الهيئة العامة للرقابة المالية

• French Ambassador Eric Chevalier emphasizes France’s ongoing commitment to support Egypt in reaching the Sustainable Development Goals (SDGs) through collaboration with FRA

• The French Development Agency (AFD) joining forces with FRA is a significant move towards achieving FRA’s goal of fostering sustainable finance within Egypt’s non-bank financial institutions.

• FRA Chairman and French Ambassador to Cairo co-hosted a signing ceremony, marking a new chapter in their combined efforts to reach the UN’s Sustainable Development Goals (SDGs)

• The French Development Agency (AFD) renews its commitment to the strategic partnership with FRA. This collaboration will provide technical support, funded by the European Union (EU), to design and implement sustainable and climate finance policies

• FRA’s Chairman emphasizes the significance of the partnership with AFD. This strategic collaboration, backed by EU funding, will accelerate efforts to promote sustainable finance within Egypt’s non-bank financial sector.

FRA, specifically its arm focused on sustainability in the non-banking sector (RCFSF), signed a Memorandum of Understanding (MoU) with the French Development Agency (AFD). This partnership aims to promote the UN’s Sustainable Development Goals (SDGs) in Egypt and support the development of a sustainable finance within the non-banking financial sector.

This partnership between FRA and AFD complements AFD’s “Finance In Common” project, allowing FRA to leverage AFD’s expertise in designing and implementing a robust climate finance framework.

The signing ceremony between FRA and AFD took place at the French Embassy in Cairo. Dr.  Mohamed Farid Saleh, FRA Chairman and Eric Chevalier, the French Ambassador to Cairo witnessed the ceremony. Ahmed Roshdy, Executive Director of FRA’s Regional Centre for Sustainable Finance (RCFSF) and Clemence Vidal, Director of AFD’s Cairo office, officially signed the Memorandum of Understanding (MoU).

The signing ceremony was well-attended by prominent figures, including Dr. Islam Azzam , FRA Vice Chairman, Dr. Mohamed Abdelaziz Assistant to FRA Chairman, Dr. Tarek Seif Financial Services Institute Executive Director, Mohamed Ayad , FRA Media Centre Director and representatives from both FRA and the French Embassy.

FRA Chairman emphasizes that FRA aims to provide all possible support for promoting sustainable finance within the non-banking sector. This focus stems from the Authority’s belief that a robust non-banking sustainable finance sector is a crucial element for achieving broader sustainable development goals across the entire Egyptian economy.

In his speech, FRA Chairman emphasizes that creating a supportive local environment and building strong partnerships are key axes to facilitate access to financing that serves sustainable development goals for a better life that satisfies and suits everyone.

FRA Chairman further highlights the non-banking financial sector’s vital role. He explains that this sector can be a powerful partner in supporting the government’s innovative efforts to finance the SDGs. To achieve this, the focus is on establishing a favorable business environment that allows non-banking financial companies to thrive and meet their operational goals.

French Ambassador to Cairo, Eric Chevalier, reaffirms France’s ongoing support for Egypt’s pursuit of the SDGs. He emphasizes this commitment through the signing of the MoU between AFD and FRA. This MoU is part of a co-financing project backed by the European Union. He adds that the signing of this agreement marks a significant milestone for the program. This program’s goal is to empower  FRA to unlock more sustainable financing options through Egypt’s non-banking financial institutions.

Before the official signing ceremony, representatives from both sides held a productive closed-door meeting. Discussions centered on collaborative efforts to achieve the SDGs in Egypt through the non-banking financial sector. The MoU outlines a key initiative: the establishment of a joint expert team. This team will be created under the co-financing project’s technical assistance program. Their primary focus will be on supporting the development of sustainable finance within Egypt’s non-banking financial sector.

The partnership between the two parties offers a comprehensive support package, including providing technical expertise and organizing series of programs designed to enhance FRA’s capabilities in areas related to climate action and sustainable development. These programs will be aligned with international best practices and complement the Egyptian government’s plans. In addition, the program will prepare pre-feasibility studies for potential SDG investments alongside beneficiaries, assess projects against defined criteria for SDG investment and monitor the implementation process with partner banks involved in SDG investments.

The program will include activities to safeguard the integrity of SDG investments, this include verifying the eligibility of allocated funds, monitoring the investment grant scheme through field visits. In addition to providing technical support to the final beneficiaries, issuing certificates of approval for qualified projects. Also, the program will foster dialogue and knowledge sharing on identifying and analyzing climate-related financial risks within Egypt’s non-banking financial sector. In addition to engaging stakeholders in discussions on integrating environmental and social considerations into supervisory and regulatory frameworks and supporting capacity building within Egyptian financial institutions to enhance their understanding of sustainable finance. That is besides facilitating information sharing among these institutions to develop understanding of sustainable finance and organizing awareness campaigns and workshops, supporting institutional relations, and promoting financing for sustainable development goals in Egypt.

The Regional Centre for Sustainable Finance (RCSF) recently held productive meetings with a team from the French Development Agency (AFD). These discussions focused on developing a detailed work plan for raising awareness and building capacity within Egypt’s non-banking financial sector (NBFIs) on sustainable finance.

The outcome of these meetings resulted in a four-pronged approach for the AFD’s assistance program.

First:  Modifying NBFIs disclosures to comply with IFRS1 and IFRS2

Second: Equipping NBFIs with the knowledge to identify and manage ESG-related risks

Third: Preparing a diagnostic report to assess the current state of sustainable finance practices within NBFI.

Fourth: Reviewing and offering technical advice on legislation related to green bonds, social bonds, and sustainability-linked bonds.

This collaborative effort has a strong foundation. Back in December 2021, the French Development Agency’s (AFD) Board of Directors approved a co-financing project specifically designed to support Egypt’s non-banking financial sector in the realm of sustainable finance. This project underscores AFD’s long-term commitment to empowering Egypt’s non-bank financial institutions to play a vital role in achieving the UN’s Sustainable Development Goals (SDGs) by 2030.

The project is a multi-faceted initiative backed by the European Union’s funding support. A key component is the Technical Assistance Facility (TA) managed by AFD. This facility will provide the following services: offering advisory services to Egyptian partners, including FRA, capacity building and knowledge-sharing initiatives within Egyptian financial institutions, organizing awareness campaigns, workshops, supporting institutional relations and encouraging investments that align with SDGs in Egypt.