IFC Supports Manufacturing in Egypt with a $25 million Investment in Carbon Holdings Limited
IFC, a member of the World Bank Group, will invest $25 million in Carbon Holdings, an Egyptian developer and operator of manufacturing projects for downstream petrochemicals required in a range of industries, including mining, food packaging, and automotive parts.
Egypt is a large net importer of petrochemicals products, despite having the raw materials to develop the country into an exporter, and create local downstream manufacturing capacity and new jobs. Specifically, the company plans to increase production of ingredients used in plastics, tires and automotive parts and food packaging, among others.
“We look forward to partnering with IFC and tapping the potential for Egypt’s chemicals sector to grow and make a meaningful contribution to job creation and tax revenues in a country where unemployment is very high,” said Basil El Baz, CEO of Carbon Holdings.
The investment is part of World Bank Group and IFC strategy in Egypt to encourage private investment while providing much-needed long-term foreign currency financing and helping to increase the country’s competitiveness.
Carbon Holdings currently employs over 500 people directly. IFC evaluations of other chemical projects indicate that for every direct employee of a manufacturing facility, as many as 11 more jobs are supported as smaller manufacturers enter the supply chain.
“This investment will support the development of a range of manufacturing industries that rely on chemical inputs that would otherwise have to be imported,” said Mouayed Makhlouf, IFC Director for the Middle East and North Africa. “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.”
From FY2011 through FY2015, IFC’s investments in Egypt totaled close to $1.2 billion, including mobilization funds. These investments covered 18 projects across a host of sectors, including financial markets, infrastructure, oil and gas, agribusiness, manufacturing, and health care.
About Carbon Holdings
Carbon Holdings Limited is a mid-to-downstream petrochemicals developer and operator established by Basil El-Baz, an Egyptian industrialist, entrepreneur and business executive serving as Chairman and Chief Executive Officer. Headquartered in Cairo, Egypt, the Company has regional offices located in the Dubai International Financial Center and a representative office in Houston. The Company is the principal shareholder and sponsor of several projects in the industrial zone and special economic zone in the Northwest Gulf of Suez, Egypt with expansion targeted in other strategic markets around the world.
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with more than 2,000 businesses worldwide, we use our capital, expertise, and influence, to create opportunity where it’s needed most. In FY15, our long-term investments in developing countries rose to nearly $18 billion, helping the private sector play an essential role in the global effort to end extreme poverty and boost shared prosperity.
(IFC Press Release)