwide.
'This is in line with our strategy to support local entrepreneurs and increase their access to capital, boosting investors' confidence and spurring much needed growth in Egypt,' said Mouayed Makhlouf, IFC Director for the Middle East and North Africa.
He added that Egypt relies on importing petrochemical products, despite having the raw materials required to turn the country into an exporter, creating local downstream manufacturing capacity and new employment opportunities in the process.
Carbon Holding Limited currently employs more than 500 people, and is seeking the funds required to finance the building of Tahrir Petrochemicals Complex in Ain Sokhna, said Makhlouf.
The Tahrir Petrochemical Complex, set to be constructed in Ain Sokhna with $7bn worth of investments, is scheduled to be completed by 2019 and will reduce Egypt's dependence on imported petrochemicals.
Carbon Holdings in looking forward to this partnership with the IFC, which will boost the potential of Egypt's chemicals sector, contributing in turn to job creation and tax revenues in a country where unemployment rates are high, said Basil El Baz, CEO of Carbon Holdings.
This investment is part of World Bank Group and IFC strategy in Egypt that aims to encourage private investment while providing long-term foreign currency financing and helping to increase the country's competitiveness.
The IFC has invested $1.2bn in Egypt, between the fiscal years 2011 and 2015. These investments cover 18 projects in various sectors, including financial markets, infrastructure, and health care.