By Abbas Nazil
Egypt and the World Bank have discussed establishing a financial guarantee fund aimed at attracting more investment into renewable energy and infrastructure projects as part of efforts to strengthen the country’s electricity sector and support its clean energy transition.
The discussions were held between Egypt’s Minister of Electricity and Renewable Energy, Mahmoud Esmat, and a World Bank delegation led by Neeraj Verma, Practice Manager for Infrastructure Finance and Investment, during a meeting at the ministry’s headquarters in the New Administrative Capital.
The meeting focused on expanding cooperation in financial sustainability, modernising electricity infrastructure, improving access to innovative financing mechanisms and creating new opportunities for private-sector participation in renewable energy development.
Minister of Planning and Economic Development Ahmed Rostom also joined the discussions virtually, alongside senior officials from the Egyptian Electricity Holding Company, the Egyptian Electricity Transmission Company and the Ministry of Electricity.
A major focus of the meeting was a proposal to establish a dedicated financial guarantee fund that would help reduce investment risks by providing payment guarantees, debt-service assurances and contract termination protections for electricity and renewable energy projects.
Officials said the proposed mechanism would address some of the major challenges facing long-term infrastructure financing, including high funding costs, guarantee requirements and financial obligations that often limit private-sector participation in large-scale energy projects.
The fund is expected to encourage greater investment by improving confidence among investors and financial institutions while expanding access to financing for critical infrastructure developments.
Discussions also covered Egypt’s efforts to transform its traditional electricity network into a smart grid through digital transformation, workforce development, capacity building and institutional reforms within the power sector.
The two sides reviewed Egypt’s electricity interconnection projects, which are designed to strengthen the country’s position as a regional energy hub connecting Africa, Asia and Europe.
The projects align with Egypt’s National Energy Strategy, which aims to increase the contribution of renewable energy to the country’s electricity mix to 45 per cent within the next two years.
Esmat highlighted the importance of the long-standing partnership between Egypt and the World Bank, describing the institution as a key development partner that has supported electricity generation projects and helped improve the national power grid.
He said Egypt remains committed to accelerating renewable energy deployment, encouraging technology transfer, promoting local manufacturing and expanding private-sector involvement through strategic partnerships with investors and international institutions.
The minister added that cooperation with global financial organisations would remain essential in achieving Egypt’s sustainable development goals, improving electricity services and strengthening energy security.
Rostom said the proposed financing and guarantee mechanism could become a model for mobilising innovative infrastructure finance, increasing access to local-currency funding and strengthening public-private partnerships.
He added that the initiative supports Egypt’s broader economic strategy of increasing private-sector participation and attracting more domestic and international investment into key development sectors.
The World Bank collaboration forms part of Egypt’s wider efforts to expand renewable energy capacity, improve infrastructure resilience and position the country as a major player in the regional clean energy market.
