UNIDO, NBE pledge build capacities, facilitate finance for green SMEs

19 / 07 / 2023

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The National Bank of Egypt (NBE) and the United Nations Industrial Development Organization (UNIDO) have pledged to carry out joint convening and advocacy activities in the Upper Egypt region, build capacities of and facilitate finance for green small and medium sized enterprises (SMEs).

The two sides have joined forces to drive sustainable and inclusive economic and industrial development in Egypt, through enabling access to financial and non-financial services for firms and end-users in the green and circular economy.

Yehia Abo Elfotouh, NBE Deputy Chairman, and Fatou Haidara, Deputy to the Director General and Managing Director of the Directorate of Global Partnerships and External Relations at UNIDO, signed a Joint Declaration, witnessed by Hisham Okasha, NBE Chairman. The Joint Declaration underlines the commitment of the two organizations to a more inclusive and green economy.

UNIDO has been cooperating with NBE in several projects in Egypt, including in the framework of UNIDO GEF5 “The Solar Heating in Industrial Process (SHIP)” project for the establishment of a $ 4 million revolving fund maintained and operated by NBE to promote solar thermal technologies.

Through the Swiss-funded “Inclusive Green Growth in Egypt” project, UNIDO and the NBE have joined hands to catalyze finance for SMEs in the green and circular economy in Egypt, and Upper Egypt specifically; while, at the same time, providing micro, small and medium-sized enterprises with non-financial assistance.

Climate and environment finance requires significant scaling up and incentivization, particularly in rural areas. Against this background, the two organizations focus on achieving greater climate resilience for firms and end-users, with an emphasis on sustainable agriculture and food production, waste management, renewable energy and energy efficiency.

Chairman Okasha expressed NBE’s eagerness to extend the fruitful and constructive cooperation with UNIDO, stressing that the bank pays great attention to emerging companies and specialized SMEs. The Joint Declaration coincides with what Egypt is pursuing in order to create an attractive environment for local and international investment in Upper Egypt, boost the region’s competitiveness and industrial growth.

To this end, UNIDO and NBE pledge to carry out joint convening and advocacy activities in the Upper Egypt region, build capacities of and facilitate finance for green SMEs.

Haidara shared her enthusiasm for this unique partnership, given its importance for promoting environmental sustainability and fostering the creation and growth of SMEs. SMEs represent the social and economic backbone of Africa, where the majority of business ventures are of small and medium size. As such, their development is crucial for advancing inclusive and sustainable industrialization.

By fostering an enabling environment and providing targeted support, the two organizations re-affirmed their commitment to explore partnerships and complementarity to stimulate private investments that align with the United Nations Sustainable Development Goals and contribute to the growth of a green and inclusive economy.