EBRD Invests Record €2.8 Billion In 65 Projects Across SEMED In 2025, 70% Directed To Private Sector

In 2025, the European Bank for Reconstruction and Development (EBRD) invested a record €2.8 billion across 65 projects in six economies in the southern and eastern Mediterranean (SEMED) region, including Egypt, Iraq, Jordan, Lebanon, Morocco, Tunisia, and the West Bank and Gaza. This investment demonstrates the Bank’s strong support for its partner economies during challenging times.

Seventy per cent of these investments were directed to the private sector, reflecting the EBRD’s focus on fostering private enterprise. The total investment for 2025 represents a significant increase from the €2.4 billion invested in these economies in 2024, making SEMED the third-largest regional recipient of EBRD funding. In addition, the Bank mobilized €747 million in private investment in the region, up from €514 million the previous year.

In Egypt, one of the Bank’s largest economies of operation, EBRD invested €1.3 billion across 26 projects. Approximately 70 per cent of this funding supported the private sector, 60 per cent took the form of green finance, and nearly half of the investments included gender equality components. To meet rising electricity demand and integrate additional renewable energy capacity, the Bank provided €200 million to the Egyptian Electricity Transmission Company under the country’s NWFE initiative, marking its first investment in Egypt’s electricity grid.

In support of Egypt’s digital transformation, EBRD and Banque Misr extended a €68 million syndicated loan to Orange Egypt to facilitate its 5G licence, expected to provide widespread benefits to consumers and businesses. The Bank also continued to support small and medium-sized enterprises (SMEs), women- and youth-led businesses, and corporate clients across manufacturing, services, agribusiness, and pharmaceuticals.

In Jordan, the EBRD invested €201 million across ten projects. A large share of this investment, 86 per cent, was directed to the private sector, while 44 per cent was allocated to green finance projects. Around 80 per cent of the investment aimed to promote the participation of women and young people in the workforce.

To strengthen Capital Bank’s tier II capital and expand lending to micro-enterprises and SMEs, the Bank, together with a consortium of international lenders, mobilized a Basel III-compliant subordinated loan of up to US$155 million, of which EBRD contributed US$35 million. Additionally, a sovereign-guaranteed loan of €24.1 million, combined with an EU investment grant, financed electrical transmission infrastructure to improve the national grid.

Following Iraq’s approval as a country of operation in 2025, EBRD made its first investment in the country by providing a US$100 million (approximately €85 million) trade finance facility to the National Bank of Iraq, the country’s largest private bank, to support import and export activities.In Lebanon, the Bank continued to support imports of essential commodities with €22 million in trade finance under its Trade Facilitation Programme.

Through the Advice for Small Businesses (ASB) programme, the EBRD delivered over 132 new advisory projects in Lebanon in 2023, with a focus on the green economy and the inclusion of women and young people, bringing the total number of ASB projects in the country to 554. The Bank also launched a €10 million European Union-funded programme to promote resource efficiency and circular economy practices in small enterprises, as well as a €4 million EBRD-funded programme to support the reconstruction of SMEs affected by the war.

In Morocco, investment reached a record €895 million, up from €530 million in 2024. Thirty-three per cent of this funding went to the private sector, while more than 80 per cent was allocated to green finance. A €300 million loan to ONEE, the national utility, strengthened the company’s financial resilience and represented the region’s first sustainability-linked loan in the energy sector.

To support sustainable water management and preserve the Saïss aquifer, the Bank provided €150 million for the third and final phase of the Saïss Water Conservation Programme, which helps irrigate 20,000 hectares of land and benefits 1.8 million people. A €50 million loan to Crédit du Maroc was also provided to finance private-sector green investments under Morocco’s Decarbonisation and Climate Resilience Programme.

In Tunisia, the EBRD invested €398 million across 12 projects. This included the first €50 million tranche of a development-linked loan of up to €190 million to Tunisie Telecom, which will support upgrading its mobile network from 4G to 5G, expanding fibre connections to 200,000 households, and pioneering new cybersecurity standards. With EU support, the Bank also made its first investment in Tunisia under the Youth in Business programme, providing a TND 15 million loan to Enda to support micro-enterprises and SMEs led by entrepreneurs under the age of 35.

Furthermore, a new EU-supported Green Economy Financing Facility is offering €59 million in loans to local financial institutions for energy efficiency, renewable energy, climate adaptation, and circular economy projects, with additional foreign exchange hedging provided by TCX.

In the West Bank and Gaza, EBRD provided €28 million through six transactions in 2025, bringing total cumulative financing in the economy since 2017 to €185.5 million. The Bank’s ASB and Star Venture programmes continued to expand support for small businesses, delivering over 175 advisory projects, onboarding 19 startups to Star Venture, and training more than 600 SMEs.

Across the SEMED region, the EBRD focused on supporting the green transition, improving professional skills, enhancing the governance of state-owned enterprises, and promoting market competitiveness. Strong donor support continued from the European Union, the SEMED Multi-Donor Account, the Green Climate Fund, the Global Concessional Financing Facility, and other bilateral and multilateral donors.