The EU has pledged $82 million to help Egyptian SMEs go green

The European Bank for Reconstruction and Development (EBRD) announced the lunch of a credit line of $32 million (€28.3 million) to Ahli United Bank in Egypt on Tuesday, December 21, 2021. (Aube). The local bank will lend this funds to SMEs in the form of loans, helping to increase access to capital for small enterprises, which are still underserved despite their importance to the Egyptian economy.

As a result, the EBRD will be able to help people living in rural places outside of Cairo and Alexandria.

The European Union (EU) will contribute an additional $10 million (€8.9 million) to the value chain as part of its trade and competitiveness policy. A extra $12 million (€10.6 million) will be granted for the green value chain in partnership with the Green Climate Fund (GCF).

The funds will be aimed at SMEs in the agricultural, manufacturing and services, logistics, and information and communication technology sectors, and will be dispersed by Ahli United Bank in Egypt, a 95.7 percent subsidiary of Ahli United Bank, Bahrain’s largest bank. The loans will be used to fund advanced technology investments as well as climate change mitigation and adaptation measures in order to promote green value chains.

The EBRD also activated the Green Climate Fund in February 2020, co-financing two loans to QNB Alahli, a local commercial bank, for on-lending to SMEs willing to invest in climate change mitigation.

The EBRD will also provide a €30 million (€26.6 million) trade facility, which will be funded through the EBRD’s Trade Facilitation Programme (TFP). It will enable the issuance of guarantees to confirm banks in support of Aube’s trade finance instruments. As well as financial advances to support pre-and post-export as well as local distribution of imported goods, trade-related loans are available. The National Bank of Egypt (NBE) was already given this facility in June 2020.

Since its inception in Egypt in 2012, the EBRD has invested €8 billion in 138 projects.

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