The World Bank’s International Financial Corporation (IFC) is partnering with the National Bank of Egypt and the Micro, Small and Medium Enterprise Development Agency (MSMEDA) to strengthen the clean technology entrepreneurship sector.
The three parties want to boost Egyptian farmers’ access to finance for solar irrigation.
IFC will help four financial institutions including the National Bank of Egypt and MSMEDA develop financial services to enable easy access to funding for solar irrigation projects for farmers in Egypt.
The project is being implemented in partnership with the governments of Denmark, Korea and Netherlands.
The partnership is expected to help start-ups in the country to commercialise their clean energy technologies. Start-ups make up the bulk of players in the photovoltaic (PV) solar water pumping market in Egypt but are currently unable to scale up because of a lack of payment and finance options for customers, and a limited understanding of the sector.
Around 960,000 diesel-powered water pumps are currently used for irrigation across Egypt, at a cost of about $250 million annually for the diesel. Replacing the pumps with PV systems would save farmers money in fuel and maintenance and help create a cleaner environment.
Nevine Gamea, minister of trade and industry in Egpyt, said: “Through our partnership with IFC, MSMEDA will deepen its understanding of solar irrigation systems and develop a financial product for farmers to purchase solar irrigation pumps. Not only can farmers use a clean and free source of energy, but they can also irrigate more land and increase their production. This initiative is in full alignment with MSMEDA strategy in exploring new feasible financial products that are environmentally friendly and using clean technology.”