The European Investment Bank’s development arm (EIB Global) and Egypt have signed an agreement for the use of a €21 million grant to help green the Egyptian economy. The grant, funded by the European Union and managed by EIB Global, is intended to accelerate efforts by the Egyptian private and public sectors to decarbonise and promote environmental sustainability. Most of the EU grant (€20 million) will be used to co-finance investments to reduce carbon emissions, boost recycling and support other pollution-reduction steps taken by Egyptian industry. The remaining €1 million will be for the digitalisation of the Egyptian Environmental Affairs Agency to enhance its environmental monitoring, enforcement and transparency.

The signature took place at an event attended by Minister Al Mashat, EIB Vice-President Gelsomina Vigliotti, Stefano Sannino, director general of the European Commission’s Directorate-General for the Middle East, North Africa and the Gulf, and Egyptian Minister of Environment Yasmine Fouad. Also present were Samar Al-Ahdal, supervisor of the European Cooperation Sector of MOPEDIC, and Yehia Aboul Fotouh, deputy chief executive officer of the National Bank of Egypt. The EU grant is part of an Egyptian Green Sustainable Industry programme to which EIB Global is already contributing a €135 million loan. The EIB financing is expected to unlock €271 million in climate-focused investments, contributing to Egypt’s transition to a low-carbon and more environmentally friendly economy.

Stefano Sannino, Director-General of the Directorate-General for the Middle East, North Africa and Gulf of the European Commission said: “Today, the EU launches the EU-Egypt Investment Guarantee for Development Mechanism, a strategic platform designed to fast-track significant investment projects and deliver large-scale financing solutions in Egypt. Close to one year after a successful EU-Egypt investment conference which generated numerous EU investment opportunities in Egypt, this is a new major milestone in the implementation of the EU-Egypt Strategic Partnership. In a Team Europe approach, the EU becomes a strategic investor and economic partner in Egypt’s sustainable growth and green transition. The Investment Guarantees for Development Mechanism will help mobilising up to €5 billion in public and private investments between 2024 and 2027”.