German development bank KfW's Green for Growth Fund (GGF) announced on Monday it had been granted a licence from Egypt's central bank to act as a "tier-two" lender 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, GGF statement read. By strengthening the capital base of banks in Egypt, GGF said it 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 statement further read. "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," Egypt is currently the largest of the 17 target countries of GGF, with more than €157 million ($177.6 million) in investments has been disbursed so far across eight partner institutions in the country. "We are delighted by the approval from the Central Bank of Egypt (CBE) 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." GGF Chairman Olaf Zymelka said. Green for Growth Fund (GGF) Chairman Olaf Zymelka (GGF photo) "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," The Fund will continue to demonstrate its commitment towards promoting sustainable finance in Egypt and stand ready to support the CBE and other stakeholders in the country in their sustainability transition, Zymelka added. The GGF was initiated as a public-private partnership in December 2009 by Germany's KfW Development Bank and the European Investment Bank (EIB), with financial support from the European Commission, the German Federal Ministry for Economic Cooperation and Development, the European Bank for Reconstruction and Development (EBRD), and the Austrian Development Bank (OeEB). The 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. It provides such financing directly to renewable energy projects, corporates and municipalities or indirectly via selected financial institutions.
