IFC loans Egypt’s El Sewedy $150 million for more access to renewable energy in Africa
The International Financial Corporation (IFC), a member of the World Bank Group, announced on Wednesday a new investment worth $150 million in Egypt’s El Sewedy Electric.
IFC’s $150 million loan, alongside First Abu Dhabi Bank and Europe Arab Bank as participants, will support in the expansion, modernisation, and enhancement of El Sewedy’s sustainable manufacturing operations, and to increase its access to renewable energy in several countries across Africa.
It will also support the Egyptian company finance new solar energy facilities in Africa, improve its energy efficiencies at existing manufacturing facilities, and build and acquire new plants globally, as and when needed, to increase its competitive edge on a global scale, an IFC statement read.
Supporting projects and South-South investments by companies that deliver energy solutions is a major part of IFC’s strategy in Africa, where access to power remains limited, the statement added.
“We welcome the opportunity to work collaboratively with IFC to make a significant impact on sustainable infrastructure development for everyone.” El Sewedy’s president and chief executive Ahmed El Sewedy said.
“We are supporting our customers in addressing the transition to a low-carbon economy through our renewable projects and energy-efficient products, and we are looking forward to further aligning our activities to the global Sustainable Development Goals.”
“This announcement demonstrates our commitment towards our robust expansion and growth plans which meet our strategic vision and goals. Doing this in accordance with IFC standards and guidelines will serve as a benchmark for other regional and international players.” El Sewedy concluded.
IFC’s investment is expected to help El Sewedy Electric reduce greenhouse gas emissions by the equivalent of more than 60,000 tons of carbon dioxide annually through solar plants and the company’s own increased efficiencies in its manufacturing facilities across the countries in which it operates.
“Improving access to energy—especially clean energy—brings numerous social and economic benefits,” Sérgio Pimenta, IFC’s vice president for Africa, said.
“With Egypt preparing to host COP27 later this year, IFC’s partnership with El Sewedy is another step towards expanding affordable, renewable energy to consumers across Africa. We are pleased to see El Sewedy taking the lead in greening the infrastructure sector in Egypt and around the world.” Pimenta added.
The signing ceremony was attended by Egyptian Minister of International Cooperation Rania al-Mashat.
“We are pushing the frontiers of collaboration with multilateral and bilateral partners to further strengthen the Public Private Partnership. The structural reforms have helped Egypt to scale up private sector engagement in sustainable infrastructure projects.” al-Mashat said.
“The IFC has been a pivotal partner in financing the Egyptian Green transition through financing the private sector,”
Since 2016, IFC has invested and mobilised $1 billion for climate projects in Egypt, including a $100 million financing of the issuance of Egypt’s first private sector green bond in 2021 by the Commercial International Bank (CIB-Egypt).
