The fund is dedicated to expanding the company’s production and installation of prepaid smart electric meters in support of the government’s energy reforms, which will improve the accuracy of power bills and provide consumers with numerous payment options, the IFC noted in a press release.
The investment will support government energy reforms to improve accuracy in electricity billing, whilst enabling the company to support government plans to replace outdated meters. These will see new prepaid, smart digital meters installed as part of ongoing energy reforms in the country.
Prepaid digital meters improve billing accuracy and offer more convenient payment options. Prepaid meters also contribute to overall reduced energy consumption by making it easier for consumers to track their energy use.
The IFC financing will also give consumers more payment options, and provide consumers with improved information about their energy use to encourage savings.
The investment will also help Globaltronics set up a new manufacturing facility in Saudi Arabia, and increase its research and development investments to grow exports and develop new products.
Globaltronics Founder and Chairperson Hany Assal said, ‘We look forward to investing and growing our business in Egypt and to continue expanding in the Middle East and Africa.
As well as supporting manufacturing, the project is part of the World Bank Group’s strategy to help Egypt optimise its overall domestic electricity consumption, which in turn will help the government reduce subsidies to the energy sector.’
IFC’s Country Manager for Egypt, Yemen and Libya, Walid Labadi, said, ‘Egypt’s electricity consumption has witnessed an increase in growth in recent years and is likely to accelerate further.
This project is part of IFC’s strategy to support the government in its reforms of the sector and boost energy efficiency, while also helping a local company expand in the region and diversify its offering.’
Egypt is a priority country in the region for the IFC, and has undertaken commitments in Egypt totalling over $4bn since 2005, including financing mobilised from other investors.
Liked this article? Subscribe to DealStreet Africa News, our regular email newsletter with the latest news, deals and insights from Africa’s business, economy and more. SUBSCRIBE HERE