EBRD and AFD deepen green finance in Egypt
Financing package of $30 million to Arab African International Bank to support green technology
- EBRD and EU funding to boost lending for energy efficiency in Egypt
- Investments in corporate sector to boost green economy and generate savings
- Funds to support import and export of green technologies
The EBRD is supporting energy efficiency improvements of the Egyptian private sector businesses, by providing a loan of up to US$30 million to Arab African International Bank (AAIB).
Co-financed by a US$15 million from the Agence Française de Développement (AFD), the loan will increase financing in the green economy in Egypt.
Loans will cover investments in green technologies, such as thermal insulation, photovoltaic solar panels, geothermal heat pumps and water efficient irrigation systems. Businesses can identify typical green technologies through the Technology Selector. The loans are complemented by European Union funds to help companies identify the most efficient equipment or technologies and verify their use once they are installed.
In a further step the Bank is supporting the import and export of green technologies under the EBRD’s Trade Facilitation Programme. Through the Programme, the Bank provides guarantees to international confirming banks, taking the political and commercial payment risk of international trade transactions undertaken by banks in the countries of operations.
The funding is provided under the Egypt Sustainable Energy Financing Facility (EgyptSEFF) that supports sustainable energy projects via local partner banks. The programme is contributing towards building a green economy in accordance with the EBRD Green Economy Transition (GET) approach.
Egypt is a founding member of EBRD. Since the start of its operations in the country in 2012, the Bank has invested over €5.3 billion in 99 projects in the country. In 2018, Egypt was the largest EBRD country of operations in terms of new commitments.
