The European Bank for Reconstruction and Development (EBRD) and Italy are teaming up to help Egypt’s agricultural sector become more sustainable and resilient, with a focus on small and medium-sized businesses, the EBRD said. Italy is putting in €5 million to back the EBRD’s first Sustainable Agriculture Pilot Programme in the country.
Agriculture is crucial for Egypt, but climate change is piling on the pressure and making modernization urgent. Digital tools can cut greenhouse gas emissions, improve soil and crop monitoring, and make production more efficient. Yet local banks often lack incentives to finance sustainable investments, and small businesses are put off by high upfront costs, operational changes, and delayed payments.
The program will help Egyptian agribusinesses adopt innovative and sustainable technologies that boost efficiency, strengthen environmental practices, and preserve biodiversity while building resilience to climate shocks. The EBRD will channel financing to agribusinesses through local financial institutions. That financing comes with technical help to guide implementation and make sure projects meet mitigation, adaptation, and environmental criteria. The pilot will also offer financial incentives to borrowers who complete verified projects that deliver environmental benefits.
The program supports the bank’s strategy in Egypt, which aims to boost competitiveness and green the economy by helping small businesses grow and become more resilient. It also aligns with Italy’s Mattei Plan, a strategic platform aimed at strengthening partnerships with countries Italy prioritizes in northern and sub-Saharan Africa, focusing on sustainable development, climate resilience, and investment in agricultural technology. By weaving these priorities together, the EBRD contributes to shared goals of enhancing food security, increasing employment, and bolstering economic resilience in Egypt.
The agreement was signed today at the Italian Embassy in Cairo by Matteo Patrone, EBRD Vice President, Banking, and Agostino Palese, Italy’s Ambassador to Egypt. Patrone said small businesses play a crucial role in Egypt’s economy, driving innovation, productivity, and job creation. “Thanks to Italy’s generous contribution, we are able to deliver on our commitment to fostering resilience and sustainable growth across Egypt’s agricultural sector, bringing better financing solutions and modern technologies to SMEs,” he said. Ambassador Palese said the initiative is an important part of the work being done to support Egypt’s private sector with a focus on sustainable agriculture and is fully aligned with the Mattei Plan for Africa. Egypt is a founding member of the EBRD. Since operations started there in 2012, the bank has invested more than €13.8 billion in 209 projects.
