ICD considers financing projects worth $45mln in Egypt

Investments in Egypt include financial, manufacturing and metals, as well as energy sectors

  
An employee counts Egyptian pounds at a foreign exchange office in central Cairo, Egypt, March 20, 2019. Image used for illustrative purpose.

An employee counts Egyptian pounds at a foreign exchange office in central Cairo, Egypt, March 20, 2019. Image used for illustrative purpose.

REUTERS/Mohamed Abd El Ghany

Cairo – Mubasher: The Islamic Corporation for the Development of the Private Sector (ICD), the private sector arm of the Islamic Development Bank (IsDB), has so far allocated a total of $230 million to Egypt, the CEO Ayman Amin Sejiny revealed.

The ICD is currently considering to finance development projects worth more than $45 million in the most populous Arab nation, Sejiny said in an interview with Mubasher.

He noted that the corporation’s investments in Egypt include financial, manufacturing and metals, as well as energy sectors.

Moreover, work is underway for building a beet sugar production and refining facility in El-Sharkia governorate to narrow the gap between supply and demand for white sugar, he revealed.

Funding projects in Egypt

The ICD funded the oil and gas company Advanced Energy Systems (ADES Egypt) with around $20 million and also contributed to establishing Enmaa Finance Company as an Egyptian joint stock company with a paid-up capital of EGP 40 million which increased to reach EGP 163 million.

The corporation also took part in financing two solar power plants in Benban in Aswan; the ICD financed the first one, which includes a portfolio of six 50-megawatt (MW) AC solar plants, with $25 million and the second one, a 50 MW PV solar power plant project, with $28.5 million.

Coronavirus crisis

As for its role in supporting small- and medium-sized enterprises (SMEs) in responding to the coronavirus crisis, the CEO said that the ICD approved the provision of $250 million in emergency funding to relieve the impact of the pandemic on the private sector.

The funding was much needed for SMEs to continue its operations amid the pandemic, especially in countries that suffer from financial restrictions and challenges in aiding companies that were hit by the crisis.

The ICD also plans to strengthen the capabilities of SMEs through technical aid programmes designed to enhance the efficiency, productivity, and technological capabilities of SMEs in the face of future shocks.

It is noteworthy to mention that the authorised capital of the ICD reaches $4 billion. The shareholders include the IsDB (50%), 55-member countries (30%), and five financial institutions from the member countries (20%).

Future projects

The ICD is looking forward to building partnerships with private-sector companies and corporations in various sectors in member countries, especially infrastructure and SME financing projects, the CEO added.

It aims to facilitate access to Islamic finance and expand Islamic capital markets in member countries.

Source: Mubasher Exclusive

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