The European Bank for Reconstruction and Development (EBRD) and Commercial International Bank (CIB) have signed agreements for a US$ 60 million (€55.9 million) financing package to promote on-lending for green investments and to women-led businesses in Egypt, according to the European bank” website.
Part of the package is a US$50 million Green Economy Financing Facility (GEFF II), including US$7.5 million in co-financing from the Green Climate Fund (GCF). This facility will fund investments in climate change mitigation and adaptation technologies and services. The financing will support private businesses in various sectors, including agribusiness, manufacturing and services, logistics and distribution, and information and communications technology.
The GEFF II loan will be accompanied by investment incentive grants from the European Union (EU) of up to €5.2 million to encourage the adoption of greener and high-performing technologies and solutions by local micro, small, and medium-sized enterprises (MSMEs) and support the development of resilient supply chains for green equipment.
This marks the third GEFF II credit line the EBRD, GCF, and EU have provided in Egypt to help build a greener, more inclusive, and competitive local economy by financing local MSMEs.
As part of the technical assistance package, CIB will also introduce the use of the Green Technology Selector, the EBRD’s green technology transfer tool, to encourage collaboration by technology manufacturers and vendors to increase the local availability of climate technologies.
Through the GEFF program, the EBRD has invested more than US$240 million in Egypt to date to support energy efficiency, climate adaptation, and a circular economy.
The second part of the US$60 million financing package is a US$10 million EBRD Women in Business loan to promote women’s participation in the economy and provide financial, advisory, training, and mentoring support to female entrepreneurs. The program focuses, in particular, on women-led small businesses with fewer than 250 employees and less than €50 million in annual turnover. It covers most sectors and industries.
The two loan agreements were signed at the EU Investment Conference in Cairo, attended by EBRD First Vice President Jürgen Rigterink.
CIB Deputy Chief Executive Officer and Managing Director Amr El Ganainy said: “We are pleased to collaborate with the EBRD again on these comprehensive lending agreements, which will go a long way towards helping private businesses across Egypt address climate mitigation and supporting women-led businesses. This financing underscores CIB’s commitment to providing MSMEs with sustainable and inclusive financial solutions.”
