Egypt’s banking sector is taking significant strides toward sustainable finance, with the Central Bank of Egypt (CBE) leading efforts to integrate environmental, social, and governance (ESG) considerations into financial services. This proactive approach aligns with Egypt’s Sustainable Development Goals (SDGs) and Vision 2030, reinforcing the sector’s role in driving long-term economic resilience and inclusivity.
Under CBE’s guidance, Egyptian banks have broadened their financial services to support sustainability-driven projects. These include investments in renewable energy, waste recycling, and micro, small, and medium-sized enterprises (MSMEs). A key focus has also been on expanding financial inclusion by tailoring banking products for low- and middle-income individuals and Persons with Disabilities (PWDs), ensuring accessibility and equitable economic participation.
To align with global sustainability frameworks, Egyptian banks have introduced over 24 specialized financing programs across key sectors such as renewable energy, energy efficiency, healthcare, agriculture, and digital transformation. These initiatives aim to create job opportunities, enhance business environments, and foster entrepreneurship, ultimately contributing to a more diversified and resilient economy.
Across the sector, 31 banks have launched financial solutions that strengthen social equity and economic stability. Targeted financing schemes support vulnerable communities, empower smallholder farmers, and advance gender equality through specialized products for women entrepreneurs. Additionally, banks have introduced education financing programs, reinforcing efforts to enhance access to quality education.
As part of Egypt’s commitment to environmental sustainability and climate action, banks have rolled out green financing initiatives, including green bonds and specialized credit lines for clean energy projects. These efforts align with global climate goals and reinforce the financial sector’s role in mitigating environmental risks.
Further demonstrating its commitment, Egypt’s banking industry has embraced the Principles for Responsible Banking, set forth by the United Nations Environment Programme Finance Initiative (UNEP FI). With 75% of the sector’s total portfolio now aligned with these principles, banks are actively incorporating ESG factors into their operations while fostering responsible customer engagement to stimulate sustainable economic growth.
Acknowledging these advancements, the Sustainable Banking and Finance Network (SBFN)—a global platform under the International Finance Corporation (IFC) and the World Bank Group—upgraded Egypt’s rating in 2024 from “Developing” to “Advancing.” This marks the fourth consecutive improvement since Egypt joined SBFN, reflecting the country’s progress in establishing robust sustainable finance frameworks.
By aligning with international sustainability standards and best practices, Egypt’s banking sector is not only enhancing financial stability but also accelerating the transition toward a more inclusive, green, and sustainable economy. As these efforts continue, the sector remains a key driver in shaping a resilient financial ecosystem that supports both present and future generations.
