EBRD, donors and Crédit Agricole boost green investments in Egypt
The European Bank for Reconstruction and Development (EBRD) is boosting small businesses and green investments in Egypt with a loan of US$ 20 million (ca.€18.5 million equivalent) to Crédit Agricole Egypt (CAE), one of Egypt’s largest commercial banks and a subsidiary of Crédit Agricole Group. The loan, which includes US$ 3 million of concessional finance from the Green Climate Fund (GCF), will be used for on-lending to local small and medium-sized enterprises (SMEs) and households.
The financing for Crédit Agricole Egypt will be supported by the European Union (EU), with up to €2.05 million for incentive payments for successfully implemented and verified projects. The EU will also provide a comprehensive technical assistance package of up to €6.2 million for all participating financial institutions and their clients, and for policy dialogue.
Crédit Agricole Egypt is the fourth bank in Egypt to benefit from a loan under the GCF GEFF Regional Egypt Framework, the second Green Economy Financing Facility (GEFF II) in the country.
Fostering green growth and environmentally responsible business practices is an integral part of Crédit Agricole Group’s strategy. It also aligns with the Group’s commitment to supporting the energy transition by designing a green finance path that better serves the needs of its clients across the globe.
Crédit Agricole Egypt will extend the EBRD’s financing to private sub-borrowers, including individual households and SMEs operating in the residential, agribusiness, industrial, commercial and service sectors who are developing green, energy-efficiency, water-efficiency, renewable-energy and resource-efficiency projects. This will promote the use of high-performance technologies and services in the field of climate mitigation and climate adaptation activities. It will also help with the country’s transition to a greener economy, in line with Egypt’s Vision 2030.
This is the first programme of its kind in Egypt and in the wider southern and eastern Mediterranean (SEMED) region to have both a retail and a residential segment.
Heike Harmgart, EBRD Managing Director for the SEMED region, said: “We are very happy to continue deploying GEFF II in Egypt with the EU and GCF’s support to promote green investments, in line with our Green Economy Transition approach. We are proud to strengthen our partnership with Crédit Agricole Egypt, supporting small businesses and households and increasing finance for greener projects.”
Jean-Pierre Trinelle, Managing Director of Crédit Agricole Egypt, stated: “We are proud of our cooperation with EBRD. In the face of climate challenges, we firmly believe that as a universal bank, we have an imperative duty to support our clients and society in their energy transition.”
Trinelle added, “Utilizing these funds to assist our individual and entrepreneurial customers in successfully completing their energy efficiency and transition projects is core to our strategy. It also aligns with CAE’s commitment to elevating the green finance landscape in the country”.
Supporting energy transition for all is a main pillar of Crédit Agricole Group’s transition plan, which seeks to accelerate the development of renewable and low-carbon energy while structuring its own exit from the financing of carbon-based energy projects.
Egypt is a founding member of the EBRD. Since the start of its operations there in 2012, the Bank has invested more than €12.2 billion in 183 projects in the country.. The EBRD’s areas of investment in Egypt include the financial sector, agribusiness, and manufacturing and services, as well as infrastructure projects such as power, municipal water and wastewater services, and contributions to the upgrade of transport services.
