Egypt’s Minister of Planning, Dr. Rania Al-Mashat,—as well as Egypt’s Governor at the European Bank for Reconstruction and Development (EBRD)—witnessed the signing of a landmark $100 million sustainability-linked loan (SLL) between the EBRD and Banque Misr.
The agreement was formalized by Banque Misr’s CEO, Hisham Ezz Al-Arab Akasha, and Francis Malige, EBRD’s Managing Director for Financial Institutions, with regional representatives including Mark Davies in attendance.
Strategic Objectives and Financial Dimensions
This SLL marks Egypt’s first ever sustainability-linked financing instrument with the EBRD, targeting two core objectives:
- At least 50% of the loan—i.e., $50 million—will support green projects in the private sector.
- The remaining portion will finance women-led micro, small, and medium-sized enterprises (MSMEs) and affordable housing initiatives.
Notably, the facility includes a performance-based margin reduction, allowing Banque Misr to benefit financially if it meets predefined sustainability targets—tied to environmental and social metrics.
Scaling Up Sustainable Finance
Since 2020, Egypt has mobilized over $15.6 billion in concessional financing for the private sector, with more than 40% directed to financial institutions. These flows are instrumental in scaling clean-energy, climate-resilient, and socially inclusive projects domestically.
Aligned with these efforts, in June the Ministry signed a cooperation protocol with the Egyptian Banking Association, deploying Egypt’s innovative “HAFIZ” platform—designed to expand access to international credit lines and technical banking support.
Driving Growth, Investment, and Employment
Minister Al-Mashat emphasized the macroeconomic impact of such instruments: concessional funding channels promote private-sector growth, job creation, and heightened domestic and international capital inflows.
- The EBRD’s portfolio in Egypt reached a new high in 2024, with commitments of nearly €1.5 billion across 26 projects, 98% targeting the private sector and 50% labeled as green financing. (EBRD)
- Cumulatively, between 2012 and 2024, the EBRD has invested over €13.8 billion in Egypt, anchoring the country as the top recipient in the Southern and Eastern Mediterranean.
Egypt’s Vision for Financial Innovation
Egypt’s government continues to emphasize innovative financing tools as central to its Vision 2030 agenda. With public investment now allocating 47% to human capital, and 50% of projects qualifying as green, instruments like the EBRD SLL integrate seamlessly into national strategies for sustainable, inclusive development.
By tying an initial $100 million loan to measurable environmental and social performance—and integrating concessional finance exceeding $15.6 billion since 2020—Egypt is charting a path where private-sector growth, climate action, and financial inclusion proceed hand in hand.
