Minister of International Cooperation Rania al-Mashat witnessed the signing of two agreements worth €621 million with the European Investment Bank (EIB) and SPE Capital Fund to support green sustainable industries (GSI) and enhance equity investments in companies during the Egyptian-European Investment Conference.
Green Sustainable Industries Project
The Green Sustainable Industries Project agreement, valued at €271 million, was signed by al-Mashat, Minister of Environment Yasmine Fouad, Director General for Neighborhood and Enlargement Negotiations at the European Commission Gert Koopman, and the Vice President of the EIB Gelsomina Vigliotti.
The project is funded by the EIB with €135 million, as well as a €30 million grant from the European Union (EU) managed by the EIB and funding from the French Development Agency (AFD) and other financing entities.
The program is carried out by the Egyptian Environmental Affairs Agency (EEAA) and the National Bank of Egypt (NBE).
The project comes under a framework of constructive cooperation with the EIB to support the private sector’s transition in Egypt towards climate action and a greener economy.
It will be used to provide financing for industrial companies in both the government and private sectors to promote green transformation plans that utilize renewable energy, green hydrogen, and biogas to decrease pollutants and lower carbon emissions, while also fostering the development of sustainable industrial practices.
Objectives of the Green Sustainable Industries Project
- Support the transition of the industrial sector in Egypt to a green economy by reducing greenhouse gas emissions and adopting sustainable practices.
- Cover the entire country, focusing on industrial sites and areas where pollution—particularly air or water pollution—negatively impacts the population and the surrounding environment.
- Eliminate industrial pollution of air, water, soil, and workplaces.
- Reduce carbon emissions in the industrial sector through the use of renewable energy, green hydrogen, and biogas.
- Implement environmentally friendly production methods by boosting energy efficiency, resource efficiency, and circular economy interventions.
- Digitize the implementing agency’s main environmental procedures, such as environmental permits and environmental impact assessments, which should contribute effectively and efficiently to overall efficiency and transparency in these operations.
SPE Capital Fund Agreement
al-Mashat also witnessed the signing of a €350 million financing agreement between the EIB and SPE Capital Fund to enhance equity investments in companies at the regional level.
The agreement was signed by Vigliotti and the Managing Partner and CEO of SPE Capital Nabil Triki.
Significance of the SPE’s Capital Fund Agreement
The agreement builds upon a history of financing provided by the EIB to Egypt’s private sector.
Through 19 equity funds, the EIB has unlocked €790 million in investments over the past five years.
Its total private sector financing in Egypt from 2020 to 2023 amounts to approximately €2.8 billion under the “Team Europe” initiative.
The two agreements are expected to unleash over 10,000 new jobs and bolster economic development in Egypt and North Africa.
Edited translation from Al-Masry Al-Youm
