Latest news with #EFSD+)
Fibre2Fashion
02-07-2025
- Business
- Fibre2Fashion
Pact to offer funds to de-risk investments, expand EIB ops outside EU
The European Commission and the European Investment Bank (EIB) recently announced a new type of guarantee agreement that will provide up to €5 billion to de-risk investments and expand EIB operations outside the European Union (EU). The guarantee has the potential to unlock up to €10 billion in funding for critical projects in clean energy, green infrastructure and access to finance for small and medium enterprises (SMEs) in partner countries. The European Commission and the European Investment Bank have announced a new guarantee agreement that will provide up to €5 billion to de-risk investments and expand EIB operations outside the EU. The guarantee can unlock up to €10 billion in funding for critical projects in clean energy, green infrastructure and access to finance for SMEs in partner countries in North Africa and the Middle East. This new guarantee is designed to support an increased number of companies with a state participation or public organisations that operate at local or regional levels in partner countries outside of the EU. The guarantee can also apply to entities that borrow money from financial markets on their own terms, without state backing, a release from the Commission said. The previous guarantees used to support only state-backed projects. It will be more flexible and faster now to back up investments. The announced came at the 4th International Conference on Financing for Development. The new guarantee will advance Global Gateway investments by financing projects of public interest that are considered too risky for traditional lenders while ensuring affordable borrowing costs for partner countries. Global Gateway is the EU's strategy to boost global connectivity through sustainable partnerships. Launched in December 2021, it seeks to mobilise up to €300 billion in public and private investments by 2027 to support projects in digital, climate and energy, transport, health and education around the world. The guarantee will support investments in energy, hard infrastructure, economic resilience and SMEs in the North of Africa and the Middle East. It will also help finance telecommunication and energy infrastructure projects and support municipalities in the EU's enlargement and Eastern Neighbourhood regions, contributing strongly to the EU's accession priorities. At the same time, the guarantee will enable for instance the development of the Trans-Caspian Corridor in Central Asia, enhance supply chain security for critical raw materials and advance the Global Gateway Investment Agenda in Latin America and the Caribbean. The announced guarantee falls under the European Fund for Sustainable Development Plus (EFSD+), a key financing tool for the Global Gateway. It is part of the €26.7-billion guarantee envelope to support EIB lending outside the EU for the period 2021-2027. Fibre2Fashion News Desk (DS)
Daily News Egypt
16-06-2025
- Business
- Daily News Egypt
BII, AfDB, EBRD to provide $479.1m for Egypt solar and battery project
A consortium of development banks including British International Investment (BII), the African Development Bank (AfDB) and the European Bank for Reconstruction and Development (EBRD) is providing $479.1m in financing for a 1.1 gigawatt (GW) solar power plant integrated with a 200 megawatt-hour (MWh) battery storage system in Egypt. The financing will be provided to Obelisk Solar Power SAE, a special-purpose vehicle owned by Norwegian renewable energy developer Scatec ASA, to develop the facility in the country's Nagaa Hammadi region. The project, which will be Egypt's first integrated solar and battery storage plant of this scale, is expected to enhance grid stability and help manage peak electricity demand. The total estimated capital expenditure for the project is $590m, with the blended financing package covering approximately 80 per cent of the cost. The plant is expected to generate around 3,000 GWh of clean energy annually, avoiding up to 1.4 million metric tonnes of carbon dioxide emissions per year and supporting Egypt's goal to have renewables constitute 42 per cent of its power mix by 2030. The facility will be built in two phases by Scatec. The first phase, comprising 561 MW of solar capacity and a 100 MW/200 MWh battery energy storage system (BESS), is scheduled to begin operations in the first half of 2026. The second phase, with 564 MW of solar capacity, is planned to start in the second half of 2026. Energy generated will be sold under a 25-year, US dollar-denominated power purchase agreement with the Egyptian Electricity Transmission Company, which is backed by a sovereign guarantee. The financing from the three development finance institutions includes a mix of loans, concessional funding and grants. The AfDB's financing package totals $184.1m. This includes $125.5m of ordinary resources, $20m in concessional funding from the Sustainable Energy Fund for Africa, and $18.6m from the Canada-African Development Bank Climate Fund. A further $20m will be channelled from the CIF's Clean Technology Fund through the AfDB. The EBRD is providing a financing package of up to $173.5m. Of this, $101.9m will be