The European Bank for Reconstruction and Development (EBRD), the European Union (EU), and the Green Climate Fund (GCF) launched two programs to boost green finance and improve value chains, aiming to foster a green recovery of the Egyptian economy. Working with the EBRD’s local partner banks, the programs cumulatively worth EUR 220 million will offer sub-loans to businesses for green investments in energy, water, and resource-efficient solutions. The programs are supplemented by EU grants of more than EUR 30 million and GCF concessional co-financing and technical assistance of up to USD 24 million.
The new EUR 70 million Green Value Chain program will help small and medium-sized enterprises (SMEs) to invest in advanced technologies and climate mitigation and adaptation solutions that improve their competitiveness and foster the development of green value chains. The second program is meant to make up to EUR 150 million of green finance available to SMEs across the agricultural, construction, commercial, and manufacturing sectors. With the loans, SMEs can, for instance, invest in energy and resource-efficient production machinery, renewable energy technology, agricultural irrigation, and rainwater harvesting equipment. Heike Harmgart, EBRD Managing Director for the southern and eastern Mediterranean region, said:
“Egypt has great potential to build a low-carbon future and we are proud to work with our international partners to support the country in achieving a green economic recovery. The private sector is a key player in this process and has strong demand for green finance.”