High-Level Delegation Led by Egypt’s Ministers and Acting CEO of ICD Celebrate Success of Eastern Sugar Company Factory in Sharqiya

Hala El-Said: The success story of the Eastern Sugar Company embodies a unique model of investment and development partnership that brings together the government and private sectors, Egyptian banks, and Arab and international financing institutions.

Eng. Hani Salem Sonbol: We are proud of the significant societal impact that the project had on Egyptian society, creating more than 700 job opportunities and supporting 30,000 male and female farmers. Notably, the project’s export value soared to over 60 million US dollars.

A distinguished delegation, comprising H.E Dr. Hala El-Said, Minister of Planning and Economic Development and Governor of Egypt at the Islamic Development Bank, along with H.E Dr. Ali El-Moselhi, Minister of Supply and Internal Trade, and Engineer Hani Salem Sonbol, Acting CEO of the Islamic Corporation for the Development of the Private Sector (ICD), an esteemed member of the Islamic Development Bank Group (IsDB), conducted a comprehensive inspection visit to the Al-Noran Sugar Factory in Salhiya, Sharkia Governorate, Arab Republic of Egypt.

The visit was in the presence of Dr. Mamdouh Ghorab, Governor of Sharkia, and Dr. Shihab Marzban, Chairman of the Company’s Board of Directors, as well as representatives of the company’s executive management.

The Eastern Sugar Company factory stands as a testament to successful collaboration. The ICD, along with a consortium of international financial institutions, Banque Misr, and Egyptian private sector entities, played a pivotal role in supporting this project, which significantly contributes to Egypt’s food security.

Spanning over 420 acres in the new city of Salhiya, the factory has become a remarkable success story. It has not only boosted Egypt’s beet production capacity to approximately 2.5 million tons but has also generated substantial export revenue exceeding USD 60 million. Furthermore, the project has created significant employment opportunities, with an estimated 700 direct jobs and over 30,000 indirect jobs.

The ministers and the acting CEO of the ICD observed the manufacturing process at the Eastern Sugar Company, overseeing the manufacturing of three key products year-round: primary product being white sugar, alongside two by-products, namely animal feed and molasses. These additional products are vital exports, contributing significantly to Egypt’s foreign currency reserves, thereby bolstering the nation’s economy.

The company’s white sugar production alone accounts for approximately 15% of Egypt’s beet sugar output and around 11% of its total sugar production from both cane and beets. Additionally, the company cultivates 80,000 acres annually for beet crops, yielding 2 million tons of beets.

For her part, Minister Hala El-Said highlighted the exceptional success story of the Eastern Sugar Company, illustrating a distinctive model of investment and developmental collaboration. This collaboration intertwines various entities including governmental sectors, private enterprises, Egyptian banks, and Arab and international financial institutions such as the Arab Fund for Economic Development and the Islamic Corporation for the Development of the Private Sector, an esteemed member of the Islamic Development Bank Group. .

Notably, the company operates within the highly promising and strategic sugar industry, actively meeting local market demands and increasingly contributing to raw sugar exports. Furthermore, El Said emphasized that the company’s achievements pave the path for extensive expansion across agricultural investment and complementary industries.

She underlined the Egyptian government’s staunch support for such investment and developmental partnerships, aligning with its commitment to fostering the private sector and cultivating an environment conducive to sustaining its pivotal role in driving comprehensive and sustainable development efforts.

Engineer Hani Salem Sonbol, CEO of the International Islamic Trade Finance Corporation and Acting CEO of the Islamic Corporation for the Development of the Private Sector, noted, “This project exceeds 6 billion Egyptian pounds in estimation, marking it as one of the most significant development undertakings within the Islamic Corporation for the Development of the Private Sector.”

He further emphasized, “We take pride in the project’s positive societal impact, having generated over 700 direct employment opportunities, supported 30,000 male and female farmers, and facilitated exports valued at over 60 million US dollars.”

Concerning the ITFC, Sonbol highlighted the institution’s commitment to bolstering food security in the Arab Republic of Egypt. Under this initiative, the corporation executed a fresh financing endeavor, EGY-228, in support of the General Authority for Supply Commodities. This operation entailed opening credits amounting to 500 thousand tons of sugar, totaling 279.1 million US dollars, to address a portion of the Egyptian market’s sugar requirements from May to August 2024.

Dr. Shihab Marzban, Chairman of the Board of Directors of the Eastern Sugar Company, affirmed the company’s remarkable success story, attributable to the collaborative efforts of a diverse array of shareholders and investors. These include international financial institutions such as the Islamic Corporation for the Development of the Private Sector and the Arab Fund for Development, as well as contributions from the private sector represented by Engineer Sadiq Al-Suwaidi and Al-Nouran Group, the public sector represented by the Integrated Sugar Company, and the banking sector, represented by Banque Misr.

Marzban elaborated that since its inception, the company has played a pivotal role in addressing Egypt’s sugar deficit caused by a consistent population surge. The company’s annual production includes 250 thousand tons of white sugar derived from sugar beets and raw sugar refining, along with 100 thousand tons of animal feed and 100 thousand tons of molasses. Notably, the fodder and molasses are exported abroad, thereby amplifying Egyptian exports and furnishing vital hard currency to fortify the national economy.

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