Egypt is with Morocco, the main beneficiary in North Africa of the GEFF II green financing program implemented by the EBRD. Worth € 341 million, it provides the country with access to additional financing for its households and SMEs.
The European Bank for Reconstruction and Development (EBRD) has granted a loan of € 42.6 million to QNB Alahli, a subsidiary of the National Bank of Qatar (QNB). This loan will allow the Bank to finance green projects carried out by households and small and medium-sized enterprises (SMEs) in Egypt.
Of this amount, € 6.4 million in concessional financing was provided by the Green Climate Fund (GCF). The European Union (EU) has also contributed to this green funding with € 4.3 million under the EU fund for incentive payments to projects that are successfully implemented and verified. The EU will also provide € 6.2 million in technical assistance to all participating financial institutions and their clients.
In addition to financing green projects for households and SMEs, the funds will enable QNB Alahli to provide loans to SMEs operating in the construction, agribusiness, industry, trade and services sectors.
The funds will also benefit SMEs that develop projects in the fields of renewable energy and resource efficiency. The EBRD believes that this funding will enable climate change mitigation and adaptation activities to be carried out, and will contribute to the transition to a greener economy.
EBRD, GCF and EU funding falls under the Egyptian regional framework of GCF GEFF, the second green economy financing mechanism (GEFF II) in Egypt. This financing mechanism was initiated by the EBRD and the GCF and provides lines of credit to financial institutions in countries where the EBRD operates for climate change mitigation and adaptation investments.
“We are very happy to deploy GEFF II in Egypt with the support of the EU and GCF to promote green investments, in line with our strategy to transition to a green economy. Through our partnership with QNB Alahli, we have been able to support small businesses and trade, and increase funding for greener projects, ”said Heike Harmgart, EBRD Managing Director for the Southern and Eastern Mediterranean.