The IMF's support is designed to accelerate decarbonization, strengthen environmental risk management, and assess the impacts of investment plans on Egypt’s climate resilience.
Egypt has secured $1.3 billion in funding from the International Monetary Fund (IMF) under the Resilience and Sustainability Facility (RSF) to support its climate-related projects.
In a joint statement, the Ministries of Finance and Environment stated that the funding will be part of a broader package of structural reforms aimed at advancing Egypt’s 2050 Climate Change Strategy and fulfilling its 2030 Nationally Determined Contributions (NDCs).
The IMF's support is designed to accelerate decarbonization, strengthen environmental risk management, and assess the impacts of investment plans on Egypt’s climate resilience.
The Ministry of Finance, the Ministry of Environment, and the Central Bank have worked closely together, ensuring Egypt's ability to secure the funds under the RSF, according to the statement.
The funds, expected to arrive in state coffers within days, will be directed toward critical environmental initiatives such as expanding renewable energy, reducing emissions, managing water resources, and combating desertification.
The announcement follows the completion of Egypt’s fourth review under its $8 billion economic program with the IMF.
IMF Executive Director and former Finance Minister Mohamed Maait confirmed to EnterpriseAM that the funds will be directed toward projects that align with Egypt’s climate goals.
The RSF arrangement will support key reforms to accelerate decarbonization, strengthen the management of environmental risks, and assess the effects of investment plans on achieving resilience, he said.
While the exact sizes of the tranches, as well as the disbursement and repayment mechanisms, remain unknown, Maait explained that these details will be determined in coordination with the Egyptian government at a later stage.
This funding is part of a larger effort by Egypt to implement its climate strategy, which has been developed in collaboration with multiple ministries and government entities.
The IMF's approval of this financing is a crucial step in supporting Egypt's transition to a green economy, which is central to the country’s long-term development and its commitments under the Paris Agreement to address climate change.
Egypt is also preparing for the upcoming COP30 climate conference, where it is expected to play a leading role in global climate discussions and further advocate for the fulfillment of international climate goals.
