The European Bank for Reconstruction and Development (EBRD) is providing 200 million Egyptian pounds (€23.4 million) to Egyptian food producer Faragalla in Egypt, to boost its financial capabilities and production capacities, the bank announced in a statement released on November 24th. Agribusiness remains an important sector of Egypt's economy, driven mostly by family-owned businesses which face limited access to longer-term financing. The EBRD funds will support the permanent working capital needs of the company, helping to realise the full potential of its newly installed capacities. In addition, the funds will assist in expanding Faragalla's production activities, with the aim of capturing a greater share of the growing local market and supporting exports to regional and international markets. "We are pleased to provide this much needed long-term financing to Faragalla to help increase the available working capital. Boosting Egypt's agribusiness sector is part of the Bank's strategy as it plays an important role along the food value chain and in economic growth." said Philip Bennett, the First Vice President of the EBRD. Meanwhile, Farag Amer, Chairman of Faragalla Group, said: "We are happy about this collaboration between Faragalla Group and the EBRD. This investment is just the beginning of what we hope will be a continuous cooperation in the future. The Group also aims to implement corporate governance and to apply sound management strategies,with the EBRD's help." Funded by the EU's Neighbourhood Investment Facility (NIF), technical capacity activities will focus on strengthening corporate governance and improving the sales and marketing functions. The EBRD made its first investment in Egypt in September 2012 and has built up a cumulative commitment of more than €1 billion to date. The EBRD is committed to providing long term support for the Egyptian economy with a programme that focuses on the financial, agribusiness, municipal, infrastructure, transport and telecoms sectors, and through dedicated credit lines to small and medium enterprises (SMEs) through the local banks. Established in 1995 by Mohamed Farag Amer and his family, Faragalla is now a leading Egyptian producer of juice, dairy and processed vegetables. It is part of Faragalla Group, one of the country's largest diversified food companies.
