The Green for Growth Fund has been granted approval from the Central Bank of Egypt to provide Tier II capital to banks in the country. The approval will enable the impact fund to commit supplementary capital to help banks in the country increase their support for Egypt’s economic development and sustainability transition.
By strengthening the capital base of banks in Egypt, GGF aims to further mitigate climate change and promote energy efficiency and renewable energy measures in the country.
“The GGF has been a significant driver of green finance in the Middle East and North Africa since 2016 and remains resolute in its mission to create meaningful green impact by financing measures that mitigate climate change and foster sustainable economic development. The fund accomplishes this by channeling dedicated financing through local partner financial institutions, enabling the GGF to support businesses and households while building catalytic green finance capacities within the financial sector,” the announcement reads.
The impact fund channels dedicated financing through local partner financial institutions
“We are delighted by the approval from the Central Bank of Egypt as this enables us to offer our partners Tier II capital which will ultimately help them operate with increased confidence and agility, meeting the needs of businesses and households while systemically bolstering the availability of tailored green financing. We will continue to demonstrate our commitment towards promoting sustainable finance in Egypt and stand ready to support the CBE and other stakeholders in the country in their sustainability transition, including potential joint initiatives at the COP 27,” GGF Chairman Olaf Zymelka said.
Zymelka: We will continue to demonstrate our commitment towards promoting sustainable finance in Egypt and stand ready to support the CBE and other stakeholders in the country in their sustainability transition
The Green for Growth Fund invests in measures designed to cut energy use and CO2 emissions, and improve resource efficiency in 19 markets across Southeast Europe, the Caucasus, Ukraine, Moldova, the Middle East and North Africa. The fund provides such financing directly to renewable energy projects, corporates and municipalities or indirectly via selected financial institutions.
The GGF’s Technical Assistance Facility maximizes the fund’s investment impact through support for capacity building at local financial institutions and partners. The fund’s impact management system, through its advisor Finance in Motion, underwent an independent verification by impact auditor BlueMark affirming strong Operating Principles for Impact Management alignment in 2021.
The Green for Growth Fund was initiated as a public-private partnership in December 2009 by Germany’s KfW Development Bank and the European Investment Bank, with financial support from the European Commission, the German Federal Ministry for Economic Cooperation and Development, the European Bank for Reconstruction and Development, and the Austrian Development Bank (OeEB).
The fund said its growing investor base comprises donor agencies, international financial institutions and institutional private investors, including the International Finance Corporation, the Dutch development bank FMO, and the German ethical bank GLS. The GGF is advised by Finance in Motion GmbH. MACS Energy & Water GmbH, Frankfurt am Main acts as the technical advisor.