By Evline Meshreky
Tuesday its insurance of Elif’s investments to build a new packaging plant that it says will create hundreds of jobs and increase investment.
MIGA, the political risk insurance and credit enhancement arm of the World Bank Group, is providing guarantees of $26.4m. The amount covers an equity investment by Elif Global Ambalaj in Elif Global Packaging in Egypt and loan guarantees from Elif Global to the project lenders.
The project will create approximately 300 local direct jobs and support up to 300 indirect jobs, with a further 400 jobs will be created during the project design and construction phase. The company will use its advanced technology and expertise to provide training and knowledge to local workers.
“Especially as our plant in Egypt will be our first constructed outside of Turkey, the availability of MIGA’s insurance was very important for our investment,” said ELIF Group’s CEO Selcuk Yarangumelioglu.
The agreement comes after the Federation of Egyptian Chambers of Commerce (FEDCOC) announced its intentions to suspend trade with Turkey in August 2013. The suspension followed remarks made by Turkey’s Prime Minister Recep Tayyip Erdogan, regarding his disappointment in the Grand Imam for “favouring the leaders of the coup.
MIGA’s insurance covers the risks of transfer restriction, expropriation, and war and civil disturbance. The World Bank Group’s International Financial Corporation (IFC) has also supported the plant’s construction through loans.
In 2012, MIGA announced its support for private investment in Egypt’s oil and gas sector.
Elif is a global supplier in the packaging industry, providing flexible packaging solutions for food and beverage, home care and cleaning, and personal care products.