EU–Egypt Investment Guarantees for Development Mechanism
Mobilizing Private Capital. De-risking Development. Powering Egypt’s Green Future.
About the Mechanism
The EU–Egypt Investment Guarantees for Development Mechanism is a core initiative under EU-Egypt Strategic and Comprehensive Partnership designed to accelerate green, resilient, and inclusive growth by leveraging guarantees under the European Fund for Sustainable Development Plus (EFSD+). The initiative will work as an Investment Platform chaired by the Egyptian Government and the EU Commission and with the participation of International Financial Institutions and private investors, to mobilise up to €5 billion investments in Egypt, as announced under the EU–Egypt Strategic and Comprehensive Partnership and reaffirmed at the June 2024 Investment Conference.
Strategic Importance
Bridging the Risk Gap: Facilitates private investment by mitigating credit and political risks associated with large-scale and innovative projects.
Mobilizing Capital: Unlocks funding from development finance institutions (DFIs), to support commercial banks and allow them to extend credit lines to SMEs and climate-focused investors.
Alignment with National Priorities: Supports Egypt’s national development agenda, including the Nexus of Water, Food & Energy (NWFE) Program.
Partnership with the EU: Advances the objectives of the EU–Egypt Green Partnership, reinforcing bilateral cooperation on sustainable development.
Target Beneficiaries
Development Finance Institutions (DFIs):
DFIs reviewing projects aligned with their mandates but constrained by risk limits may leverage EFSD+ guarantees to:
Offset risk in green investments by large companies by extending guarantees to them.
Participate in financing structures with commercial banks to extend credit lines to SMEs at concessional rates to increase exposure in priority sectors such as clean technology, logistics, and green mobility.
Large Companies:
If you are a large company looking to benefit from EFSD+, please refer to the following service pages
EFSD+ guarantees are implemented with established partners, including the EIB, EBRD, AFD, KfW, and others.
Commercial Banks:
Banks encountering viable investment opportunities exceeding their standard risk appetite may utilize this mechanism to:
Co-invest with DFIs, with partial risk coverage by the EU;
Engage in blended finance structures with enhanced security;
Offer a range of financial products, including project finance and working capital, in a de-risked environment.
Banks that have benefited from the EFSD+ and have been enabled to extend lines of credit to SMEs include the Commercial International Bank Egypt (CIB) and the Qatar National Bank (QNB). To learn more about how Banks are benefiting from EFSD+, refer to the following pages:
Note: EFSD+ guarantees for commercial banks require the involvement of at least one DFI in the financing structure.
SMEs:
Small and Medium Enterprises can benefit from EFSD+ by applying to commercial banks that have received financing from International Financial Institutions, backed by EFSD+
If you are an SME looking to benefit from EFSD+, please refer to the following service page
Eligibility Criteria
Eligibility is primarily determined by the DFI, or commercial bank, participating in the financing arrangement. Common criteria include:
Alignment with the objectives of the EU–Egypt green transition;
Operation in renewable energy solutions and energy efficiency including:
solar
wind
hydrogen
low-emissions fuels
resilient power grids
energy storage
carbon capture technologies
Other sectors include water, sustainable transport, and agri-tech.
Demonstrable development impact (e.g., job creation, resilience, decarbonization);
Financial structures involving at least one DFI;
Project status at pre-feasibility, feasibility, or bankable stages.
Contact and Further Information
For further information, inquiries, or assistance, please contact:
Private Sector Engagement Unit: Ministry of Planning, Economic Development and International Cooperation privatesector@moic.gov.eg
Disclaimer: Funded by the European Union. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union or the European Commission' Directorate-General for the Middle East, North Africa and the Gulf (DG MENA). Neither the European Union nor DG MENA can be held responsible for them.
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