One billion euros .. Egypt is the most in possession of European investments for reconstruction in the Mediterranean region
The European Bank for Reconstruction and Development has invested a record 2.2 billion euros in 48 projects in the southern and eastern Mediterranean region, in response to the economic impact of the Coronavirus pandemic on the region in 2020.
Cumulative investments in this region, which include Egypt, Jordan, Lebanon, Morocco, Tunisia, the West Bank and the Gaza Strip, amounted to 1.8 billion euros in 2019.
To ensure that trade operations run smoothly in the region during the pandemic, the EBRD's Trade Facilitation Program has played a major role in keeping trade channels open despite the disruptions caused by COVID-19, including factory closures, supply chain disruptions, and restrictions imposed. On travel, commodity prices deteriorate, lower consumer and business confidence.
The huge increase in demand for trade facilitation program products led the bank to support 350 trade finance deals with a record value of 1.3 billion euros in the southern and eastern Mediterranean region, including the West Bank and Gaza Strip. These deals included importing medicines from Switzerland and Spain to Jordan and Lebanon, importing grains and vegetable oils to Morocco and Egypt, importing wood products from Romania to Tunisia, and importing building materials to the West Bank and Gaza Strip.
In support of the Egyptian economy during the pandemic, the European Bank for Reconstruction and Development increased its financing in the country by providing more than one billion euros across various sectors, of which 784 million euros were in the form of liquidity lines for local banks to provide loans to small and medium-sized companies.
To boost one of the most vital sectors in the Egyptian economy, the bank provided a $ 12 million loan to develop a new hotel in West Cairo. This investment is expected to create more than 300 jobs and enhance the inclusion of women.
The bank also continued to promote renewable energy projects in Egypt by supporting one of the first green projects between the public and private sectors in the country with an initial loan of $ 4.2 million for the "TAQA PV" solar energy production company affiliated with the "Taqa Arabia" renewable energy group.
In Jordan, the bank provided 73 million euros, including a loan of up to 30 million dollars to Cairo-Amman Bank to re-lend to private companies in the country, thus enhancing the resilience of the Jordanian economy.
To improve public transportation in the Jordanian capital, Amman, the Bank, within the framework of the Green City initiative, provided a financial package of 14.8 million euros to the Greater Amman Municipality to purchase a new bus fleet of 15 zero-emission electric buses, the first of its kind in Jordan, and 136 diesel-powered Euro V buses.
To contribute to the revitalization of the tourism sector in Jordan, the Bank supported the Jordanian Ministry of Tourism to develop standard operating procedures for enterprises in the tourism sector and to train more than 8,000 employees on health and safety related procedures to resume operations in light of the Covid-19 pandemic.
In Lebanon, the Bank continued to support the import of basic commodities through its Trade Facilitation Program, and under the Small Business Advice Program funded by the European Union, it provided more than 100 small business advisory projects.
In Morocco, BMCE-owned Bank of Africa became the first recipient under the "Covid-19 Resilience Framework" program, through a financing facility of 145 million euros obtained in April.
To boost critical infrastructure services in Morocco, the bank provided a financing package of 300 million euros in state-owned public utility and transportation companies, namely the National Office of Electricity and Potable Water (ONEE), Motorways of Morocco (ADM) and the National Office of Airports (ONDA). This investment will strengthen the resilience of these companies and improve the services provided to the Moroccan people.
The bank invested a total of 242 million euros in Tunisia during 2020, including a loan of 11 million euros to the Landor cheese-making company to finance its expansion in Tunisia as well as expanding its regional reach by opening a new factory in Morocco. In addition, the European Bank for Reconstruction and Development has provided 200 advisory projects to support Tunisian SMEs, funded by the European Union, with a focus on the sectors most affected by the "Covid-19" crisis, such as tourism and hospitality.
In addition, the European Bank for Reconstruction and Development supported the economy in the West Bank and Gaza Strip with a focus on promoting small businesses by expanding credit lines and commercial facilities provided to local banks. Under a $ 15 million financing package for the Bank of Palestine, the European Bank for Reconstruction and Development became the first financial institution to allocate a line of credit in the West Bank and Gaza Strip under the Women in Business Program, with the aim of encouraging women entrepreneurs.
Small businesses in the Southern and Eastern Mediterranean region also received 630 consulting projects under the European Bank for Reconstruction and Development Small Business Consulting Program supported by the European Union.
The region continued to benefit from strong donor support across various sectors, including the small business sector, energy efficiency and inclusion. Donors include the European Union, the European Bank for Reconstruction and Development's Southern and Eastern Mediterranean Multi-Donor Account, the Green Climate Fund, the Global Concessional Financing Facility, the Transformation Fund to Support the Middle East and North Africa, and other bilateral and multilateral donors.
In all, in 2020 the European Bank for Reconstruction and Development implemented a record € 11 billion investment in 411 projects in 38 economies across three continents. This represents a 10% increase in annual business investment
In the year 2019, in which the bank provided 10.1 billion euros to finance 452 projects.
It is noteworthy that the donors to the EBRD Southern and Eastern Mediterranean Countries Multiple Account are: Australia, Finland, France, Germany, Italy, the Netherlands, Norway, Sweden, China Taipei and the United Kingdom.
