Egypt’s banking sector has made remarkable progress by achieving 12 of the United Nations’ 17 Sustainable Development Goals (SDGs), demonstrating its commitment to sustainable finance under the leadership of the Central Bank of Egypt (CBE). This accomplishment marks a pivotal moment for the nation as it aligns its economic strategies with global sustainability standards.
The sector’s initiatives have included financial inclusion for vulnerable groups, specialized financing for farmers, and educational programs tailored to students’ needs. Egyptian banks have also pioneered customized products for women, supporting gender equality by providing financial and non-financial services to women entrepreneurs. According to the World Economic Forum, Egypt has seen a 15% increase in women-led businesses over the past five years, highlighting the impact of these efforts.
In a bid to promote clean energy and climate action, Egypt’s banks have launched green financing programs and bonds. This aligns with the principles established by the United Nations Environment Program Finance Initiative (UNEP FI), which aims to integrate sustainable practices into banking operations. With a compliance rate of 75% across the banking portfolio, Egypt is setting a benchmark for responsible banking.
The Sustainable Banking and Finance Network (SBFN) recently upgraded Egypt’s sustainable finance rating from “Developing” to “Advancing” in its 2024 report. This upgrade underscores Egypt’s progress in developing sustainable finance frameworks in accordance with international best practices. Since joining the SBFN, Egypt’s rating has improved four times, a testament to the country’s commitment to embedding sustainability into its financial system.
The CBE has been at the forefront of enhancing sustainable finance within the banking sector, aligning with Egypt’s Vision 2030 and the UN’s SDGs. Egyptian banks are expanding their financial services to incorporate environmental and social considerations, reflecting a strategic commitment to sustainable development. Market analysts from the International Monetary Fund (IMF) predict that by 2030, sustainable finance will account for 20% of global banking assets, emphasizing the significance of Egypt’s efforts.
The CBE encourages banks to finance sustainable economic activities, including renewable energy projects and waste recycling initiatives. The focus also extends to supporting micro, small, and medium-sized enterprises (MSMEs) and creating innovative financial products for low to middle-income citizens and persons with disabilities (PWDs). Egyptian banks have developed over 24 new products targeting sectors such as energy efficiency, agriculture, healthcare, and digital transformation.
Currently, 31 banks have introduced initiatives aimed at developing a competitive and diversified economy, promoting sustainable growth, and enhancing employment opportunities. This holistic approach not only addresses immediate economic needs but also lays the foundation for a resilient economy that can adapt to future challenges.
