By Nibal Zgheib
The European Bank for Reconstruction and Development (EBRD) posted record investment of more than €2.4 billion(US$2.5 bilion) in the southern and eastern Mediterranean (SEMED) in 2024 – up from €2 billion in 2023 – in extremely challenging times.
Across the six economies of the SEMED region (Egypt, Jordan, Lebanon, Morocco, Tunisia, and the West Bank and Gaza), a total of 49 per cent of that investment was in the green economy, with 55 per cent in the financial sector, 25 per cent in the corporate sector and 21 per cent in sustainable infrastructure.
Nearly 60 per cent of all investment in the region included targeted actions aimed at strengthening gender equality, with figures of 75 per cent in Jordan, 58 per cent in Egypt, 56 per cent in Tunisia and 50 per cent in Morocco. In addition, 33 per cent of all projects across the region had an explicit focus on addressing inequalities and developing human capital.
The Bank also mobilised €514 million of funding from other investors.
Egypt led the way, accounting for 26 of the EBRD’s 50 new projects in the region. Investment in Egypt totalled more than €1.4 billion, with 84 per cent of it going to the private sector.
The Bank invested US$ 100 million (€97 million) in Egypt’s first sustainability bond – an issuance of US$ 500 million (€485 million) by Arab African International Bank (AAIB) – which opened the door to more bonds of that kind and established a benchmark for others to follow. 75 per cent of the bond’s proceeds were allocated to green financing (such as industrial energy efficiency initiatives, small-scale renewable energy projects, and green buildings) and the remaining 25 per cent were allocated to social assets, including inclusive finance and micro, small and medium-sized enterprises (MSMEs).
In Jordan, the Bank invested €169 million in four projects, with 72 per cent of that financing going to the private sector (including the tourism sector) and 72 per cent being invested in sustainable infrastructure.
The Bank provided US$ 46.7 million (€45.3 million) to the Water Authority of Jordan, improving wastewater services for around 200,000 residents of West Irbid through the construction of a new wastewater treatment plant, network and pumping infrastructure and the completion of a wastewater network.
The new wastewater plant and network will mitigate numerous environmental and health risks associated with inadequate sewage infrastructure. It will also help to reduce greenhouse gas emissions by replacing current disposal practices such as cesspits.
In Lebanon, the Bank continued to support imports and exports of critical commodities through the Trade Facilitation Programme, with total turnover of more than €20 million in 2024. Under the Advice for Small Businesses programme, the Bank also supported 91 advisory projects for small businesses and start-ups in the country in 2024, bringing the total to 425 projects to date. In addition, the Bank and the EU continued to strengthen their collaboration, launching an innovative new programme assisting Lebanese SMEs with the green transition.
Also in 2024, the Bank launched the third edition of the Star Venture programme, supporting 8 new start-ups, bringing the total number of start-ups that have benefited from the programme to 21.
In Morocco, the EBRD invested €530 million in 12 projects, with 59 per cent going to the green economy – a record in terms of both volume and share of investment.
The Bank supported its first climate adaptation project in Morocco’s industrial sector, providing a €200 million loan to OCP Group, the world’s leading producer of phosphate-based fertilisers. This landmark project, which is aimed at developing two new desalination plants, is strengthening water security in Morocco and supporting OCP Group’s goal of eliminating the use of fresh water in industrial production by 2030.
In Tunisia, the EBRD invested €247 million in 11 projects, which were all in the private sector.
The Bank supported Tunisia’s renewable energy sector by providing funding to Scatec to finance the construction and operation of 120 MW solar plants in Sidi Bouzid and Tozeur, with that funding consisting of a €12.5 million EBRD loan, an €8.2 million concessional tranche provided by the Clean Technology Fund and €4.6 million provided by the Global Environment Facility.
The EBRD also extended a €7.8 million loan to Qair, with a concessional tranche of €2 million provided by the High Impact Partnership on Climate Action, to support renewable energy projects with a combined capacity of 20 MW – the first initiatives to be authorised under Tunisia’s regulatory framework for renewable energy projects.
In addition, the Bank delivered strong support to Tunisian SMEs through its Trade Facilitation Programme, with a record-breaking 368 transactions in 2024 for a total volume of €344 million.
The EBRD also continued to support the economy of the West Bank and Gaza, providing €67 million of loans and investment, with a focus on developing small businesses in the West Bank through credit lines and trade facilities intermediated by local banks. The Bank made its first equity investment there in 2024, investing in Bank of Palestine, as well as investing in the venture capital fund Ibtikar. Over the period from 2017 to 2024, the Bank financed 30 transactions worth €157.4 million, while 150 small businesses received advisory support.
The SEMED region also continued to benefit from strong donor support, including support from the EU, the EBRD SEMED Multi-Donor Account,* the Green Climate Fund, the Global Concessional Financing Facility and other bilateral and multilateral donors.
Under the EBRD’s Advice for Small Businesses programme, 437 enterprises in the SEMED region received advisory services and training last year, with half of that support being funded by the EU.
