The International Finance Corporation (IFC) has partnered with the Agricultural Bank of Egypt (ABE) to help Egyptian farmers’ access financing to purchase solar irrigation systems, and reduce their reliance on diesel-powered generators.
Through the partnership, IFC will help ABE build capacity and design new financial products to enable Egyptian farmers—most of whom lack direct access to grid electricity—to purchase and install solar irrigation pumps.
According to the IFC, using solar power for water pumping could potentially save farmers an estimated 14 billion Egyptian pounds ($875 million) annually in diesel fuel costs, helping reduce greenhouse gas emissions.
ABE serves four million farmers in Egypt and is one of the country’s largest banks.
Sami Abdel Sadek, the Deputy Chairman of the Agricultural Bank of Egypt, commented: “Expanding the use of solar energy technology among farmers is part of our strategy to support agricultural and rural development in Egypt. It will also contribute to the country’s 2030 strategy to encourage agricultural investments and rationalise the use of resources, including energy, in the sector.”
Solar irrigation pumps reduces GHG emissions
Walid Labadi, the IFC country manager for Egypt, Libya and Yemen, said: “Our partnership with ABE will help provide clean energy to farmers at an affordable cost, while helping reduce greenhouse gas emissions. Supporting the development of renewable energy and expanding access to finance are priorities for IFC in Egypt.”
The partnership is part of IFC’s broader advisory work to strengthen Egypt’s clean technology sector and support entrepreneurship in the country.
Under the Cleantech Entrepreneurship and Market Development Project, IFC is helping select financial institutions build their capacity to offer financing facilities for off-grid photovoltaic (PV) systems in the agribusiness sector.
The project is being implemented in partnership with the governments of Denmark, South Korea, and the Netherlands.