Through the partnership, the IFC – a member of the World Bank Group – will help the Agricultural Bank of Egypt (ABE) design new financial products to help farmers – most of whom lack direct access to grid electricity – to buy and install solar irrigation pumps.
It will help reduce their reliance on diesel-powered generations – which will cut greenhouse gas emissions – and boost their productivity.
Using solar power for pumping water is estimated to potentially help farmers save $875 million (£657m) annually in diesel fuel costs.
Sami Abdel Sadek, Deputy Chairman of ABE, which serves four million farmers in Egypt said: “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.”
Walid Labadi, IFC Country Manager for Egypt, Libya and Yemen added: “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.”
Read More: New partnership to help Egyptian farmers buy solar irrigation systems