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EU and three banks launch $151m green economy facility in Egypt

Staff Writer | March 22, 2017
The European Bank for Reconstruction and Development (EBRD), along with Agence Française de Développement (AFD), the European Investment Bank (EIB) and the European Union (EU), has launched a €140 million ($151.22 million) programme to promote green investments in Egypt, the EBRD announced.
Egypt renewable
For Africa   The EU is contributing a grant of €23.8 million
The bank said that the launched programme, titled Green Economy Financing Facility (GEFF), will support "projects to boost energy efficiency and the development of renewable energy sources in the country at a time of rising energy prices."

In 2014, Egypt started a plan to introduce a number of fiscal reforms, including fuel subsidy cuts and the imposition of new taxes, to ease a growing budget deficit, currently estimated at 12.2 percent of GDP. As part of these reforms, the Egyptian pound was floated in November.

The new programme will provide loans for energy efficiency and small-scale renewable energy investments by private companies through a group of participating banks, with the aim of also achieving energy security.

The loans are combined with technical support to develop projects and with incentives for the successful completion of investments, aimed at promoting energy-efficient and renewable energy technology, raising awareness, reducing operating costs and improving competitiveness.

The EU is contributing a grant of €23.8 million. The National Bank of Kuwait (NBK) in Egypt and the Qatar National Bank (QNB) Al-Ahli in Egypt are the first banks to participate in the new facility.