
Egypt has secured on January 20 a $231 million concessional loan from the Japan International Cooperation Agency (JICA) to support the development of its private sector. This funding will contribute to economic diversification and assist in the transition towards a green economy, providing budget support for necessary policy reforms. The loan aims to enhance Egypt’s economic competitiveness and promote sustainable growth by facilitating the shift to a greener economy.
The loan, which has an annual interest rate of 2%, will be repaid over a 30-year period with a 10-year grace period. Almost $100 million of the total financing will be channelled through a facility set up in collaboration with the African Development Bank (AfDB) and the Korea-Africa Energy Investment Framework, further supporting Egypt’s green energy goals.
Rania Al-Mashat, Egypt’s Minister of Planning, Economic Development, and International Cooperation, stated that the loan would foster macroeconomic stability and help diversify the country’s production base. The focus will be on vital sectors, including industry, agriculture, and telecommunications, ensuring Egypt’s economic growth is sustainable and resilient, according to Egypt Today.