USIDFC to Provide $430 Million in Insurance to Strengthen Energy Security in Egypt
During the Investment for Africa Forum, an announcement was made about the commitment of the US International Development Finance Corporation (DFC) to give $430 million in insurance to support the natural gas project in Egypt.
This is yet another critical investment that will have a huge economic impact on the people of Egypt.
The insurance will be used to restore an EMG pipeline running from Israel and under the Mediterranean Sea toward Egypt. And aside from that, it will aid with the transportation of natural gas for over 15 years.
According to Adam Boehler, CEO of the USIDFC, the insurance contracts will be a massive help in enhancing Egypt’s energy security. And enhanced energy security means improved quality of life, stronger trade, and better investments, leading to a prosperous and stable country.
US Ambassador to Egypt, Jonathan Cohen, thinks the same and shows full support in the American company’s investment. According to him, the funding will help provide an affordable and reliable energy source for Egypt’s residents and other people throughout the region. But aside from that, it can increase job creation and skyrocket economic growth.
Egypt aims to become a regional energy hub. Aside from the financial support from the US, Egypt is gaining confidence in achieving a growing cash flow and a strong footing in the long-term export market because of recent huge deals.
The EMG acquisition and the Dolphinus gas sales contracts are just some of the milestones toward Egypt’s goal of being a thriving gas exporter. And now, the natural gas project funded by the USIDFC will enable them to export gas to different parts of Europe and global markets as well.
Boehler was in the Investment for Africa Forum to strengthen relationships with key regional partners, discuss investment opportunities, and highlight the commitment of the US to the region.
The board of directors of the Overseas Private Investment Corporation (OPIC) originally approved these transactions in December 2018. However, there’s a new US government agency that merges and modernizes the Development Credit Authority (DCA) of OPIC and USAID.
The DFC is far more capable of advancing US foreign policy and addressing development challenges, thanks to their new financial tools, and it has more than doubled the investment cap of $60 billion. The DFC is funded by the state, so they can carry on with new investments and exercise their development tools.