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Doaa Moneim – Ahram Online
“The European Bank for Reconstruction and Development (EBRD) supports Egypt’s efforts accelerating green transformation and investment ahead of it hosting the UN Climate Change Conference 2022 (COP27) in November”, said EBRD’s Vice President for Policy and Partnerships Mark Bowman.
Bowman spoke to Ahram Online during his seven-day visit to Egypt, which concluded on Monday.In the visit he followed up on Egyptian efforts in preparation for COP27, launch the country strategy for Egypt (2022-2027) and set a cooperation roadmap for the government’s transition to a low-carbon economy.
“COP27 is a real opportunity for Egypt to set out its ambition for the future and its plans to decarbonise its economy as well as designing a timetable towards a net-zero economy. The climate crisis is a serious global challenge and Egypt has made good efforts in this area,” Bowman explained.
He added that “Egypt would achieve its goal to become a regional hub for renewable energy, given the country enjoys an abundance of natural resources including sun, wind and land”.
Regarding the EBRD’s country strategy for Egypt through 2027, Bowman said “the bank’s focus is on three key priorities, building a more inclusive economy for women and young people in local businesses, increasing the country’s competitiveness within the private sector and accelerating Egypt’s green transformation”. The strategy follows Egyptian commitments to transition towards a green economy to increase investment in human capital and develop infrastructure for a green and sustainable transport sector.
“The private sector is a significant priority for the EBRD in the Egyptian market. The bank is working with the government to increase the role of the private sector in the country’s economy”, he added.
“It is very clear that the role of the private sector is necessary to generate high-quality jobs, especially amid ongoing challenges, which hit all the markets including Egypt. I am struck by the progress that the authorities have made over recent years in macroeconomic reform through working with the International Monetary Fund (IMF) and how well the Egyptian economy has coped with the COVID-19 crisis. Yet, there is more to be done in regards with enabling the private sector to generate the growth necessary for the Egyptian economy”, Bowman explained.
According to the EBRD official, “the public-private partnerships (PPPs) play a role in this respect. The best way to increase the private sector’s role in the economy will be through regulations and a proper business environment to encourage the private sector to invest in the domestic market.
Bowman expounded “the EBRD invests over €1Billion in Egypt annually, with a 75% dedicated to support private sector companies. The bank is working with the government and businesses to improve the business environment. EBRD plans to cooperate with the Sovereign Fund of Egypt (TSFE) to identify projects the bank can support”.
“I think one area that is particularly promising in this context is the water desalination programme, powered by the TSFE. We are in close discussion with the fund on some of the early-stage ideas of the privatisation programme as well”.
“We would ultimately partner in projects which will come out of this process and the TSFE plans for equity injections. We are willing to avail finances to the winning bidders of such projects in the future as well as in the ultimate financing package”, Bowmen illustrated.
“We cooperate with the Suez Canal Authority in terms of policy engagement. Our cooperation includes improving the investors’ experience to increase access to investment opportunities which the zone enjoys. It can be done through a one-stop-shop system, which provides a single point of contact to make the process easier for them to operate. This could lead the EBRD to invest in the zone in the future, yet we have not decided that yet”, Bowman explained.
He said that the SCA has promising investment opportunities and impressive plans for green hydrogen production.
During the EBRD’s country strategy launch event, the Egyptian Ministry of Electricity and Renewable Energy and the Ministry of Petroleum and Mineral Resources inked a memorandum of understanding (MoU) aiming to provide the required technical support for a local low-carbon hydrogen supply, a technical study, economic and regulatory feasibility of developing hydrogen supply chains.
“Green hydrogen and renewable energy like solar and wind have enormous potential to replace fossil fuel use in Egypt, which and falls in line with recent action to create a zero-carbon economy globally. Through this MoU, we will work with the Egyptian authorities to develop a strategy for green hydrogen. Egypt has made great progress regarding the green transformation and has a very good story to tell in this regard”, he added.
Egypt is a founding member of the EBRD. The bank has invested approximately €7.2 Billion across 127 projects since the start of its operations in the country in 2012.
