Egypt seeks IFC backing for $4bn refinery and mining expansion drive

Egypt’s Ministry of Petroleum and Mineral Resources is currently implementing a plan to modernise existing refineries through six projects with total investments exceeding $4bn, Economy Plus reported on February 17, citing Petroleum Minister Karim Badawi.

The remarks came during a meeting with Ethiopis Tafara, Vice President of the International Finance Corporation (IFC) for Africa, and Cheick-Oumar Sylla, the institution’s Regional Director for North Africa and the Horn of Africa. The talks took place on the sidelines of the Sustainable Finance Forum.

During the meeting, Badawi outlined investment and financing opportunities in petroleum refining, petrochemicals and value-added industries, as well as in mining and the exploitation of mineral resources. He explained the reforms and incentive measures introduced over the past 18 months to improve the investment climate in the oil and gas sector, including a commitment to settle outstanding dues to foreign partners engaged in exploration and production activities.

Discussions also covered recently introduced investment incentive packages aimed at restoring investor confidence and supporting domestic output. 

For his part, Tafara said the IFC is committed to continuing its broader partnership with Egypt and strengthening cooperation with the petroleum ministry. Mining was identified as a priority sector for the corporation in Africa, with an emphasis on maximising value addition from mineral resources. Both sides agreed to hold further technical meetings in the near term to define priority areas for cooperation.

Egypt holds the largest refining capacity in Africa, with a total nameplate capacity of approximately 840,000 barrels per day (bpd) across eight major refineries. To achieve self-sufficiency, the government is investing over $7bn in modernisation projects, including a major expansion of the MIDOR refinery to increase its individual output to 160,000 bpd.