The European Bank for Reconstruction and Development (EBRD) is supporting the green economy in Egypt with a $100m loan to Banque Misr for on-lending to local small and medium-sized enterprises (SMEs).
The loan follows the success of the Green Economy Financing Facility (GEFF) in Egypt and will support an expansion of green lending in the country to under-served regions for investments in climate change mitigation and adaptation technologies and services.
A technical assistance programme of €2.3m funded by the bank and the Netherlands through the High Impact Partnership on Climate Action (also supported by Austria, Finland, Switzerland, Taiwan, the ICDF, and UK) will also be provided to Banque Misr as sub-borrowers to support implementation of the programme, as well as enhance awareness of green financing, particularly among female entrepreneurs.
EBRD Managing Director for the Southern and Eastern Mediterranean 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 established in 1920 and is the second largest bank in Egypt. It has been a partner of the EBRD since 2017, when it signed its first small business loan, followed by a trade finance facility in 2018 and a $200m financing package for trade and on-lending to SMEs.
“Conceding with Egypt’s preparation to host the COP27, our partnership with the 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,” said Banque Misr Chairperson Mohamed Al-Etreby.
“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,” he added.
Egypt is a founding member of the EBRD. Since the start of its operations there in 2012, the bank has invested more than €9.8bn in 152 projects in the country.