Egypt’s private sector attracts $890M investments from international institutions in November

Updated 12/1/2024 3:46:00 PM

Arab Finance: International financial institutions invested approximately $890 million in Egypt’s private sector in November, the Ministry of Planning and Economic Development and International Cooperation announced in a statement.

These investments targeted key sectors, including climate finance, small and medium enterprises (SMEs), green tourism, and renewable energy expansion under the NWFE program.

Minister of Planning Rania Al-Mashat emphasized that empowering the private sector is a cornerstone of Egypt’s strategic partnerships with multilateral development banks.

Among the key contributors, the International Finance Corporation (IFC) led the way with investments totaling $605 million.

This included a $300 million sustainability bond issued by the Arab African International Bank (AAIB), marking the first and largest such bond by a private bank in Africa.

The IFC also provided $155 million in sustainability-linked financing to Orascom Development Egypt to support green tourism initiatives in El Gouna by improving energy and water efficiency and reducing greenhouse gas emissions.

Additionally, a $150 million financing package was extended to the Commercial International Bank (CIB) to enhance its financial resilience and expand lending to SMEs, particularly women-owned businesses.

The European Bank for Reconstruction and Development (EBRD) also played a significant role, signing financing and investment agreements worth $184 million.

This included $100 million in sustainability bonds for the AAIB and a $26 million guarantee for CIB to increase SME financing.

The EBRD further supported QNB Bank with a $37 million guarantee to promote SME growth and mitigate credit risks.

Another major initiative involved a $21.3 million soft loan to the Red Sea Wind Energy Company, aimed at expanding a wind power plant in the Gulf of Suez as part of Egypt’s renewable energy drive.

Meanwhile, the British International Investment (BII) contributed $100 million to the AAIB’s sustainability bond, reinforcing its commitment to green finance and sustainable development in Egypt.