The Central Bank of Egypt (CBE) signed on Wednesday a memorandum of understanding (MoU) with the French Development Agency (AFD) to launch the Finance in Common Programme. The programme aims to integrate sustainable finance principles within the Egyptian financial sector and boost access to sustainable financing for micro, small, and medium-sized enterprises (MSMEs), the CBE said in a statement. CBE Governor Hassan Abdalla signed the MoU with Clémence Vidal De La Blache, AFD's Country Director for Egypt, in the presence of Eric Chevallier, French Ambassador to Egypt. AFD's Finance in Common Programme aligns with the UN's Sustainable Development Goals (SDGs) and focuses on collaboration with financial institutions, banks, and regulatory authorities. Through technical assistance, capacity-building programmes, and credit facilities for participating banks, Finance in Common will encourage financing projects that prioritise environmental and social considerations. CBE's partnership with AFD will provide the Egyptian banking sector with technical support in areas like climate action, environmental risk management, and sustainable finance reporting frameworks. This aligns with Egypt's existing sustainability and climate strategies and paves the way for the banking sector to play a more significant role in addressing environmental and social challenges. This co-operation signifies the CBE's commitment to implementing international best practices in sustainable finance, recognising the critical role the banking sector plays in achieving a more sustainable future.
