The European Bank for Reconstruction and Development (EBRD) is partnering with Italy to strengthen the sustainability and resilience of Egypt’s agricultural sector, with a particular focus on small and medium-sized enterprises (SMEs). Italy’s contribution of €5 million to the EBRD Small Business Impact Fund will support the launch of the Bank’s first Sustainable Agriculture Pilot Programme in Egypt. Agriculture is a critical sector in Egypt, yet it faces increasing pressures from climate change, which amplify its vulnerabilities and underscore the urgent need for modernisation.
At the same time, digital technologies offer opportunities to reduce greenhouse gas emissions, improve soil and crop monitoring, and enhance production efficiency. Despite this potential, local banks often have limited incentives to finance sustainable investments, while SMEs face barriers such as high upfront costs, operational adjustments, and delayed payments, which discourage the adoption of environmentally friendly practices.
To address these challenges, the Sustainable Agriculture Pilot Programme will help Egyptian agribusinesses adopt innovative and sustainable technologies that improve efficiency, strengthen environmental practices, and promote solutions that preserve biodiversity while enhancing resilience to climate-related disruptions. The programme will channel financing to agribusinesses through local financial institutions, supporting their investments in sustainable technologies.
This financing will be complemented by a technical assistance package designed to guide implementation and ensure that projects meet mitigation, adaptation, and environmental eligibility criteria. The programme will also incentivize uptake among potential borrowers by offering financial rewards upon the successful completion and verification of projects that deliver measurable environmental benefits.
The initiative aligns with the EBRD’s country strategy in Egypt, which aims to enhance competitiveness and support the transition to a green economy by fostering the growth and resilience of SMEs. It also complements Italy’s Mattei Plan, a strategic platform focused on strengthening partnerships with priority countries in northern and sub-Saharan Africa. The plan emphasizes sustainable development, climate resilience, and investment in agricultural technology. By integrating these priorities, the EBRD contributes to shared objectives such as improving food security, creating employment opportunities, and bolstering economic resilience in Egypt.
The contribution agreement was signed today at the Italian Embassy in Cairo by Matteo Patrone, EBRD Vice President for Banking, and Agostino Palese, Ambassador of Italy to Egypt. Matteo Patrone emphasized the role of SMEs in Egypt’s economy, noting that they drive innovation, productivity, and job creation. He highlighted that Italy’s contribution enables the EBRD to support resilience and sustainable growth in the agricultural sector, provide better financing solutions and modern technologies to SMEs, and strengthen the capacity of local banks to serve agribusinesses, ultimately fostering a greener and more competitive sector.
Ambassador Agostino Palese remarked that the initiative, supported by Italy’s €5 million contribution, is an important step in promoting sustainable agriculture within the Egyptian private sector. He noted that the programme reflects the Mattei Plan’s approach of cooperative collaboration with African partners, grounded in sustainability and shared development goals. Egypt is a founding member of the EBRD. Since the Bank began operations in the country in 2012, it has invested more than €13.8 billion across 209 projects, supporting a wide range of sectors and contributing to the country’s economic development.
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