EBRD Encourages Green Investments in Small Businesses in Egypt
The European Bank for Reconstruction and Development (EBRD) assists Egypt's green economy by giving $100 million to Banque Misr for on-lending to local small and medium-sized enterprises (SMEs).
The loan builds on the success of Egypt's Green Economy Financing Facility (GEFF) and helps expand green lending in Egypt to underserved regions for investments in climate change mitigation and adaptation technologies and services.
A technical assistance programme of €2.3 million funded by the Bank and the Netherlands through the High Impact Partnership on Climate Action (also supported by Austria, Finland, Switzerland, TaiwanICDF and the United Kingdom) will also be provided to Banque Misr and as sub-borrowers to support the implementation of the programme, as well as enhance awareness of green financing, particularly among female entrepreneurs.
EBRD Managing Director for SEMED, Heike Harmgart, said:
“The EBRD is committed to promoting green investments in the economies where it invests and greening the financial system. This new partnership with Banque Misr builds on our successful cooperation and is in line with our country strategy to promote a green, competitive, and inclusive economy.”
Banque Misr was founded in 1920 and is Egypt's second-largest bank. It has been a partner of the EBRD since 2017 when it inked its first small business loan, followed by a trade finance facility in 2018 and a US$ 200 million financing package for trade and on-lending to SMEs.
Banque Misr Chairman, Mohamed El-Etreby, said:
“Conceding with Egypt’s preparation to host COP 27, our partnership with EBRD is no coincidence, it is the incarnation of our belief that Green Finance and SMEs funds are instrumental to more inclusive and sustainable economic growth in Egypt and community wellbeing.
"We extended our partnership with the EBRD to channel liquidity to SMEs, promote the adoption of renewable energy, and accelerate the adaptation of technologies on energy and resource efficiencies across a wide range of sectors."
Egypt is a founding member of the EBRD. Since its inception in 2012, the Bank has invested more than €9.8 billion in 152 projects in the country.