Green investments- CC via Pick Pik
CAIRO - 15 February 2022: Green investments amounted to 30 percent of the current fiscal year’s budget, followed by social initiatives such as “Hayah Karima”, according to Minister of Finance Mohamed Maait.
Maait elaborated that Hayah Karima is the largest project and one of the best development programs in the world, as it contributes to recording real growth that is more diversified and comprehensive and has an impact on people’s lives.
He stressed that the private sector is an authentic partner in achieving green and sustainable growth, which contributes to strengthening the structure of the macro economy, by increasing spending on environmentally friendly development projects, in a way that helps lay the foundations for sustainable investment.
“Egypt recorded a growth rate of 5.3 percent and 5.6 percent of GDP in the years 2017-2018 and 2018-2019 respectively, then it declined during the Corona crisis to 3.6 percent and 3.3 percent in the years 2019-2020 and 2020-2021, respectively, in a way that won the praise of international rating and finance institutions, especially in light of the prevailing global slowdown and global economic challenges,” according to Maait.
The minister noted that during the fiscal year 2022-2023, Egypt targets a growth rate of 5.7 percent, which brings us back to pre-pandemic levels.
The minister indicated, in a statement, that in September 2020, the Ministry of Finance succeeded in offering the first sovereign government issuance of green bonds in the Middle East and North Africa at $750 million, and the subscription was covered by five times the value of the offering, as a result of the increasing demand from investors in Europe and the United States of America, East Asia and the Middle East, which helped reduce financing costs by 50 basis points to 5.25 percent for a period of 5 years, reflecting the confidence of foreign investors in our economic, financial and monetary policies, and their optimistic view of Egypt’s future, along with our commitment to achieving sustainable development policies.
The minister explained that we [the government] aim to put Egypt on the map of sustainable investment to reduce the cost of financing, by diversifying the investor base, noting that there are important projects financed by the "green bond", which contributes to improving the lives of Egyptians.
In November 2021, the Ministry of Finance made available to the public the first environmental impact reports of the proceeds of the green offering in financing 15 national environmentally friendly projects from the total proceeds of green bonds, where 46 percent has been allocated to clean transport projects and 54 percent to sustainable water management, desalination and sanitation projects, in a way that creates new job opportunities and reduces carbon emissions, and contributes to completing Egypt’s plan towards achieving sustainable development in the areas of clean transport, renewable energy, pollution reduction and climate change adaptation. In addition to raising energy efficiency and sustainable management of water and wastewater.
The minister said that the monorail project comes at the forefront of these investments, as it links Greater Cairo with the new urban areas and cities “New Cairo and the Administrative Capital” and the “Sixth of October City”, and serves 600,000 people daily, helping to facilitate their transportation.
The minister added that we obtained the first green financing in November 2021 in the amount of $1.5 billion from a group of international and regional commercial banks, with a subscription that achieved high levels of demand, with a coverage rate of more than 2.5 times. green national, including, but not limited to, water treatment and desalination plants, solid and medical waste management and treatment, and other green projects.
The minister indicated that the volume of energy from renewable sources is 6,128 megawatts, representing 20 percent of the maximum electrical loads, and about 3,500 megawatts have been generated through the private sector; this reflects the government’s success in ensuring uninterrupted electricity provision to support economic growth.
He pointed out that the government attaches great importance to water projects, whether sewage treatment or water desalination, and "drip irrigation" is one of the initiatives that complement sustainable projects. The first phase begins in Beni Suef and Qalyubia with about LE 7 billion by providing loans with the guarantee of the Ministry of Finance without interest for farmers.
The minister stressed that LE 7.1 billion has been allocated to the presidential initiative to replace aging vehicles with new ones that run on natural gas, as a model for projects that pave the way for Egypt's gradual move towards switching to low-emissions means of transportation.
He explained that currently imported electric cars are not subject to customs, and the state's strategy to encourage local car manufacturing includes material incentives for citizens to encourage them to buy locally manufactured cars.