EBRD Provides $20 Million Loan to Boost Egypt’s Agribusiness Sector through Afia International

EBRD Provides $20 Million Loan to Boost Egypt’s Agribusiness Sector through Afia International

(IN BRIEF) The European Bank for Reconstruction and Development (EBRD) is bolstering Egypt’s agribusiness sector with a $20 million loan to Afia International, a prominent manufacturer of edible vegetable oils and ghee in the country. This financing will primarily support Afia International’s working capital needs and raw material procurement, including bulk crude vegetable oil, thereby contributing to diversifying the company’s funding sources. Amid the global food security challenges resulting from the Ukraine conflict’s impact on food prices, this investment aims to strengthen Egypt’s local value chain by incorporating new local suppliers and elevating quality and operational standards, facilitating expansion into new export markets. Additionally, the EBRD is promoting a gender-sensitive internship program to enhance women’s access to employment and training within Afia International.

(PRESS RELEASE) LONDON, 15-Sep-2023 — /EuropaWire/ — The EBRD is supporting Egypt’s agribusiness sector with a US$ 20 million loan to Afia International, one of the country’s top manufacturers of edible vegetable oils and ghee.

The EBRD financing will support the company’s working capital requirements and the purchase of raw materials, including bulk crude vegetable oil. It will also help the company diversify its financing sources by providing approximately 15 per cent of what it needs annually.

The  war on Ukraine has had a huge impact on global food security, as both Russia and Ukraine are large exporters of key commodities such as wheat and edible oils. It has pushed up global food prices, particularly in the southern and eastern Mediterranean, which relies heavily on food imports and commodities from these two countries.

Through this new investment, the EBRD is helping Afia International diversify and enhance its local value chain by adding new local suppliers and improving its quality and operating standards, which will help it expand into new export markets.

In addition, the EBRD is helping Afia International raise its inclusion standards by promoting a gender-sensitive internship programme that will increase women’s access to employment and training.

Afia International is a fully owned subsidiary of Savola Foods, ultimately owned by Savola Group, a publicly listed company headquartered in Jeddah and one of Saudi Arabia’s leading agribusiness companies with a strong presence in the Middle East and North Africa region and Türkiye.

Since 2012 the EBRD has invested €10.4 billion in 167 projects in Egypt, with almost 57 per cent of its portfolio in private sector projects.

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SOURCE: EBRD