EIB to provide Egypt €150 million for food sector

By Yomna Yasser On Nov 24, 2022

Egypt is set to receive a €150 million ($156.3 million) loan in early 2023 from the European Investment Bank (EIB) to help the North African country overcome the current global food crisis, said senior official on Wednesday.

Eefje Schmid, head of the Policy and Impact Unit at the EIB Global Strategy and Partnerships Department, said food is part of Egypt’s Country Platform for the Nexus of Water, Food and Energy (NWFE) Programme. The programme was launched by the Egyptian government in July 2022 to connect green development projects with the water, food, and energy sectors,

The programme is meant to speed up Egypt’s climate agenda by mobilising climate finance and private investments to support its green transition.

Egypt’s estimated needs amount to $10 billion for the energy sector at NWFE progrmme between 2023 and 2030, the EIB official said, explaining that this is a critical period during which climate action should be activated before it is too late.

The EIB annually provides Egypt at least €1 billion, she said.

She voiced commitment to financing high-quality green energy projects with the help of the private sector.

The EIB normally finances up to 50 percent of the project cost, also hoping to attract private sector financers, Schmid added.

The EIB is also seeking to finalise its €78 million agreement with the Egyptian government to help it implement a wastewater treatment project in Helwan, Schmid said. The ventures are part of the NWFE programme that address water problems, she added.

The bank provided Egypt with €1 billion – including €531 million for climate – last year and increased support to sustainable transport, climate action, water, and business investment across the country.

In addition, the EIB is keen on finalising its €78 million (1.9 billion Egyptian pounds) agreement with Cairo to help implement two wastewater projects in Helwan, and to support the upgrade of the 118 km Tanta-El Mansoura-Damietta railway line in the Delta region, with €22 million ($7.3 billion pounds).