EGYPT – The International Finance Corporation (IFC), alongside First Abu Dhabi Bank and Europe Arab Bank, have extended a US$150 million loan to Egyptian electrical components manufacturer, Elsewedy Electric.
Elsewedy will use the loan to support its expansion, modernization, and enhancement of their sustainable manufacturing operations.
According to the IFC, the finance will help increase access to renewable energy in several countries across Africa.
“We welcome the opportunity to work collaboratively with IFC to make a significant impact on sustainable infrastructure development for everyone,” said Ahmed El Sewedy, the Chief Executive Officer (CEO) of Elsewedy Electric S.A.E.
“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.”
The DFIs will finance Elsewedy Electric’s new solar energy facilities in Africa, finance improvement on energy efficiencies at existing manufacturing facilities.
The parties will also finance the company’s acquisition of new plants globally, to increase its competitive edge on a global scale.
“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,” Ahmed added.
IFC’s investment is expected to support Elsewedy Electric S.A.E reduce its greenhouse gas emissions by the equivalent of more than 60,000 tons of carbon dioxide annually through solar plants, and Elsewedy Electric’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,” said Sérgio Pimenta, IFC’s Vice President for Africa.
“With Egypt preparing to host COP27 later this year, IFC’s partnership with ELSEWEDY is another step towards expanding affordable, renewable energy to consumers across Africa. We are pleased to see ELSEWEDY taking the lead in greening the infrastructure sector in Egypt and around the world.”
Dr. Rania A. Al-Mashat, Egypt’s Minister of International Cooperation said that they 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. The IFC has been a pivotal partner in financing the Egyptian Green transition through financing the private sector,” Rania added.
Since 2016, IFC has invested and mobilised US$1 billion for climate projects in Egypt, including a US$100 million financing of the issuance of Egypt’s first private sector green bond in 2021 by the Commercial International Bank (CIB).
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