The financing package will support the company's needs for raw materials and boost its production of high-quality steel.

According to the agreement, the IFC will provide an advisory role to support the company's projects, which focus on reducing carbon emissions.

Kandil Steel will use the loan to invest in advanced technologies that promote sustainable steel production. By adopting environmentally friendly practices, the company aims to minimize its ecological footprint and contribute to Egypt's commitment to sustainable development.

"Our partnership with IFC supports expansion plans to increase production from 500,000 to 800,000 tons of steel by the end of 2024," said Amr Kandil, CEO of Kandil Steel.

The company is one of the top 10 exporters in Egypt, trading with more than 40 countries in Africa, Europe, the Middle East, and North America.

The IFC, a member of the World Bank Group, has invested a total of $7 billion in Egypt, including $3.2 billion since 2018.

Egypt, the largest crude steel producer in the Middle East and North Africa, witnessed decreasing steel production since the beginning of the year as a result of a foreign currency shortage.

In 2022, Egypt produced 9.8 million tons of steel, making it the largest steel producer in Africa and the second largest in the Middle East and North Africa region, according to a report by Fitch Solutions.