Cairo: Egypt's Ministry of Planning, Economic Development, and International Cooperation has announced a landmark agreement marking the country's first sustainability-linked loan. The $100 million loan, signed between the European Bank for Reconstruction and Development (EBRD) and Banque Misr, signifies a pivotal step in integrating sustainability into Egypt's financial framework.
According to State Information Service Egypt, the signing ceremony was attended by key figures, including Rania Al-Mashat, Egypt's Minister of Planning and Governor at the EBRD; Hisham Okasha, CEO of Banque Misr; Francis Malige, EBRD Managing Director for Financial Institutions; and Mark Davis, EBRD Regional Director for the Southern and Eastern Mediterranean. Al-Mashat emphasized the alignment of this agreement with Egypt's strategy of fostering green finance and empowering the private sector's role in sustainable development.
Since 2020, Egypt has secured over $15.6 billion in concessional financing for the private sector, with a significant portion directed toward financial institutions. The newly signed loan is part of a broader effort to enhance international financing access for local banks and businesses. The Ministry has also initiated a cooperation protocol with the Federation of Egyptian Banks to boost financing tools via the Hafiz platform, facilitating connections between lenders and private sector projects in need of financial and technical support.
The EBRD, dedicating a large portion of its global portfolio to the private sector, has focused over 28 percent of its operations in Egypt on financial institutions. Al-Mashat highlighted this approach as a reflection of the EBRD's understanding of local market needs and the banking sector's capabilities. She acknowledged the Central Bank of Egypt (CBE) and the Financial Regulatory Authority for creating an environment conducive to innovation in financial products and services.
Al-Mashat cited the success of Egypt's NWFE platform, a flagship climate-finance initiative, which has gained international recognition, including accolades at the 4th International Conference on Financing for Development. Despite economic challenges, Egypt achieved a GDP growth rate of 4.7 percent in the third quarter of 2025, with private investments comprising over 60 percent of total investments.
The Ministry's new cooperation model with Egyptian banks aims to expand access to concessional financing, particularly for SMEs. The model seeks to facilitate data sharing, streamline application processes, and enhance advisory support through digital platforms. Al-Mashat concluded by asserting that the initiative is about more than funding; it represents an effort to embed sustainable finance into the national development framework.