Addis Ababa, Ethiopia, July 9, 2010
— IFC Vice President for Business Advisory Services Rachel Kyte said today that IFC will continue its support for Ethiopia’s sustainable economic growth by working more closely with the country’s government, and private sector to create opportunities for entrepreneurs and businesses. IFC is a member of the World Bank Group.
Kyte is in Ethiopia on a two-day visit to explore how IFC can contribute more to Ethiopia’s private sector development. She is meeting with senior government officials, private sector clients and development partners.
“Ethiopia is a country of high potential, including in agriculture, manufacturing, renewable energy and services,” Kyte said. “IFC is committed to assist Ethiopia’s government in creating an enabling environment for business and to support private sector investment in key sectors of the country.”
Since opening a new representative office in Ethiopia in November 2008, IFC has steadily increased its activities in the country. Recent projects include a $11 million investment to support gold exploration at the Tulu Kapi Gold Project in Western Ethiopia, and a $55 million investment in Derba Midroc Cement Company to help address the country’s cement shortage.
IFC is also finalizing a $20 million guarantee scheme to increase financing for specialty coffee farmers under the Ethiopian Coffee Initiative, run by Technoserve, and has launched a program with the Ethiopia Commodities Exchange to design financial instruments and advocate for any regulatory changes needed so that banks can accept warehouse receipts as collateral for loans.
IFC’s strategy in Ethiopia focuses on proactively developing new investment projects, supporting public-private partnerships that promote economic growth, and mobilizing direct investments to key sectors of the economy, including agribusiness, financial services, health and education, infrastructure, manufacturing, and tourism.
IFC’s current committed investment portfolio in Ethiopia totals approximately $70 million. IFC is also conducting several advisory services programs provide support to improve the investment climate, and promote better access to finance through measures such as the warehouse receipt finance program, to name a few.
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing capital for private enterprise, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $14.5 billion in fiscal 2009, helping channel capital into developing countries during the financial crisis. For more information, visit
www.ifc.org
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