supported by a European Fund for Sustainable Development (EFSD+) first-loss cover guarantee for the initial 18 years. This is supplemented by a $6.5m grant from the EBRD Shareholder Special Fund. BII's contribution, subject to drawdown conditions, includes a $100m concessional loan and a $15m returnable grant intended to lower the cost of the battery storage component, making it more financially viable. Sherine Shohdy, Head of Egypt Office and Coverage Director, BII, said: 'Our financing in this landmark project reflects BII's commitment to pioneering the next generation of renewable energy infrastructure to power Egypt's sustainable future. By powering local businesses with clean, reliable energy, we are supporting economic growth and job creation at the heart of communities. This builds on our $190 million agreement to finance the 1.1 GW Gulf of Suez Wind Farm, highlighting our pivotal role in driving the energy transition in Egypt and North Africa.' Wale Shonibare, the AfDB's Director of Energy Financial Solutions, Policy and Regulations, noted: 'This project exemplifies the scale of renewable energy potential across Africa and demonstrates how strong partnerships and innovative solutions can advance the energy transition and foster sustainable economic development. It has a high demonstration and replication potential for similar initiatives across the continent.' Harry Boyd-Carpenter, EBRD Managing Director for Sustainable Infrastructure, said: 'We are delighted to work with our longstanding partners Scatec, the AfDB and BII to support this transformative project. It takes Egypt's green energy transition to another level by harnessing the power of the sun, not just during the day but also at night, thanks to the combination of solar and battery storage. The project addresses the growing demand for electricity and reduces the need to import expensive fossil fuels. It contributes to the goals of Egypt's flagship Nexus on Water, Food and Energy that was launched at COP27 in Sharm el-Sheikh, and for which the EBRD is Egypt's leading partner on the energy pillar.' Terje Pilskog, CEO of Scatec, commented: 'This project marks a major milestone for Scatec. It proves our ability to deliver large-scale hybrid projects. We are proud to partner with leading development finance institutions to support Egypt's clean energy ambitions, and we look forward to delivering this important project together with our partners.' Stefano Sannino, Director-General of the Directorate-General for the Middle East, North Africa and the Gulf at the European Commission, said: 'Today, the European Union (EU) launches the EU-Egypt Investment Guarantee for Development Mechanism, a strategic platform designed to fast-track a significant pipeline of investment projects to deliver large-scale financing solutions in Egypt. This is a major milestone in the implementation of the EU-Egypt Strategic Partnership. This particular project is a concrete example of a fruitful collaboration between the EU and the EBRD for supporting green transition in the country, through a large-scale investment. The EU guarantee allows the EBRD to provide a loan alongside other financiers to finance an innovative integrated solution which can attract private investors.'
See - Sada Elbalad
14-06-2025
- Business
- See - Sada Elbalad
ُEU Helps Boosting Egypt's Green Transition
By Ahmad El-Assasy On 15 June, the European Union and the Government of Egypt will launch the EU-Egypt Investment Guarantee for Development Mechanism. This platform will attract investments to high impact projects in areas such as clean energy, water and wastewater management and sustainable agriculture. It will also support digital transformation, and the development of small and medium-sized enterprises (SMEs). The platform aims to mobilise up to €5 billion in investments by 2027. This includes €1.8 billion announced as part of the EU-Egypt Strategic and Comprehensive Partnership. To achieve this, the platform will leverage EU resources from the European Fund for Sustainable Development Plus (EFSD+). It will also draw resources from European and International Financial Institutions (IFIs) that implement EU guarantees in close coordination with Member States and the private sector. It marks a key milestone under the EU-Egypt Strategic and Comprehensive Partnership and contributes to the EU's Global Gateway strategy. read more Gold prices rise, 21 Karat at EGP 3685 NATO's Role in Israeli-Palestinian Conflict US Expresses 'Strong Opposition' to New Turkish Military Operation in Syria Shoukry Meets Director-General of FAO Lavrov: confrontation bet. nuclear powers must be avoided News Iran Summons French Ambassador over Foreign Minister Remarks News Aboul Gheit Condemns Israeli Escalation in West Bank News Greek PM: Athens Plays Key Role in Improving Energy Security in Region News One Person Injured in Explosion at Ukrainian Embassy in Madrid News China Launches Largest Ever Aircraft Carrier Sports Former Al Zamalek Player Ibrahim Shika Passes away after Long Battle with Cancer Lifestyle Get to Know 2025 Eid Al Adha Prayer Times in Egypt Business Fear & Greed Index Plummets to Lowest Level Ever Recorded amid Global Trade War Arts & Culture Zahi Hawass: Claims of Columns Beneath the Pyramid of Khafre Are Lies News Flights suspended at Port Sudan Airport after Drone Attacks News Shell Unveils Cost-Cutting, LNG Growth Plan Videos & Features Video: Trending Lifestyle TikToker Valeria Márquez Shot Dead during Live Stream Technology 50-Year Soviet Spacecraft 'Kosmos 482' Crashes into Indian Ocean News 3 Killed in Shooting Attack in Thailand
