The Agricultural Bank of Egypt (ABE) has signed a cooperation protocol with the German Agency for International Cooperation (GIZ) and IPC Consulting to establish the foundations of sustainable finance. The agreement focuses on developing and implementing an Environmental, Social, and Governance (ESG) management system, integrating it into credit procedures and financing activities for small and medium-sized enterprises (SMEs) as well as across all of the bank’s investments. The initiative is in line with the Central Bank of Egypt’s requirements and international best practices that promote inclusive and sustainable economic growth.
This step reflects ABE’s commitment to strengthening its capabilities in transitioning towards sustainable finance and applying sustainability standards across its banking products and financing programmes.
Under the protocol, GIZ will provide technical and advisory support for the development of innovative, environmentally friendly financing products and programmes tailored to the needs of SME owners. These initiatives are closely aligned with Egypt’s national direction towards building a green economy and achieving the Sustainable Development Strategy: Egypt Vision 2030.
The protocol was signed by Ghada Mostafa, Deputy CEO for Support Sectors at ABE, and Carina Denker, Head of Climate Change and Green Transformation at IPC Consulting, in the presence of Mohamed Abou El-Soud, CEO of ABE; Sami Abdel Sadeq, Deputy CEO for Business Sectors; Nihal Hassan and Nehir Khairy, representatives of GIZ; Dalia Saqr and Moamen Adel, representatives of IPC Consulting; as well as senior officials from ABE’s sustainability, sustainable finance, credit, and risk departments.
Ghada Mostafa reaffirmed the bank’s commitment to deepening cooperation with both international and local institutions, highlighting ABE’s dedication to integrating ESG principles into all banking operations. She stressed that the bank aims to support a financial system aligned with global best practices in order to achieve inclusive and sustainable economic growth, particularly as Egypt’s largest bank financing the agricultural sector and its related activities.
She added that the strategic partnership with GIZ and IPC Consulting marks a pioneering step in ABE’s journey to strengthen its capacity for applying sustainable finance mechanisms and advancing the green economy. Through this collaboration, ABE will receive a comprehensive package of consultancy and technical support, including the design and rollout of innovative green financing products tailored to the SME sector. The agreement also includes developing practical frameworks and implementation strategies to oversee these products, ensuring full alignment with international standards in green finance. This, she explained, will contribute to SME sector growth and expand the base of beneficiaries of the bank’s financing programmes.
Mostafa further noted that the protocol also provides for capacity-building and training for ABE staff in sustainability, credit, and risk management. GIZ will support employees in acquiring expertise in sustainable finance, equipping them to design SME banking products, assess environmental and social risks, and apply governance and transparency across all financing activities.
