IFC loans BCI Holding $30 million to expand Egypt, Algeria, Nigeria outputs
The International Financial Corporation (IFC), a member of the World Bank Group, announced on Tuesday providing a $30 million loan for BCI Holding SA Group to help the company expand its production in Algeria, Egypt, and Nigeria.
BCI Holding is a major regional manufacturer and distributor of polyurethane (PU) raw materials, systems, and specialities with headquarters in the UAE.
IFC’s loan aims to contribute to the creation of hundreds of direct and indirect jobs in Egypt, Algeria, and Nigeria.
The loan is also designed to support BCI Holding’s expansion of its existing production facility in Egypt and the commissioning of new factories in Algeria and Nigeria, helping it to develop regional supply chains for PU, a versatile product used in insulation, footwear, packaging, and other industries.
“BCI’s signature technology — used to convert recycled scrap PET into polyester polyol for insulation — has the potential to support circular economy initiatives, which are aimed to build resilience, generate business and economic opportunities, and provide environmental and societal benefits,” IFC statement read.
“Expansion of the production facility in Egypt and building of the two additional factories in Algeria and Nigeria is expected to produce more than 80 direct jobs and several hundred indirect jobs in the supply chain and through employment multiplier effect.”
Ashraf Megahed, IFC’s regional industry manager for manufacturing, agribusiness, and services in the Middle East and North Africa, said: “With the right financing and support, private businesses like BCI Holding SA can create much-needed jobs and drive a green and resilient economic recovery from COVID-19, which has had a profound impact on the Middle East and Africa,”
IFC’s partnership with BCI Holding SA is part of its strategy to combat poverty and create jobs by supporting the growth of the private sector in the Middle East and Africa region, IFC statement said.
With new factories across Africa, the project will also help strengthen regional integration, technology transfer, and the development of regional supply chains, it added.
“Our group has been able to survive and prosper over the past 64 years, despite the challenges in the region, primarily due to our commitment to a holistic view of what constitutes a true positive bottom line. Businesses we invest in and develop must not only be economically feasible, but also socially beneficial and environmentally friendly,” said Ihsan Baalbaki, founder and chairman of BCI Holding.
“The capacity of the PU industry to create meaningful and sustainable job opportunities and add to the Middle Eastern industries’ local content capabilities explains why we continue to invest passionately in it. We are confident our partnership with IFC will further amplify our business’s capacity as a force for good.”
The Baalbaki family has been active in industry, trade, and agriculture since late 1800s.
The family’s businesses centre based on commodity trading and textiles, with a geographic presence in the Middle East.