EGYPT – The European Bank for Reconstruction and Development (EBRD) and Commercial International Bank (CIB) have signed agreements for a US$60 million financing package to promote on-lending for green investments and to women-led businesses in Egypt.  

Part of the package is the US$50 million Green Economy Financing Facility (GEFF II), including US$7.5 million in co-financing from the Green Climate Fund (GCF), which will fund investments in climate change mitigation and adaptation technologies and services. 

The financing will support private businesses in various sectors, including agribusiness, manufacturing and services, logistics and distribution, and information and communications technology.

The GEFF II loan will be accompanied by investment incentive grants from the European Union (EU) of up to €5.2 million (US$5.59 m) to encourage the adoption of greener and high-performing technologies and solutions by local micro, small, and medium-sized enterprises (MSMEs) and support the development of resilient supply chains for green equipment.

This marks the third GEFF II credit line the EBRD, GCF, and EU have provided in Egypt to help build a greener, more inclusive, and competitive local economy through financing local MSMEs.

As part of the technical assistance package, CIB will also introduce the use of the Green Technology Selector, the EBRD’s green technology transfer tool, to encourage collaboration by technology manufacturers and vendors to increase the local availability of climate technologies.

Through the GEFF program, the EBRD has invested more than US$240 million in Egypt to support energy efficiency, climate adaptation, and circular economy.

The second part of the US$60 million financing package is a US$10 million EBRD Women in Business loan to promote women’s participation in the economy and provide financial, advisory, training, and mentoring support to female entrepreneurs. 

It focuses, in particular, on women-led small businesses with fewer than 250 employees and less than €50 million (US$53.7m) in annual turnover. The programme covers most sectors and industries.

The two loan agreements were signed at the EU Investment Conference in Cairo, attended by EBRD First Vice President Jürgen Rigterink.

“We are committed to supporting Egypt’s transition to a greener economy and to the stronger participation of women in business by increasing access to finance and intensifying climate adaptation investments alongside our partners from the EU and GCF,” Jürgen Rigterink, First Vice President, EBRD said.

“We hope these programmes will encourage more businesses from the private sector to adopt green, inclusive, and innovative technologies in the country.’’

Egypt is a founding member of the EBRD. Since starting operations there in 2012, the Bank has invested more than €12 billion (US$12.9 billion) in 180 projects across the country. 

The EBRD’s areas of investment include the financial sector, agribusiness, manufacturing, and services, as well as infrastructure projects, such as power, municipal water, and wastewater services, and contributions to the upgrade of transport services‎.

Liked this article? Subscribe to DealStreet Africa News, our regular email newsletter with the latest news, deals and insights from Africa’s business, economy, and more. SUBSCRIBE HERE