GGF invests USD15mln in Export Development Bank of Egypt
• Facility to be on-lent to SMEs and corporates to fund green energy and resource efficiency measures, enabling a green recovery in light of COVID-19 crisis
• Investment estimated to result in more than 67,000 MWh/a of primary energy savings and prevent emission of over 13,000 tons of CO2
The Green for Growth Fund (GGF) has provided a new senior loan totaling USD 15 million to Export Development Bank of Egypt (EBE) to support the bank’s green lending activities to small and medium enterprises (SMEs) as well as corporates in the export sector.
Through the investment, the partners aim to facilitate these clients’ ability to access funding for energy and resource efficiency measures as well as renewable energy, especially in light of the difficult environment brought about by the COVID-19 crisis.
A strategic GGF partner since 2018, EBE plays a vital role in facilitating Egyptian exports. The funding will allow those clients, who represent a significant segment of the economy, to invest in equipment and machinery upgrades as well as resource efficiency measures (e.g. solar-powered water pumps used by agricultural SMEs).
In this endeavor, EBE and GGF aim to support Egyptian businesses in a “green recovery” from the challenges imposed by the coronavirus outbreak: such measures reduce both costs and environmental impact. The projected energy savings from the investment are estimated at 67,000 MWh/a, preventing the emission of more than 13,000 tons of CO2.
GGF Chairperson Olaf Zymelka stated: “The ramifications of the ongoing pandemic have hit local businesses particularly hard, including negatively affecting their ability to access funding for green measures. EBE and the GGF want to ensure that Egyptian exporters can continue to invest in its sustainability: After all, more efficient, environmentally sound operations mean a business that is ready for the future.”
Mervat Soltan, EBE Bank Chairperson said: “We are very pleased about our renewed partnership with the GGF as we believe that together we can bring much needed energy efficiency financing to businesses in Egypt. Despite the turbulent times brought about by the global pandemic, we remain committed to serving our corporate and SME clients by providing green finance where it is needed most.”
The Green for Growth Fund invests in measures designed to cut energy use and CO2 emissions, and improve resource efficiency in 19 markets across Southeast Europe and Turkey, the European Eastern Neighbourhood Region, and the Middle East and North Africa. The fund provides such financing directly to renewable energy projects, corporates and municipalities or indirectly via selected financial institutions. The GGF’s Technical Assistance Facility maximizes the fund’s investment impact through support for capacity building at local financial institutions and partners.
The GGF was initiated as a public-private partnership in December 2009 by Germany’s KfW Development Bank and the European Investment Bank, with financial support from the European Commission, the German Federal Ministry for Economic Cooperation and Development, the European Bank for Reconstruction and Development, and the Austrian Development Bank (OeEB).
The fund’s growing investor base comprises donor agencies, international financial institutions and institutional private investors, including the International Finance Corporation, the Dutch development bank FMO, and the German ethical bank GLS.
Export Development Bank of Egypt was established in 1983 to encourage and develop Egyptian exports and assist in creating export sectors in the fields of agriculture, industry, commerce and services in Egypt. It is governed by the regulations of the Central Bank of Egypt and the Banking and Monetary System Law. It provides an integrated range of banking services, including short-term, medium-term and long-term finance.
