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  • The EU commits $82 million to greening Egyptian SMEs

The EU commits $82 million to greening Egyptian SMEs

Dec 21 2021

The European Bank for Reconstruction and Development (EBRD) announced on Tuesday 21 December 2021 the opening of a credit line of $32m (€28.3m) to Ahli United Bank in Egypt (Aube). The local bank will on-lend this sum in the form of loans to SMEs to help “improve access to finance for small businesses which remain underserved despite their crucial role in the Egyptian economy”, underlines an EBRD press release.
The EBRD will thus be able to extend its support to those located in remote areas outside Greater Cairo and Alexandria.

For its part, the European Union (EU) will lend an additional $10m (€8.9m) for the value chain under its trade and competitiveness programme. A further $12m (€10.6m) will be provided in collaboration with the Green Climate Fund (GCF) for the green value chain.

Again distributed by Ahli United Bank in Egypt, a 95.7% subsidiary of Ahli United Bank, Bahrain’s largest bank, the funds will be targeted at SMEs in the agribusiness, manufacturing and services, logistics and information and communication technology sectors. The loans are intended to finance investments in advanced technologies and climate change mitigation and adaptation solutions to foster green value chains.
In February 2020, the EBRD also activated the Green Climate Fund to co-finance two loans to the local commercial bank QNB Alahli for on-lending to SMEs willing to invest in climate change mitigation.

Source: Econostrum