Egypt to receive first €50 million tranche for green industries in June

Egypt is set to receive the first tranche of up to €50 million in June for its Sustainable Green Industries Program. This funding aims to accelerate Egypt’s green transition and align its industrial sector with international environmental standards, as stated by Hanaa Gomaa, Project Director at the Ministry of Environment. The overall financing agreement, totaling €271 million, was signed during the Egypt–EU Investment Conference in June 2024. The initiative will help Egyptian exporters comply with the European Union’s Carbon Border Adjustment Mechanism CBAM and enhance product competitiveness. The funding includes €135 million in loans from the European Investment Bank EIB and a €30 million grant from the European Union, with additional contributions from the French Development Agency and other international partners. The program is now operational, with the EIB-appointed technical support team starting work in February. Initial approvals have been granted for 8 to 10 industrial projects focusing on energy efficiency, carbon emission reduction, and waste management. The National Bank of Egypt will manage the funds and invite local banks to participate in April to provide financing to factories. Loans will be available in local and foreign currencies, with interest rates for the Egyptian pound at 1% to 2% above the corridor rate and above LIBOR for the U.S. dollar. Individual project loans will range from €200,000 to €25 million.