Web Release
10-04-2025
- Business
- Web Release
EBRD and EU partner with Finéa to support MSMEs in earthquake-affected regions of Morocco
The European Bank for Reconstruction and Development (EBRD) is supporting micro, small and medium-sized enterprises (MSMEs) in? Morocco by lending up to €23.5 million (to be provided in local currency) to Finéa, a financing company that specialises in helping MSMEs to participate in public and private tender procedures in the country. The loan will benefit from first loss risk cover provided by the European Union (EU) through its European Fund for Sustainable Development Plus (EFSD+). This financing will be lent on to private MSMEs, helping to foster more competitive markets and enhance access to public and private tender procedures in Morocco in areas such as municipal lighting, the supplying of public schools and hospitals, and infrastructure development. This financing package is being provided under the earthquake response facility that the EBRD established to help rebuild Morocco's economy and support affected areas following the devastating earthquake in September 2023. While it will focus on small businesses in earthquake-affected regions, it will also help to address financing gaps faced by MSMEs in other financially underserved parts of the country outside Casablanca and Rabat. The facility will be accompanied by a comprehensive technical cooperation package aimed at developing a digital platform for Finéa's new factoring and supply-chain financing products and integrating that platform into the company's banking systems. This new platform OR financial product will help Finéa to cater for the specific financial needs of individual MSMEs. Established in 1950, Finéa is a Bank Al-Maghrib-accredited financing company incorporated in Morocco. It is a subsidiary of the Caisse de Dépôt et de Gestion (CDG), a state-owned financial institution dedicated to serving the public interest. It aims to support the development of Moroccan MSMEs by facilitating access to financing and public and private tender procedures. It offers financing solutions which are required by MSMEs at various stages of such tender procedures – mainly cash advances and guarantees. At year-end 2023, Finéa had total assets of €216 million. EFSD+ was established in June 2021 and offers EU partner countries assistance with key investments through grants or financial guarantees. In this way, the EU mobilises additional financial resources from the public and private sectors in support of sustainable development. EFSD+ has a total global guarantee capacity of €39.8 billion for the period from 2021 to 2027, of which €22.5 billion will be used in the EU's enlargement and neighbourhood regions. Morocco is a founding member of the EBRD. Since 2012, the Bank has invested more than €5.3 billion in the country through 112 projects to date. The Bank's focus in Morocco is on supporting sustainable energy, direct and indirect financing of private enterprises, infrastructure reform and non?sovereign financing.
Egypt Today
03-03-2025
- Business
- Egypt Today
Egypt and the EU to Launch €1.8 Billion Investment Guarantee Initiative
CAIRO – 3 March 2025: Egypt's Ministry of Planning, Economic Development, and International Cooperation is set to introduce a new Investment Guarantees for Development Mechanism in collaboration with the European Union (EU), according to Minister Rania Al-Mashat. This initiative seeks to activate €1.8 billion in investment guarantees, aiming to attract up to €5 billion in investments to support green transition sectors and other key priority areas. The announcement was made during a meeting between Al-Mashat and Dubravka Šuica, the EU Commissioner for the Mediterranean, where discussions also focused on the second phase of the Macroeconomic Support and Budget Assistance Mechanism, valued at €4 billion. Al-Mashat underscored the strong strategic partnership between Egypt and the EU, which is built on six core pillars: politics, economy, trade, security, migration, and human development. She highlighted that the EU has allocated €7.4 billion in development financing for Egypt between 2025 and 2027, aiming to enhance economic stability, stimulate investment, and support essential sectors for sustainable growth. The Ministry of Planning, in coordination with relevant government bodies, is currently working on developing programs and projects to be funded through these grants, ensuring that EU financial support aligns with Egypt's national development priorities. The meeting also explored strategies to enhance private sector participation in investment opportunities, particularly through EU-backed guarantees under the European Fund for Sustainable Development Plus (EFSD+), introduced at the EU Investment Conference. These funds are expected to accelerate sustainable development efforts and expand the role of private enterprises in driving economic growth.
