CAIRO – Egyptian Minister of International Co-operation Rania al-Mashat signed and witnessed the signing of two agreements worth dlrs 621 million with the European Investment Bank (EIB) and the SPE Capital Fund to support sustainable green industries (GSI) and enhance equity investments in companies during the Egyptian-European Investment Conference.
Mashat, along with Minister of Environment Yasmine Fouad signed an agreement on the sustainable green industries project with Director-General for Neighborhood and Enlargement Negotiations at the European Commission Gert Koopman, and Vice-President of the European Investment Bank Gelsomina Vigliotti.
The project, worth 271 million euros, is financed by the EIB with 135 million euros and a 30 million euros grant from the European Union managed by the European Investment Bank, alongside funding from the French Development Agency and other financial entities. The program is implemented by the Egyptian Environmental Affairs Agency (EEAA) and the National Bank of Egypt (NBE).
The new agreement aligns with the state’s efforts to collaborate with development partners to enhance the transition to a green economy and support climate action. The project aims to support the transition of Egypt’s industry to a green economy by implementing measures related to climate change and environmental sustainability.
The project will cover the entire country, focusing on industrial sites and areas where pollution—particularly air or water pollution—negatively impacts the population and the surrounding environment. The project also promotes the elimination of industrial pollution of air, water, soil, and workplaces; reduces carbon emissions in the industrial sector through the use of renewable energy, green hydrogen, and biogas.
The project also aims to develop sustainable industrial practices by improving energy efficiency, resource efficiency, and circular economy interventions. Additionally, it will help the implementing agency digitize its main environmental procedures, such as environmental permits and impact assessments, contributing significantly and effectively to the overall efficiency and transparency of these processes.
Commenting on the project, Mashat said the new project is part of the constructive cooperation with the EIB to support the private sector’s transition in Egypt towards climate action and a green economy. The financing will be used to provide funding to industrial companies in both the public and private sectors to stimulate green transition plans, reduce pollutants, and lower carbon emissions through the use of renewable energy, green hydrogen, biogas, and the development of sustainable industrial practices.
European Investment Bank Financing for the SPE Capital Fund
Meanwhile, Mashat witnessed the signing of an agreement between the European Investment Bank and the SPE Capital Fund worth dlrs 350 million. The EIB aims to enhance the fund’s investments in high-growth companies, especially in the sectors of healthcare, pharmaceuticals, education, manufacturing, financial services, logistics, and consumer goods, in Egypt, Tunisia, and Morocco. The agreement was signed by Gelsomina Vigliotti, Vice-President of the bank, and Nabil Triki, Managing Partner and CEO of SPE Capital.
The financing is expected to create more than 10,000 new job opportunities, enhancing economic development in Egypt and the North Africa region.
Mashat explained that the EIB’s support for the SPE Capital Fund builds on a long history of support and financing provided by the bank to the private sector in Egypt, enhancing inclusive and sustainable economic development and supporting the competitiveness of the Egyptian economy. This support contributes to job creation, with the bank having invested 790 million euros in 19 equity funds over the past five years. Additionally, the bank’s total financing for the private sector in Egypt from 2020 to 2023 amounted to approximately dlrs 2.8 billion under the “Team Europe” initiative.
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