A ministerial meeting was held between Mr. Philippe Le Houérou Executive Vice President and CEO of IFC and the Ministers of International Cooperation Dr. Sahar Nasr, Energy and Renewable Energy Dr. Mohamed Shaker, Petroleum and Mineral Wealth Eng. Tarek Elmola, Trade and Industry Eng. Tarek Kabil and Investment Mrs. Dalia Khorshed, in presence of the Vice Minister of Finance for Financial Policies Mr. Ahmed Kojak. The meetings focused on supporting business entrepreneurship and SME sectors, as well as, setting youth projects as a priority over the coming phase.
Le Houerou stated that he was pleased to meet President El-Sisi and Prime Minister Sherif Ismail. He revealed that the IFC, an arm for the World Bank Group, was looking forward to supporting the private sector in emerging markets and increasing its cooperation with Egypt, especially upon its selection by IFC as a module for its investments in the MENA region. During his trip to Cairo that ran from December 14-16, he pledged to continue IFC support to job creation, entrepreneurship, innovation, and infrastructure development in Egypt. Le Houérou met with business leaders and government officials, underlining IFC’s pledge of $2 billion in new investment during the next three years. He also said IFC, a member of the World Bank Group, would stand by Egypt as is enacts a series of economic reforms meant to spur investment and jump-start growth.
“Egypt has tremendous long-term potential, given its large workforce, strategic location, and well-established manufacturing sector,” said Le Houérou. “The country’s recently announced economic reforms will help it capitalise on that promise-by breathing new life into the private sector, which can drive innovation and employment, and create lasting opportunities for all Egyptians.”
Le Houérou signed three new investment agreements. The investments are part of IFC’s Startup Catalyst programme that aims to support innovation in Egypt by addressing funding and knowledge gaps at the earliest stages of entrepreneurship. IFC will provide up to $2 million in equity financing to Flat6Labs Cairo, which will invest in about 100 Egyptian tech startups and support more than 300 entrepreneurs over the next five years, a $10 million investment to Algebra Ventures, the first Egypt dedicated venture capital fund to come to market since 2008 and a $20 million equity financing agreement with one of Egypt’s largest private construction companies, Hassan Allam Holding. The firm specialises in large-scale infrastructure projects and is a key player in Egypt’s vital construction sector.
Le Houérou described Egypt as a priority country for IFC. The institution has invested $2.8 billion in Egypt, including mobilisation, during the last decade. Since 2011 alone, it has committed $1.5 billion to private-sector businesses in the country. IFC also provides a wide range of advisory services to Egyptian businesses and government agencies. Combined, that work has helped to support smaller businesses, fund infrastructure development, improve the country’s business climate, and spur technological innovation.
He believes that there is a significant potential for investment in Egypt, as Egyptian youth have all the potentials for success, they just lack the funding; he also added that there will be more focus on Egyptian governorates which have the highest rate of unemployment. “IFC, with our six decades of experience fostering economic growth and fighting poverty, is a long-term partner for Egypt,” said Le Houérou. “We are committed to supporting the country and will use our global reach and knowledge to bring other investors here.” It is to be noted that this agreement is one of the largest deals made by the IFC in the MENA region.
