IFC considers $40 million loan for Sawiris family’s Nile Sugar expansion in Egypt

International Finance Corporation (IFC) is considering a $40 million senior loan to support the expansion of Egypt’s Nile Sugar Company, a beet sugar refinery founded by the family of Egyptian telecom billionaire Naguib Sawiris.

The proposed financing is expected to help expand domestic sugar production in Egypt by strengthening agricultural supply chains and increasing sugar beet cultivation, as the country seeks to reduce dependence on imported sugar.

IFC’s investment package would include $20 million from its own account and another $20 million mobilized from development finance partners. The loan would be extended to Nile Agriculture Company, with a corporate guarantee from Nile Sugar.

Expanding beet farming in southern Egypt
The investment will finance the development of 13,711 feddans (about 5,760 hectares) of farmland in Minya, southern Egypt, dedicated to sugar beet cultivation. The farmland expansion will support irrigation systems, farm machinery, logistics infrastructure, and working capital needed to increase agricultural productivity.

The initiative forms part of a $68.5 million investment program led by Nile Agriculture Company aimed at strengthening Egypt’s domestic sugar supply chain. By expanding local beet production, the project could help meet rising sugar demand while reducing Egypt’s reliance on global imports.

Supporting 25,000 farmers through out-grower programs
Beyond industrial processing, the Nile Sugar expansion will support smallholder farmers through an extensive out-grower program.

The initiative is expected to benefit around 25,000 farmers, providing: sugar beet seeds access to agricultural credit, transportation services, and technical farming support. Training programs will also promote climate-smart agriculture techniques, improved harvesting practices, and better post-harvest management to reduce crop losses.

Climate finance and sustainability goals
IFC estimates that 54% of the project’s financing will qualify as climate finance, with a strong focus on climate adaptation measures aimed at improving agricultural resilience.

The project will also introduce higher-yield sugar beet varieties and modern production techniques, helping increase crop productivity while reducing environmental pressure on farmland.

Strengthening Egypt’s sugar industry
Founded in 2006, Nile Sugar has grown into one of Egypt’s leading producers of white sugar and related by-products, including molasses and beet pulp. The company operates as a joint-stock enterprise, with Naguib Sawiris and his wife, Yousriya Loza, controlling both directly and indirectly a combined 99.6% stake.

If approved by IFC’s board, the investment would further expand Egypt’s beet sugar processing capacity while supporting rural employment and modernizing the country’s agricultural sector. The financing would also highlight the growing role of development finance institutions in scaling sustainable agribusiness projects across emerging markets.