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 US$1.5mn 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,” says IFC’s Director for South Europe and Central Asia, Shahbaz Mavaddat. He adds 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,” adds Dimitris Tsitsiragos, IFC director for global manufacturing and services. “This investment emphasises the importance of promoting private sector development and our ongoing commitment to support emerging economies that want to modernise and grow quickly.”


Magic Box, established in 2004, is a leading producer of cardboard packaging in the Kyrgyz Republic. It is owned by Muammer Akkaya, a Turkish entrepren €
with a vision to seize the opportunities in the growing Central Asian market. As chairman of the Kyrgyz-Turkish Businessmen’s Council, he oversees US$300mn 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.