IFC Supports Expansion of Leading Kyrgyz Packaging Producer
In Washington, DC:
Carmen Powell
Phone: +1 (202) 473 4982
Email: cpowell@ifc.org
In Belgrade:
Slobodan Brkic
Phone: +381 11 3023 750
E-mail: sbrkic@ifc.org
Washington DC, June 27, 2007—IFC,
the private sector arm of the World Bank Group, has signed an agreement
with the Kyrgyz Republic’s Magic Box to help the company expand its operations
and meet the growing demand for packaging products in the food, beverage,
and other industries in Central Asia. The $1.5 million loan will help double
the company's cardboard packaging and label-printing activities, making
Magic Box one of the strongest industry players in the region.
To address the need for more capital investments, IFC's support will encourage
private and foreign direct investment. Through this project, the
Corporation will also help the agribusiness and manufacturing sectors,
which require high-quality packaging materials to support their domestic
and export operations.
“Our investment, the first in the Kyrgyz manufacturing sector in the past
two years, fits well with the country's economic reform agenda, which includes
sustainable growth of the private sector,” said IFC's Director for South
Europe and Central Asia, Shahbaz Mavaddat. He added that, “Through this
investment, IFC will be supporting both domestic and foreign direct investment
in a high value-added industry, where the majority of the demand is still
met by imports. We are happy to support a successful Turkish businessman
in his expansion in Central Asia in order to extend his reach.”
“We are pleased with the progress that Magic Box has made over the years,”
said Dimitris Tsitsiragos, IFC Director for Global Manufacturing and Services.
“This investment emphasizes the importance of promoting private
sector development and our ongoing commitment to support emerging economies
that want to modernize and grow quickly.”
About IFC
IFC, the private sector arm of the World Bank Group, promotes open and
competitive markets in developing countries. IFC supports sustainable
private sector companies and other partners in generating productive jobs
and delivering basic services, so that people have opportunities to escape
poverty and improve their lives. Through FY06, IFC Financial Products has
committed more than $56 billion in funding for private sector investments
and mobilized an additional $25 billion in syndications for 3,531 companies
in 140 developing countries. IFC Advisory Services and donor partners have
provided more than $1 billion in program support to build small enterprises,
to accelerate private participation in infrastructure, to improve the business
enabling environment, to increase access to finance, and to strengthen
environmental and social sustainability. For more information, please visit
www.ifc.org.
About Magic Box
Magic Box, established in 2004, is a leading producer of cardboard packaging
in the Kyrgyz Republic. It is owned by Muammer Akkaya, a Turkish entrepreneur
with a vision to seize the opportunities in the growing Central Asian market.
As chairman of the Kyrgyz-Turkish Businessmen’s Council, he oversees $300
million of direct foreign investment by Turkish corporations in the Kyrgyz
Republic. Magic Box produces small cardboard boxes for cookies, pasta,
tea, and other consumable products.
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