Egypt set to receive €50mn in first tranche of EU-backed green industry financing in June

The Egyptian government is set to receive €50mn in June, representing the first tranche of financing under its Sustainable Green Industries programme, Economy Plus reported on April 14.

The funding is part of efforts to accelerate the country’s green transition and align industrial activity with international environmental standards.

The programme was launched under an agreement signed during the Egypt-EU Investment Conference in June 2024, with total funding reaching €271mn. It aims to support Egyptian exporters in complying with the EU’s Carbon Border Adjustment Mechanism (CBAM).

The finance package includes €135mn in loans from the European Investment Bank (EIB), alongside a €30mn grant from the EU, with additional contributions from the French Development Agency and other international partners.

Hanaa Gomaa, Director of the Sustainable Green Industries project at the Ministry of Environment, said the programme has entered its implementation phase, with the EIB-appointed technical support team beginning operations in February.

Initial approvals have been granted to 8-10 industrial projects, which are currently preparing detailed feasibility studies ahead of disbursement once the first tranche is received. The projects focus on energy efficiency, carbon emissions reduction, and waste management.

The National Bank of Egypt (NBE) will act as the on-lending institution, with plans to invite local banks to participate in financing during April. Loans will be offered in both local and foreign currencies, with interest rates set at 1% to 2% above corridor and LIBOR benchmarks, and individual project financing ranging from €200,000 to €25mn.