IFC MENA investments reach US$3B in 2013

The International Finance Corp. (IFC), a member of the World Bank Group, announced that it committed US$3 billion last year to support economic development in the Middle East and North Africa (MENA).

"IFC combined those investments with a broad range of advisory services to support the region's private sector at a time when many countries are struggling with unemployment and slow economic growth," it said in the press statement.

It added: "IFC’s work helped boost investor confidence, support smaller businesses, and combat climate change, among a host of other important initiatives."

According to the IFC , the US$3 billion committed during 2013, which ended June 30, includes US$914 million mobilised from other investors.

"Governments across the region are facing fiscal constraints and they can no longer carry the burden of economic growth alone," said Mouayed Makhlouf, IFC director for MENA. "IFC has been working hard to unlock the power of the private sector, which has the potential to create jobs, spur development, and provide the economic opportunities people are clamouring for."

As part of those efforts, IFC invested US$647 million to support infrastructure projects across the region, half of which was mobilisation. Investments included US$65 million in financing to help expand cell phone and Internet services in Afghanistan, and a US$70 million investment in Iraq's crucial cement industry.

IFC also provided a US$500 million debt facility for natural gas producer Petroceltic, which will help the company expand operations in Egypt and Algeria.

IFC is spearheading efforts to support small and medium enterprises (SMEs). The organisation invested US$150 million in the MENA SME Facility to boost lending to smaller businesses and lined up US$230 million in funding from other donors and international finance institutions.

Last year, IFC has ramped up its efforts to combat climate change. The organisation signed an agreement with Masdar, a UAE-based company, to provide funding for clean energy projects.