AfDB approves €225 million loan to finance Egypt’s Electricity, Green Growth Support Program

CAIRO – 17 June 2020: The Minister of International Cooperation Rania Al-Mashat announced the approval by the Board of Directors of the African Development Bank (AfDB) of a €225 million loan to finance Egypt’s Electricity and Green Growth Support Program (EGGSP), to promote sustainable development and mitigate climate change impacts on Egypt.

The Minister pointed out that the project would help meet the Government’s financing requirements, expand social expenditures to mitigate the socio-economic impact of the pandemic, and will support a sound electricity infrastructure base as a key enabler for the private sector and for the country’s competitiveness.

“Accelerated deployment of the EGGSP reform program is instrumental to bridge the energy access gap, fight climate change and promote sustainable development in Egypt. This multi-donor program provides a model for effective donor coordination and we continue to collaborate with all development partners to promote for a green recovery” Al Mashat said.

She clarified that the project reflected the effective cooperation and coordination between the government, the private sector and Egypt’s development partners, including AfDB, AFD and JICA, elaborating that the project would help in the achievement of 3 sustainable development goals (SDGs), SDG 7: Clean and Affordable Energy, SDG 12: Responsible Consumption and Production and SDG 17: Partnerships for the Goals.

For his part, the Minister of Electricity & Renewable Energy Mohamed Shaker commended AfDB’s role in supporting several energy projects in Egypt. He also praised Dr. Al-Mashat’s coordination efforts with AfDB, noting that EGGSP aimed to enhance secured energy supplies by expanding power generation from renewable energy sources and enhancing financial sustainability for the energy sector, noting that this would ensure larger private sector engagement in injecting more investments in the renewable energy sector and raising the efficiency and quality of energy services to further mitigate climate change impacts and sustain green growth, besides improving corporate governance and competitiveness.

The Bank’s Director General for the North Africa Region Mohamed El Azizi praised Egypt’s recent efforts in combating the COVID-19 implications.

“Whilst the pandemic has put extreme pressure on the economy and the social situation, the economic reforms undertaken by the Government and the Central Bank of Egypt over the past few years have helped create greater resilience and provide a buffer against shocks such as the COVID-19 pandemic,” Azizi stated.

On the other hand, AfDB Country Manager for Egypt, Malinne Blomberg, pointed out that the program was a continuation of AfDB’s partnership with the Egyptian Government on its reform agenda, which helps meet the imminent needs in light of the COVID-19 implications, noting that the project also contributed to preparing for the post-pandemic phase, which would have to rely on an energy sector that was both effective and sustainable.