A loan of EGP 187.4 million (equivalent of about €10 million) from the EBRD is being complemented by an investment grant of €3 million from the UK’s Foreign, Commonwealth and Development Office (FCDO) through the High-Impact Partnership on Climate Action (HIPCA; also supported by Austria, Finland, the Netherlands, Switzerland and the TaiwanICDF). The European Union’s EFSD (European Fund for Sustainable Development), the financing arm of the EU External Investment Plan promoting investment in Africa and the EU Neighbourhood, is providing a first-loss guarantee for the EBRD loan.
AGM’s new fleet will support the company’s expansion along a greener pathway and promote an environmentally friendlier mode of transport in Egypt as the new vehicles will be able to convert liquid fuel into electric energy during their journeys, thereby reducing emissions of CO2 and air pollutants.
Electric mobility is expected to grow significantly in Egypt over the next few years, opening up new economic and employment opportunities across the country. AGM’s investment activities will be accompanied by training to improve skills in the maintenance and repair of the vehicles, further encouraging the development of the e-mobility sector.
“New and electric transport solutions are key to building a greener economy and improving air quality in cities,” explained Nandita Parshad, EBRD Managing Director, Sustainable Infrastructure Group. “I am pleased that our investment – backed by our partners and donors from the EU and FCDO – will showcase the benefits of e-mobility and provide a more efficient, safer and inclusive option for transport. It is also in line with the objective of Egypt's Presidency of COP27 to move from pledges to implementation.”
Mohamed Abou Ghaly, Board Member of AGM, said: “As a leading mobility solutions provider in Egypt, we are delighted to continue our long-term partnership with the EBRD, strengthening our growth plans and accelerating the development of the green mobility sector in Egypt. With Egypt proudly hosting COP27 in November 2022, we are delighted to support our country’s efforts towards sustainable growth through this electric cabs deal, together with our partners LEVC (London Electric Vehicle Company) and the EBRD.”
Qudsi Rasheed, the UK Embassy’s Chargé d’Affaires, said: “E-mobility is a core part of Egypt’s green transition but also essential to delivering an ambitious COP27. The UK is committed to supporting both of these aims. I am delighted that the UK is contributing to this pioneering Egyptian e-vehicle fleet through our partnership with the EBRD and hope to see further exciting announcements in the future.”
Henrike Trautmann, EU Director for the Neighbourhood South at DG NEAR, said: “The EU continues to support the green agenda in Egypt. The guarantee support to the EBRD investment will significantly contribute to promoting sustainable mobility and reducing pollution in the country.”
Egypt is a founding member of the EBRD. Since the start of its operations there in 2012, the Bank has invested more than €9.8 billion in 152 projects in the country.