Egypt secures USD 62m to advance national green industry transformation

CAIRO, Egypt: Egypt has secured a USD 62 million (EUR 53.8 million) soft loan and grant package from the French Development Agency (AFD) and the European Investment Bank (EIB) to advance its national shift toward sustainable industrial development. The agreement supports a comprehensive programme aimed at lowering industrial emissions, strengthening competitiveness, and expanding green production capabilities across the country.

Driving Egypt’s Green Industrial Agenda

According to a statement issued by the Egyptian Cabinet, the initiative forms part of the government’s broader industrial modernisation strategy.

Minister of Industry and Transport Kamel Al-Wazir noted that the country’s National Strategic Vision for Industrial Development 2025–2030 outlines clear targets: raising the industrial sector’s GDP share from 14% to 20% by 2030, expanding employment from 3.5 million to 7 million, increasing green industries’ contribution to 5% of GDP, and supporting small and vulnerable factories.

Al-Wazir stated: “To implement this strategy and national vision, an urgent plan was developed to advance the national industry as an executive roadmap, based on seven axes. The most important of these are training and qualifying technical workers, particularly in green industries, adopting modern industrial technologies, and expanding green industries.”

The minister added that 28 priority industries have been identified for deepening local, green and low-carbon production, including electric vehicles, pharmaceuticals, chemicals, food processing, and textiles.

Boosting Local Industry and Green Production

As part of the government’s rapid-action plan, Egypt has introduced a series of measures to strengthen sustainable industrial growth. These include:

• Allocating serviced industrial lands, particularly for green and low-emission industries outside residential and agricultural zones.
• Enhancing financing options for eco-friendly manufacturing sectors such as electric vehicles.
• Providing targeted incentives within the national automotive development programme to boost environmentally friendly production.

These steps aim to upgrade Egypt’s industrial readiness for global export markets and ensure alignment with international sustainability standards.

Preparing for the EU Carbon Border Adjustment Mechanism

A major challenge ahead is the European Union’s Carbon Border Adjustment Mechanism (CBAM), expected to come into full effect in 2026. The mechanism will apply to key Egyptian exports such as iron and steel, cement, aluminium, and fertilizers.

Projected carbon-related charges on exports could range between USD 8 billion (EUR 7 billion) and USD 33.4 billion (EUR 29 billion) in the coming years, despite Egypt accounting for just 0.6% of global emissions.

Al-Wazir stressed that the government has already launched an accelerated plan to further curb industrial emissions, coordinated across public and private sector entities.