File Photo: Smiths fabricate jewellery at workshop in the 6th of October industrial zone southwest of Egypt s capital. AFP
The funding is part of the Egypt-Green Economy Financing Facility (GEFF) initiative, meant to drive economic modernization and environmental sustainability by providing loans to Egyptian businesses, with a particular focus on small and medium-sized enterprises (SMEs).
GEFF, jointly supported by the EIB and the European Bank for Reconstruction and Development (EBRD), is an initiative that offers financing for business investments through local financial partners.
The announcement was made on the sidelines of the Europe-Egypt Energy connectivity Event at the Swedish Embassy in Cairo in the presence of the Minister of Petroleum Tarek El-Molla, Minister of International Cooperation Rania Al-Mashat (via video conference), Christian Berger, the ambassador of the EU Delegation in Egypt, and Håkan Emsgård, the Swedish ambassador.
The newly provided finance by GEFF will empower businesses across the Egyptian market to secure investments aimed at reducing energy and water consumption, enhancing product quality, and boosting competitiveness.
Al-Mashat emphasised that this cooperation aligns with the country's current priorities and efforts to expand private sector engagement in development initiatives.
She noted that the new financing scheme with ALEXBANK boosts SMEs financing to enhance the efficiency and investments of renewable energy in the industrial, commercial, and agricultural sectors.
Al-Mashat added that the financing comes in light of the framework agreement Egypt and the EIB signed to promote development cooperation to create job opportunities and provide innovative solutions to achieve the country’s development goals and a larger role for the private sector.
“The EIB works with leading banks around the world to accelerate investment that cuts carbon emissions and harnesses renewable energy. This new partnership with ALEXBANK will enable Egyptian business to embrace green energy, cut energy bills and contribute to climate action,” said EIB Vice President Gelsomina Vigliotti.
She added that this finance also supports both Egypt's 2030 sustainable development strategy and the recently launched industrial development strategy.
Managing Director and CEO of ALEXBANK Dante Campioni noted that the bank recognises the crucial need to safeguard the environment, which is why investing in renewable and more energy efficient solutions is of paramount importance for Egyptian companies.
In Egypt, the GEFF initiative provides both finance and best-practice advice to help private sector businesses improve their competitiveness.
The EIB announced in February the allocation of $27 million as a participation in the $150 million Middle East Venture Fund, the largest-ever venture capital engagement by the EIB in the region.