$10 Million Investment by IFC in Globaltronics to Improve Energy Efficiency in Egypt

IFC, a member of the World Bank Group, announced $10 million investment in Globaltronics the main supplier and manufacturer of electricity smart grid solutions to the Egyptian market. This investment aims to help Globaltronics expand installation of digital prepaid and smart electricity meters in Egyptian homes.

Globaltronics is a regional market leader in home-grown manufacturing and product technologies. Its footprint expands over several manufacturing facilities in Egypt and Saudi Arabia, employing hundreds of local talents. The new investment will help Globaltronics set up a new manufacturing facility in Saudi Arabia and increase its investment in research and development to grow exports and develop new products

Globaltronics vision is consistent with the Egyptian government energy reforms to improve accuracy in billing, give consumers more payment options and provide consumers with better information about their energy use in order to encourage savings.

Egypt is a priority country for IFC in the region. IFC’s commitments in Egypt total over $4 billion since 2005, including financing mobilized from other investors. The new financing will enable Globaltronics SAE to support government plans to replace outdated meters with prepaid and smart digital meters as part of ongoing energy reforms.

Prepaid digital meters have many features like, improving billing accuracy, offering more convenient payment options, reducing energy consumption by helping consumers track their energy use.

“We are glad to have the IFC as a partner in Globaltronics. We look forward to investing and growing our business in Egypt and to continue expanding in the Middle East and Africa” Dr. Hany Assal, founder and chairman of Globaltronics.

As well as supporting manufacturing, the project is part of the World Bank Group’s strategy to help Egypt optimize its overall domestic electricity consumption, which in turn will help the government reduce subsidies to the energy sector.

“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” Walid Labadi, IFC’s Country Manager for Egypt, Yemen and Libya.