In recent hours, the International Finance Corporation announced the injection of investments worth $605 million into 3 new projects in Egypt, including green tourism, with the aim of promoting economic development in vital sectors… Let’s see what the story is in this video.
In order for us to know which green economy means a clean, environmentally friendly and healthy economy, the whole world is moving toward the green economy because. Reduces climate change disasters that have cost the world trillions of dollars.
Head of the International Finance Corporation for African Affairs, she signed the financing of green projects such as climate finance, sustainable tourism, and expanding the scope of financing directed to small, medium and micro companies, and stressed the institution’s commitment to supporting the private sector in Egypt and contributing to achieving comprehensive economic development.
The three projects include an investment worth $300 million in sustainability bonds issued by the Arab African International Bank, which is the first sustainability bond in Egypt and the largest of its kind issued by a private bank in Africa.
In addition to the International Finance Corporation, the European Bank for Reconstruction and Development (EBRD) and the British International Investment Corporation (BII) participated in this bond with a value of $100 million each, and 75% of the proceeds of this bond will be directed to green financing, including improving the efficiency of using… Energy in the industrial sector, as well as supporting small-scale renewable energy projects and the construction of green buildings.
Also, 25% of its value will be allocated to support social assets such as comprehensive financing and support for micro, small and medium business companies, all in addition to sustainability-related financing worth $155 million to Orascom Development Egypt in support of green tourism in Egypt by improving the efficiency of energy and water use and reducing Greenhouse gas emissions at hotels in El Gouna on the Red Sea coast.
The goal of this project is to reduce energy consumption from non-renewable sources in hotels by 50%, in addition to reducing water consumption by no less than 20%. This financing will also be used to restructure part of Orascom’s existing debts and improve the position of its debts.
And the financing does not stop there. Also, $150 million was allocated to the Commercial International Bank to strengthen the bank’s financial position in light of the current economic challenges, and to support its commitment to expanding the scope of financing directed to micro, small and medium enterprises, including women-owned business enterprises. This financing will contribute to creating job opportunities, promoting economic development, and reducing the financing gap between genders in Egypt.
We can say that the volume of investments reflects the strength of the partnership between the International Finance Corporation and Egypt, and the joint support to achieve sustainable private sector development, by enhancing financial inclusion of micro, small and medium enterprises and accelerating the pace of transition towards a green economy, and the mission is still ongoing to support the private sector to achieve its potential. The entire economy of the country.
Therefore, the Egyptian government is very interested in these investments, and aims to enhance the private sector’s participation in economic activities by building strong partnerships. The International Finance Corporation will be a major partner in achieving these goals.
We can say that this number of new investments reflects Egypt’s commitment to achieving comprehensive and sustainable economic growth, in addition to stimulating climate action, and confirming the pivotal role of the private sector in achieving a sustainable and more resilient future.
