SynopsisIFC has joined hands with Egypt's Kandil Steel, extending a $25 million loan to support its financial stability, job creation, and carbon reduction efforts. Kandil Steel, a significant player in the steel industry across the Middle East and Africa, will utilize the loan to meet its working capital needs and secure raw materials for high-quality steel production. Additionally, IFC will offer guidance on implementing a decarbonization program. This partnership contributes to Egypt's economic diversification and aligns with national directives to enhance the manufacturing industry.ArticleIFC, the International Finance Corporation, has forged a strategic partnership with Egypt's prominent steel manufacturer, Kandil Steel, aimed at fortifying the company's financial robustness, boosting job creation within the private sector, and embarking on a journey towards reducing carbon emissions. Kandil Steel, a leading downstream re-roller in the Middle East and Africa, will receive a substantial $25 million loan from IFC, primarily intended to address its burgeoning working capital requirements and secure essential raw materials vital for the production of top-tier steel products.Moreover, IFC's involvement will extend beyond financial support, as it will offer advisory assistance to aid Kandil Steel in formulating and implementing a comprehensive decarbonization program. This program is designed not only to reduce carbon emissions but also to enhance the company's overall environmental and social practices, underlining a commitment to sustainability.Egypt, the largest producer of crude steel in the Middle East and North Africa, is profoundly reliant on the steel industry for its economic vitality. In this context, Kandil Steel plays a pivotal role, ranking among Egypt's top ten exporters, engaging in trade with over 40 countries spanning Africa, Europe, the Middle East, and North America. With a workforce of more than 1,000 employees, Kandil Steel significantly contributes to Egypt's economic diversification, export capabilities, and import substitution strategies.Amr Kandil, the CEO of Kandil Steel, expressed his optimism about the partnership, emphasizing its significance in propelling sustainable growth. He outlined the company's ambitious plans to ramp up production from 500 to 800 thousand tons of steel by the end of 2024. He also noted the importance of IFC's financing amid the challenging local and global economic landscape, which will not only support the company's expansion into export markets but also align with Egypt's national directive to bolster the manufacturing industry's value addition to the economy.Cheick-Oumar Sylla, IFC Regional Director for North Africa and the Horn of Africa, highlighted the potential for export-driven economic growth in Egypt stemming from this collaboration. He underscored the pivotal role this project would play in meeting the surging demand for steel products in Egypt and various export markets, concurrently contributing to the decarbonization of the manufacturing industry.This strategic investment by IFC aligns seamlessly with the World Bank Group's Country Partnership Framework for Egypt FY23-27, focusing on job creation within the manufacturing sector and enhancing resilience in the face of economic challenges. IFC's extensive portfolio, covering diverse sectors such as finance, climate action, infrastructure, healthcare, and gender inclusion, underscores its commitment to fostering economic growth and sustainability.ConclusionThe partnership between IFC and Kandil Steel holds the promise of fortifying Egypt's position in the steel industry, fostering economic growth, and embarking on a journey toward environmental sustainability. This collaboration embodies a shared commitment to resilience and carbon reduction, aligning with global efforts to address climate change.