EBRD and GCF Partner with Crédit Agricole Egypt to Boost Small Businesses and Green Investments with $20 Million Loan

EBRD and GCF Partner with Crédit Agricole Egypt to Boost Small Businesses and Green Investments with $20 Million Loan

(IN BRIEF) The European Bank for Reconstruction and Development (EBRD) and the Green Climate Fund (GCF) are providing a $20 million loan to Crédit Agricole Egypt to support small businesses and green investments. This loan includes $3 million of concessional finance from the GCF and will benefit local SMEs and households. The EU is also contributing up to €2.05 million for successful projects and €6.2 million for technical assistance. This initiative aims to promote energy efficiency, renewable energy, and resource efficiency projects in line with Egypt’s Vision 2030. Crédit Agricole Egypt will utilize the funds to help sub-borrowers in various sectors, enhancing the country’s green economy.

(PRESS RELEASE) LONDON, 5-Aug-2024 — /EuropaWire/ — In a significant effort to support small businesses and promote green investments in Egypt, the European Bank for Reconstruction and Development (EBRD) has extended a $20 million loan (approximately €18.5 million) to Crédit Agricole Egypt, a leading commercial bank and subsidiary of the Crédit Agricole Group. This loan includes $3 million of concessional finance from the Green Climate Fund (GCF) and is aimed at providing on-lending to local small and medium-sized enterprises (SMEs) and households.

This financial package will be bolstered by grants from the European Union (EU), offering up to €2.05 million for incentive payments on successful project implementation and verification. Additionally, the EU will provide a comprehensive technical assistance package worth up to €6.2 million for all participating financial institutions, their clients, and for policy dialogue.

Crédit Agricole Egypt is now the fourth bank in the country to benefit from a loan under the GCF GEFF Regional Egypt Framework, marking the second Green Economy Financing Facility (GEFF II) in Egypt.

The Crédit Agricole Group is committed to fostering green growth and environmentally responsible business practices, aligning with its broader strategy to support the global energy transition through innovative green finance solutions.

The EBRD’s financing will be used by Crédit Agricole Egypt to support private sub-borrowers, including households and SMEs in sectors such as residential, agribusiness, industrial, commercial, and services. These funds will help develop green projects focused on energy efficiency, water efficiency, renewable energy, and resource efficiency. This initiative aims to encourage the use of high-performance technologies and services for climate mitigation and adaptation, contributing to Egypt’s Vision 2030 and its transition to a greener economy.

This program is notable for being the first of its kind in Egypt and the broader southern and eastern Mediterranean (SEMED) region to incorporate both retail and residential segments.

Heike Harmgart, EBRD Managing Director for the SEMED region, expressed satisfaction with the deployment of GEFF II in Egypt, emphasizing the importance of promoting green investments with the support of the EU and GCF. She highlighted the strengthened partnership with Crédit Agricole Egypt in supporting small businesses and households towards greener projects.

Jean-Pierre Trinelle, Managing Director of Crédit Agricole Egypt, affirmed the bank’s commitment to supporting clients in their energy transition, stressing the importance of these funds in assisting customers with energy efficiency and transition projects. This initiative is central to Crédit Agricole Egypt’s strategy to enhance the green finance landscape in the country.

Supporting the energy transition is a key pillar of Crédit Agricole Group’s plan, which aims to accelerate the development of renewable and low-carbon energy while phasing out financing for carbon-based energy projects.

Since beginning operations in Egypt in 2012, the EBRD has invested over €12.2 billion in 183 projects across various sectors, including financial services, agribusiness, manufacturing, infrastructure, and transport services.

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SOURCE: EBRD