Egypt's official Gazette published on Thursday President Abdel Fattah El Sisi's decree that approved a 50-million-dollar loan to finance energy efficiency program.
The program focuses on three thematic pillars, including: enhancing macro-fiscal sustainability, enabling private sector development, and fostering women’s economic inclusion.
The agreement contributes to funding a program for supporting projects and facilities of micro, small and medium enterprises of the private sector in Egypt.
The newly approved “Egypt Inclusive Growth for Sustainable Recovery” operation builds on this by supporting a second wave of structural reforms focused on creating jobs and providing an inclusive enabling environment for the private sector laying the basis for a sustainable recovery.
EBRD noted that the loan will be provided under the EBRD’s Women in Business program. It will be used to support privately owned micro, small and medium-sized enterprises (MSMEs) that are owned by women, especially in governorates other than Greater Cairo and Alexandria.
According to EBRD, 15 percent of the total loan amount is being co-financed by the Green Climate Fund (GCF).
EBRD clarified that the loan, which includes $ 7.5 million of concessional finance from the Green Climate Fund, will be used for on-lending to households and local small and medium-sized enterprises (SMEs).
Application began on August 15 and will last until September 9.
The loan, which was signed on November 23, 2020, totals 5.5 million Kuwaiti dinars (about US$ 18,27 million).
Egypt will receive the last tranche of its $5.2 billion loan from the International Monetary Fund (IMF) before the end of June, Minister of Finance Mohamed Maait suggested in remarks to Egypt Today.
Abul-Naga clarified this step is a tribute to the economic reform measures undertaken by the Egyptian state since 2016.
The decision stipulated the allocation of the loan to finance the operation of the Monorail train in the New Administrative Capital, which starts from Nasr City to the New Administrative Capital, and the Monorail train in 6th of October City, which starts from 6th of October City in Cairo, and operates and maintains them for a period of 15 years.
The program is targeted at low and middle income citizens.
The number of beneficiaries also rose slightly by 0.5 percent.
Egypt is receiving €1 billion during that period.
The IMF staff team and the Egyptian authorities have reached a staff-level agreement on the first review of Egypt’s economic program supported by the IMF’s $5.2 billion Stand-by Arrangement
The loan will also strengthen farmers’ agribusinesses and improve their financial wellbeing through financing purchases of various agricultural commodities such as hazelnuts, dry dairy products, grain and onions in selected countries of operation.
The proceeds of the proposed loan will be on-lent to local private small and medium-sized enterprises and to corporates, supporting them in bridging liquidity needs.
The loan agreement was signed by Minister of International Cooperation, Rania Al-Mashat, and Chairman of the Fund Abdul Rahman bin Abdullah Al-Hamidi.
Abu El Naga clarified that the first tranche worth $2 billion.