Cairo: Minister of Industry Khaled Hashem met with European Bank for Reconstruction and Development (EBRD) officials, including Vice President for Policy and Partnerships Mark Bowman and Director for Corporate Affairs Jacqui Powell, to discuss the Bank's projects in Egypt. The meeting focused on strengthening cooperation in the fields of industry, the green economy, water efficiency, and support for small and medium-sized enterprises.
According to State Information Service Egypt, the discussions highlighted the EBRD's role in supporting the development of a competitive and sustainable private sector in Egypt, with an emphasis on industry as a key driver for growth and a major component of efforts to reduce carbon emissions. The meeting also addressed the EBRD's initiatives to assist the private sector in transitioning to renewable energy, aligning with Egypt's goal to increase the share of renewables in its energy mix to 45% by 2028.
The talks further reviewed the Bank's green economy projects under the Climate Investment Funds, aimed at providing concessional green financing to developing economies and encouraging private-sector investment in sustainable development. Egypt is one of seven countries selected to receive up to 250 million euros in concessional financing from these funds, with the EBRD leading the initiative in collaboration with the Egyptian government.
Minister Hashem emphasized Egypt's industrial strategy to increase reliance on renewable energy through initiatives like 'Industrial Sun' to install solar power plants in factories. The ministry's collaboration with the United Nations Development Program on the Solar Energy Transition Initiative aims to install solar systems at state-owned industrial facilities and improve energy efficiency in factories.
Efforts to reduce water consumption in industry by promoting closed-loop water systems and increasing demand for water-reuse plants were also discussed, with the minister expressing interest in EBRD support for private-sector companies in implementing these systems. He noted recent foreign investments in solar power equipment and electric vehicle battery manufacturing, highlighting growing investor interest in green transition industries.
Minister Hashem also outlined efforts to strengthen supply chains and reduce fuel use, particularly in the iron and steel sectors, and increase the use of alternative fuels in manufacturing. The ministry aims to expand small and medium-sized industrial enterprises, linking them to supply chains and attracting European SMEs and entrepreneurs to invest in Egypt, enhancing technology localization and benefiting from Egypt's strategic position as a manufacturing and export hub.
To ease the process for small industrial investors, the ministry has introduced measures such as a lease-to-own system for industrial land, simplified licensing procedures, and the establishment of a unit at the Industrial Modernization Centre to provide technical support and guide small manufacturers toward investment opportunities.
Finally, Minister Hashem mentioned plans to work with the EBRD on developing infrastructure financing programs for industrial zones lacking adequate facilities, further supporting the growth and development of Egypt's industrial sector.