FILE- Egyptian Currency
CAIRO – 9 May 2018: International Finance Corporation (IFC), a member of the World Bank Group, announced Wednesday providing a $15 million (LE 265.35 million) loan mainly in Egyptian pounds to Vinavil Egypt for Chemicals Company.
IFC clarified in a press release that the goal of this loan is to help the company to boost its production and to create jobs.
The statement also revealed that the loan will double the company’s annual production of chemical binders and emulsions.
Vinavil Egypt for Chemicals, a subsidiary of Vinavil SPA, is a manufacturer of construction-related materials, which is operating on the construction chemicals used in infrastructure projects like housing, underground and ports construction.
IFC said that its first local currency financing will address the company’s need for flexible borrowing in both Egyptian pounds and US dollars, and will create a model for future multi-currency loans.
IFC Director for the Middle East and North Africa Mouayed Makhlouf said that local currency financing is also vital for sustainable private sector investment.
“Providing the loan in Egyptian pounds ensures the currency is more accessible to local companies, which can help boost crucial industries like manufacturing and construction,” Makhlouf added.
For his part, Managing Director of Vinavil Egypt, Gianmaria Palazzolo, said that the flexibility of borrowing in both Egyptian pounds and US dollars will enable the company to make long-term capital investments and support the working capital.
“The financing from IFC will help us expand in Egypt and become a regional exporter of specialty construction chemicals, creating jobs, especially for highly skilled workers,” he added.
This loan comes as a part of IFC efforts to boost the development of Egypt’s construction industry, as an important source of employment and a key economic driver, according to the statement.
It clarified that the sector allocates more than 4 percent of Egypt’s gross domestic product and employs around 12 percent of Egyptian workers. The industry is also one of the country’s fastest growing sectors, having grown by 10 percent in 2017.
Meanwhile, IFC announced in April that its investments to support Egypt’s private sector recorded around $1 billion during the current fiscal year, in order to boost the Egyptian economy.