The FINANCIAL — IFC, a member of the World Bank Group, is providing a loan of $12 million and mobilizing an $8 million loan from PROPARCO, a French development finance institution, to help Al Ahram for General Trading, a leading bottled water manufacturer known for the ‘Life Water’ brand in Iraq, expand and strengthen production, boosting private sector growth and the country’s non-oil sector.
The long-term loan from IFC and PROPARCO will help Al Ahram expand existing plants in Zakho and Suleymaniyah in the Kurdistan Region of Iraq, enabling the company to add a new water bottling line. They will also enable Al Ahram to invest in production and strengthen job security for employees and suppliers, according to IFC.
“This investment will help us grow our business, provide more high quality products for our consumers, and train our employees to international standards,” said Abdul Rakib Nazer, Executive Board Member of Al Ahram. “We are looking forward to building a long-term relationship with IFC and PROPARCO as we continue to expand.”
The loan will also allow Al Ahram to import the latest processing and packing equipment, boosting technological know-how, and increase the quantity of beverage products in the Iraqi market produced to global food safety standards.
“Our investment in Al Ahram is part of our overall strategy in Iraq to support local players in the non-oil sector, encourage private sector development, and promote job creation,” said Mouayed Makhlouf, IFC Director for the Middle East and North Africa. “We hope our commitment to this project will also encourage other international and domestic investors to invest in Iraq.”
Over the next few years, IFC is planning to step up its investment and advisory services in Iraq, investing $100-130 million per year, in priority sectors such as infrastructure and financial markets.
“PROPARCO is pleased to support a company such as Al Ahram, which plays a key role in providing affordable drinkable water to the Iraqi population,” said Julien Lefilleur, PROPARCO Head of Manufacturing, Agribusiness, and Services. “This financing will not only support its production growth but will also create hundreds of additional jobs. In fragile situations, the private sector is crucial to development and stability.”
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