Cairo: Minister of Industry Khaled Hashem met with Mark Davis, Managing Director for the Southern and Eastern Mediterranean at the European Bank for Reconstruction and Development (EBRD), to review the bank's programs in Egypt. The focus was on supporting green projects in the water, food, and energy sectors, as well as efforts to reduce emissions in the industrial sector.
According to State Information Service Egypt, the discussions centered on EBRD's financing mechanisms in cooperation with international partners, including the Green Climate Fund and the Green Energy Fund. These mechanisms aim to support the private sector, including large companies and small and medium-sized enterprises within supply chains, to adapt to global environmental requirements and enhance competitiveness.
The talks also highlighted EBRD's projects in Egypt, notably the Nexus of Water, Food and Energy (NWFE) Program, which provides concessional financing for green projects. The bank is aiding Egypt's efforts to advance its industrial emissions reduction initiatives to the Climate Investment Funds, a global initiative dedicated to financing emissions reduction in developing countries.
Minister Hashem stated that the ministry is conducting a comprehensive review of the national strategy for the development of Egyptian industry. This strategy focuses on key pillars such as boosting exports, strengthening feeder industries, and increasing the local component in manufacturing. The strategy also emphasizes the transition to a green economy in response to global energy challenges, with efforts to reduce energy consumption in energy-intensive industries by improving operational efficiency and ensuring compliance with the Carbon Border Adjustment Mechanism.
The ministry plans to develop integrated renewable energy schemes within each industrial zone to reduce reliance on the national power grid, lower operating costs for factories, and enable private sector participation in clean energy projects. Efforts are also underway to identify key strategic industries and their associated feeder sectors for prioritization based on raw material availability and production capabilities, along with preparing industrial maps for each region to offer defined opportunities for investors.
Hashem revealed plans to launch innovative financing mechanisms, including industrial investment funds with citizen participation, aimed at channeling financing to promising productive projects and increasing their operational capacity. This is intended to support sustainable economic growth.
Davis noted that EBRD is a key partner for Egypt in implementing energy projects. Through the 'NWFE' program, the bank has mobilized about $3.9 billion in concessional financing, contributing to the addition of 4.2 gigawatts of renewable energy capacity. He emphasized the importance of unifying various financing initiatives under a single platform overseen by the Ministry of Industry to enhance coordination efficiency and maximize program benefits.