CAIRO — Egypt is expected to receive the first tranche of funding, valued at up to €50 million, in June under the Sustainable Green Industries Program, as the government moves to accelerate the country’s green transition and align its industrial sector with international environmental standards.
The update was provided by Hanaa Gomaa, Project Director of the initiative at the Ministry of Environment, in remarks to Economy Plus.
The financing agreement for the program was signed during the Egypt–EU Investment Conference in June 2024, with the total funding package reaching €271 million. The initiative is aimed at helping Egyptian exporters comply with the European Union’s Carbon Border Adjustment Mechanism (CBAM), a move expected to strengthen the competitiveness of Egyptian products in international markets.
According to Gomaa, the funding package includes €135 million in loans from the European Investment Bank (EIB), alongside a €30 million grant from the European Union. Additional financing is being provided by the French Development Agency and other international development partners.
She said the program has now entered its operational phase, with the technical support team appointed by the European Investment Bank having officially started work in February.
Gomaa added that preliminary approvals have already been granted for between eight and 10 industrial projects. These projects are currently preparing detailed feasibility and technical studies ahead of disbursement once the first tranche of financing is received.
The approved projects are primarily focused on improving energy efficiency, reducing carbon emissions and strengthening waste management systems.
She also said the National Bank of Egypt will act as the receiving bank for the funds and is expected to invite local banks to join the program during April. This will allow participating banks to provide financing to factories and companies under standardised terms and conditions.
According to Gomaa, funding will be made available in both local and foreign currencies. Interest rates will be set at 1% to 2% above the corridor rate for the Egyptian pound and above LIBOR for the U.S. dollar.
Loan sizes for individual projects will range from a minimum of €200,000 to as much as €25 million.
The Sustainable Green Industries Program is expected to play an important role in supporting Egypt’s industrial modernisation efforts while helping domestic producers meet evolving environmental requirements in key export markets.
