Brussels, 20/09/2012 (Agence Europe) - The EBRD has announced the launch its first investments in emerging Arab democracies. According to a press release, the EBRD's Board of Directors held a meeting on Tuesday 18 September and approved three projects in Jordan, Tunisia and Morocco. Investments in Egypt are expected to be submitted shortly.
A $30 million trade finance line for InvestBank in Jordan, which will facilitate their international trade finance activities, will be made. This facility will support InvestBank as it develops new products and is aimed specifically at small and medium-sized enterprises (SMEs). One of the next projects on the Bank's agenda is a $100 million investment in the development of a power plant near Amman; however, this project has not yet been officially announced.
There is also a €20 million commitment to the Maghreb Private Equity Fund III sponsored by AfricInvest-TunInvest, one of the leading local private equity firms in Tunisia and Morocco. The EBRD financing will be used to make equity and equity-related investments primarily in small and medium-sized companies in the SEMED region (bank activities geared to South and East Mediterranean).
A €20 million loan in two equal tranches to Morocco's Société Générale Marocaine de Banques (SGMB) for on-lending to micro-, small- and medium-sized enterprises (MSMEs). The EBRD is also providing SGMB with a €5 million trade finance facility to support its clients' trade business.
These projects are the first in a series of investments in the southern and eastern Mediterranean (SEMED), which are expected to be running at as much as €2.5 billion annually by 2015.
The EBRD's action takes place at the same time as directly funded EU projects through the FEMIP. It explained that “development of the private sector is at the heart of the EBRD's response to the demand for economic improvements in the new region, promoting the development of small business, which can help to create jobs in an area where youth unemployment in particular is a major social problem”.
Other priorities for the region include “helping to enhance the quality of people's lives by improving local services” and “preparation for investments of up to €200 million across the region by the end of this year”. The EBRD has opened offices in all four SEMED countries and is in the process of appointing managers to lead the national teams; recruitment is now open. (FB/trans.fl)