Ahmed Kamel – Egypt Daily News
Egypt has moved a step closer to accelerating its green industrial transition after signing a €53.8 million concessional financing and grant agreement with the French Development Agency (AFD) and the European Investment Bank (EIB). The deal, concluded on Sunday, forms part of the broader Green Sustainable Industries (GSI) Programme, an initiative designed to help the country modernize its industrial base, cut emissions, and meet rising global environmental standards.
The announcement was made during a high-level event attended by senior government officials, private-sector leaders and representatives from key industrial sectors. Alongside the financing package, the agreement includes an €8.8 million consultancy component funded by the European Union and managed by the EIB, which will provide technical support, feasibility studies and policy guidance to ensure effective implementation.
Planning Minister Rania Al-Mashat said the programme signals strong international confidence in Egypt’s long-term sustainability agenda. She noted that the GSI aims to support industrial investments that curb pollution, reduce greenhouse-gas emissions and improve both energy and resource efficiency. According to the minister, these efforts are essential for boosting competitiveness, particularly as global markets increasingly prioritise environmentally compliant goods.
The newly signed €53.8 million tranche forms part of a much larger €271 million financing package for the GSI initiative. The total includes €30 million in EU grants, €135 million in EIB financing and €45 million from the AFD. Funding will prioritise projects in energy- and resource-intensive sectors such as iron and steel, cement, chemicals, food processing and waste management, industries considered critical to Egypt’s growth but also among the most challenging in terms of environmental impact.
Manal Awad, Minister of Local Development and Acting Minister of Environment, emphasized that the programme is not only about pollution reduction but also about enhancing Egypt’s export readiness. She said the initiative aims to help local industries comply with international environmental regulations, particularly those that increasingly determine access to European and global markets. Awad added that by localising clean technologies, promoting green innovation and improving production efficiency, the programme is expected to reduce costs for manufacturers and generate new employment opportunities.
The GSI Programme represents one of the most comprehensive attempts to date to align Egypt’s industrial sector with global sustainability trends. As countries tighten carbon-related rules and green product requirements, Egypt hopes the initiative will position its industries to compete more effectively, attract investment and support long-term economic resilience.
