Egypt’s Minister of Finance Mohamed Maait has said that the country’s green economy projects are set to expand under presidential mandate.
The expansion on green projects will contribute to the country achieving comprehensive and sustainable development, whilst taking into account the environment.
It would help reduce pollution, improve air quality by reducing harmful carbon emissions, rationalise fuel consumption, and is consistent with efforts to maximise local components in the national industry, as well as raise growth rates.
The presidential mandate will also lead to new job creations, and strengthening the macroeconomic structure to increase expenditures on improving the standard of living, and upgrading the services provided to citizens.
Maait said that the government aims to improve Egypt’s competitiveness in the environmental performance index, and will target the implementation of 140 development projects in various sectors nationwide.
This will occur by increasing the percentage of green public investments from 15% in the current fiscal year to 30% in the new budget.
The minister added that the production of the first electric car in Egypt comes as part of the state’s keenness on transforming the country into a green economy. It opens new horizons for the private sector as an original partner in the success of development initiatives.
He pointed out that the Ministry of Finance is studying more than one proposed alternative for financial incentives to encourage citizens to buy environmentally friendly electric vehicles (EV), and switch to clean energy.
The study is taking place in cooperation with: the Ministry of Trade and Industry; the Ministry of Electricity and Renewable Energy; the Ministry of Business Enterprise Sector; and the Central Bank of Egypt (CBE).
The domestic EV production industry will contribute to the localisation of the electric vehicle industry and its local marketing, with Egypt becoming a gateway for exporting these cars to Africa.
Maait added that this large national project is an important model of partnership with the private sector, as it is set to boost economic growth.
The minister pointed out that there are private Egyptian companies that are participating with the government in establishing electric charging stations.
He said that Egypt is currently studying the issuance of sustainable development bonds, to establish itself as a leader in this field in the Middle East, Africa, and Asia.
Maait noted that there are plans to expand the issuance of green bonds to provide sustainable financing for environmentally friendly projects in the areas of: housing; clean transportation; renewable energy; reducing pollution; adapting to climate change; raising energy efficiency; and the sustainable management of water and sanitation.
He added that the first offering of green bonds, worth $750m, has allowed Egypt to play a leading role in green development, and become a leader in the clean and environmentally friendly investment community in the region.