The US, Germany and other European countries have pledged to provide more than 550 million USD to help Egypt decarbonize its power infrastructure and install new renewable energy capacity

Newsletter

14 Nov 2022

The US, Germany and other European countries have pledged to provide more than 550 million USD to help Egypt decarbonize its power infrastructure and install new renewable energy capacity. Under a political declaration (pdf) with Egypt announced during President Joe Biden’s visit to COP27 on Thursday, the US and Germany agreed to provide more than USD 250 mn for the energy pillar of Egypt’s Nexus on Water, Food and Energy (NWFE) initiative, which aims to close 5-GW of gas-fired power plants and add 10-GW of new wind and solar energy by 2028. This brings to more than USD 1.8 bn the total funding for the energy transition we’ve raised in recent days after our friends at EBRD confirmed on Thursday that they have committed 1 billion USD of private renewable finance, 300 million USD in sovereign finance and grants of 3 million USD from its shareholder special fund. (Arab Finance)

Moreover, Germany and the US will also help us capture billions of cubic meters of natural gas that we currently flare, vent, or allow to leak from oil and gas operations.
Just how much we’re not quite sure: Biden said 4 bn cbm in his speech but the White House fact sheet says 2 billion cbm. NWFE is expected to draw as much as 15 billion USD in investment under agreements Egypt signed with financial institutions and DFIs last week. It is hoped that the energy component of the initiative alone will receive as 10 billion USD in private investment. Egypt has world-class renewable energy resources and is close to markets in Europe and Asia, giving it the potential to transform its own energy sector and become a global hub for green fuels and products. (Arab finance)
The benchmark EGX30 index is up 0.3% year-to-date after rising 1.9% in today’s trading, marking the first time since 13 January the index is in the green on a YTD basis
The EGX30 has been rallying in the past couple of weeks, since Egypt announced it reached a staff-level agreement with the IMF for a 3 billion USD, 46-month loan and moved to a “durably flexible” exchange rate regime. (Hapi Journal)
Mansour Automotive Group plans to produce 15k electric cars in Egypt
Mansour Automotive Group is planning to produce 15,000 electric cars in Egypt over the next three to five years. Mansour revealed that the company planned to import five models of Cadillac electric cars and market them in Egypt by 2025. Mansour noted that he had reduced his stake in Meta Platforms and sold all his shares in Twitter for a “good price”, which he did not identify. By 2024, Mansour aims to increase his environment-focused investments to make up 10% of his total wealth, compared to the current 2%. (Asharq Business)
Delemar Industry Group opens 3 factories with 800 million USD investments
Delemar Industry Group announced the trial operation of three new factories with investments of over EGP 800 million in the industrial zone in the 6th of October City. The new factories include the DPG factory for processed glass with a production capacity of 20,000 tons annually. The other two factories produce aluminum and paintings and bring Delemar’s total production capacity to 50,000 tons annually. (Al Mal)
IFAD pledges 2 billion USD for food projects in Egypt
Egypt’s Nexus of Water, Food, and Energy (NWFE) program has received pledges of 2 billion USD in financing by international financing institutions. Also, on the sidelines of COP27 in Sharm El-Sheikh that the IFAD would contribute 200 million USD to NWFE for five food projects. The food nexus aimed to collect 3.3 billion USD in funding. It is worth noting that NWFE aims to accelerate the national climate agenda through the design, structuring, and preparation of concrete and implementable climate action projects, moving Egypt’s National Climate Change Strategy 2050 from pledges to implementation. (Asharq Business)
Egyptian oil sector inks 7 MoUs with global partners
Egyptian state-owned oil companies signed seven memoranda of understanding (MoUs) with international companies in areas of sustainability and decarbonization. Egyptian Natural Gas Holding Company (EGAS) signed a MoU with Shell Egypt to set a framework for managing and reducing greenhouse gas emissions in the operations of all of EGAS’ partners. Another MoU was signed by EGAS with SeaSplit Technologies and General Electric for the decarbonization of industrial activities in the Suez Gulf. (Hapi Journal)
Egypt inks agreement to join New Development Bank
Egypt signed an agreement to join the New Development Bank (NDB), which will be presented before the House of Representatives in the coming weeks, to pave the way for Egypt’s full membership in the bank. Minister of Finance Mohamed Maait noted that the bank’s strategy aligned with Egypt’s vision for sustainable development, adding that the North African country was looking forward to cooperating with the NDB to achieve sustainable and green growth. (Hapi Journal)
Google invests 700 million USD in Egypt since incorporation
Google has invested around 700 million USD in Egypt since the beginning of its operations in the country, Martin Roeske, Director of Public Policy and Government Relations Middle East and North Africa (MENA) at Google. The company plans to expand its investments in Egypt in the coming period, Roeske added during a meeting with the Egyptian Minister of Trade and Industry. Microsoft offered many programs for the development of small- and medium-sized enterprises (SMEs) and entrepreneurship, and support them upgrade their digital capabilities. (Al Mal)
Schneider Electric opens sustainability hub in Sharm El-Sheikh
Schneider Electric inaugurated its sustainability hub in Sharm El-Sheikh on the sidelines of the United Nations Climate Change Conference (COP27). The new hub is a collaboration between Schneider Electric and North Sinai Governorate in digital transformation and energy management. The facility is situated on an area of 2,000 square meters (sqm) in Sharm El-Sheikh's Central Park. It will feature exhibitions of the latest digital solutions and climate and environment projects by Schneider Electric. (Al Mal)
Geocycle, Lafarge Egypt partner with Elsewedy Electric’s unit to manage waste at Sokhna 360.
Geocycle and Lafarge Egypt signed a cooperation agreement with Elsewedy Industrial Development, a subsidiary of Elsewedy Electric (SWDY), to manage the generated construction and infrastructure waste and the future industrial waste of “Sokhna 360” project. The agreement comes in line with the Suez Canal Economic Zone’s (SCZone) objective to bolster sustainable development projects and green transformation, mainly through the rollout of green fuel projects in the region. (Arab finance)