621 million euros to Egypt from the European Bank to support green industries and investment

Dr. Rania Al-Mashat, Minister of International Cooperation in Egypt, announced the signing of two agreements worth 621 million euros with the European Investment Bank to support and develop sustainable green industries and enhance investment in private sector shares.

The Minister explained that the first agreement includes the sustainable green industries project, worth 271 million euros, between the Ministries of International Cooperation and Environment, the European Investment Bank, and the European Union.

She pointed out that the second agreement includes financing between the European Investment Bank and the SBA Capital Fund worth 350 million euros, to enhance investments in corporate shares at the regional level.

The two agreements were signed by Dr. Rania Al-Mashat, Minister of International Cooperation, during the activities of the Egyptian-European Investment Conference, and Dr. Yasmine Fouad, Minister of Environment, with Geert Koopman, Director General for Neighbourhood and Enlargement Negotiations at the European Commission, Gelsomina Vigilotti, Vice President of the European Investment Bank, and Nabil Triki, Managing Partner and CEO of SBA Capital.

• Promoting the transition to a green economy

This new signing, according to the Ministry of International Cooperation, comes within the framework of the Egyptian state’s efforts to cooperate with development partners to enhance the transition to a green economy and support climate action, as the first agreement project aims to support the transition of industry in Egypt to a green economy, by implementing measures related to climate change and environmental sustainability.

This project is set to cover the entire Egyptian state, with a focus on industrial sites and areas where pollution, particularly air or water pollution, negatively impacts the population and the surrounding environment.

The project also works to enhance the elimination of industrial pollution of air, water, soil and workplaces, and reduces carbon emissions in the industrial sector through the use of renewable energy, green hydrogen and biogas, and develops sustainable industrial practices, through raising energy efficiency, resource efficiency and circular economy interventions.

The second agreement aims to enhance investments in shares of high-growth companies, especially in the sectors of healthcare, pharmaceuticals, education, manufacturing, financial services, logistics services, and consumer goods.

The financing is expected to contribute to creating more than 10,000 new job opportunities in Egypt, thus enhancing economic development in Egypt and the North Africa region.

• Shift to climate action

Dr. Rania Al-Mashat, Minister of International Cooperation, said: “The first project comes within the framework of constructive cooperation with the European Investment Bank, to support the private sector’s transformation in Egypt towards climate action and a green economy, as the funding will be used to provide financing to industrial companies, both in the public and private sectors, to stimulate green transformation plans, reduce pollutants and carbon emissions, through the use of renewable energy, green hydrogen and biogas, and develop sustainable industrial practices.”

The Minister of International Cooperation explained that the European Investment Bank’s support for the SBA Capital Fund builds on a long history of support and financing provided by the bank to the private sector in Egypt, which enhances comprehensive and sustainable economic development, supports the competitiveness of the Egyptian economy, and contributes to creating job opportunities.

She explained that the European Investment Bank provided Egypt with investments worth 790 million euros in 19 equity funds in 5 years, and its total financing for the private sector in Egypt during the period from 2020 to 2023 amounted to about 2.8 billion dollars, as part of the “Team Europe” initiative.