EGYPT – The government of Egypt has secured a total of US$170 million in funding and grants from the French Development Agency (AFD) to support development of the energy sector in the country.

Africa Energy Portal reported that the AFD funds were provided under the Energy Sector Budget Support Programme in Egypt.

“This is a major step in AFD’s commitment to support Egypt in its transition to a sustainable and efficient energy system,” said Fabio Grazi, AFD’s Director for Egypt.

Rania al-Mashat, Egypt’s Minister of International Cooperation, explained that the agreement between Egypt and the French Development Agency (AFD) includes a grant to finance technical support for the reform of the country’s energy sector.

The AFD funds, according to al-Mashat will also be used to reform the electricity transport sector to make it more environmentally friendly and more in line with international standards.

Rania al-Mashat  further noted that the AFD funds will also contribute to the achievement of three sustainable development objectives (SDOs) in the country.

“This will include providing clean energy at reasonable prices to the population, achieving sustainable production and consumption, and building partnerships to achieve the desired goals,” explained Rania al-Mashat.

The funding from AFD follows the approval of a €225 million ($253 million) loan to finance Egypt’s Electricity and Green Growth Support Programme (EGGSP) by the board of directors of the African Development Bank (AfDB).

The funding according to AFDB will help meet the government of Egypt’s financing requirements in the light of the COVID-19 pandemic and support a sound electricity infrastructure base, a key enabler for the private sector and for the country’s competitiveness.

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