Improving water productivity in Egypt’s sugar beet sector

ILX participated in a syndicated loan originated by IFC to one of Egypt’s largest sugar beet processors, leading in product quality and energy efficiency. The borrower operates exclusively in the B2B segment, supplying a diversified customer base that includes major multinational corporations.

The investment finances the development of approximately 5,760 hectares of land in Minya, Egypt, for sugar beet cultivation along with related infrastructure and equipment to enhance supply chain sustainability. Additionally, 10% of proceeds are used to purchase sugar beets from smallholder farmers. With 54% of the total project costs attributed to climate finance, the investment targets a measurable improvement in water productivity from 8 to 12 kg of sugar per cubic meter by 2031, critical for Egypt’s water-scarce conditions. The project incorporates water-efficient irrigation systems and climate-resilient seed varieties to enable cultivation on reclaimed desert land in Minya, expanding domestic production and strengthening national food security.