Regulator FRA (Egypt) sharpens focus on sustainability with UK banking alliance

20 March, 2023
Sustainable finance

The London Institute of Banking & Finance (LIBF) and Egypt’s Financial Regulatory Authority (FRA), represented by the Regional Center of Sustainable Finance (RCSF) signed a Memorandum of Understanding (MoU) to promote Sustainable Finance via dedicated financial tools, standards and reporting.

Gareth Bayley OBE, British Ambassador to the Arab Republic of Egypt, was also present to witness the signing.

Egypt’s financial sector is strengthening and accelerating its commitment to sustainable development by signing an MoU with LIBF that will build greater awareness, create draft targeted policies and a more robust framework for Sustainable finance in Egypt.

The MoU will see both parties work together to fulfil three specific objectives:

  • improve the efficiency of and provide support for Egyptian non-banking financial services markets;
  • raise awareness of the culture of sustainable development, sustainable finance and financial sector investment in Egypt; and
  • enhance capacity building for sustainability and financial tools for the green economy and governance in Egypt.

Dr. Mohamed Farid Saleh, FRA Executive Manager commented, “The MoU affirms the FRA's willingness to promote sustainable finance activities in Egypt, in coordination with the relevant stakeholders globally. The upcoming period will witness the implementation of the MoU terms with The London Institute of Banking and Finance through the Regional Center for Sustainable Finance. Sustainable finance is gaining momentum, at the domestic, regional, and global levels. The FRA has a vital role in promoting sustainability and sustainable finance through capacity building and training programs for the non-banking financial institutions to help them in integrating the ESG practices into their strategies and operations,” said Dr. Mohamed Farid Saleh, FRA Executive Manager.

British Ambassador to Egypt Gareth Bayley said: “This agreement signals our continued commitment to our green partnership with Egypt, supporting its green transition journey. In addition to moving towards renewable energy, having a sustainable financial sector is just as important in achieving positive change. Last year, we implemented a cooperation framework to drive the integration of sustainable finance principles in the financial sector within Egypt and North Africa, and this year, we are delighted to continue providing invaluable technical assistance through the London Institute of Banking and Finance, in cooperation with Egypt's Financial Regulatory Authority. This kind of collaboration will help ensure Egypt's green transition succeeds and continues to deliver on the principles of COP26 and COP27."

“In working together to promote sustainability in Egypt, LIBF will exchange technical expertise with the FRA and assist in the field of sustainable finance and related fields,” said Kareem Refaay, LIBF’s Managing Director.

A key initial step for the MoU includes LIBF providing technical support to the FRA to draft an agenda for policies and strategies to promote sustainable finance.

This will involve collaboration on the design and implementation of approved professional training programmes in this field for the non-banking financial sector in Egypt.

The content will cover how to adopt a sustainable approach, green finance tools, a special reporting framework (ESG, TCFD,GRI), and an introduction to sustainable insurance and responsible investment.

High-profile signing ceremony

The Financial Regulatory Authority, represented by the Regional Center of Sustainable Finance (RCSF) signed an MoU with LIBF to promote sustainable financing in the non-banking financial sector in Egypt.

Dr.Islam Azzam with Kareem Refaay, signed the MoU on Sunday 19 March 2023 at FRA headquarters. Guests from the British Embassy, His Excellency Gareth Bayley OBE, the British Ambassador to the Arab Republic of Egypt and other stakeholders to the RCSF were in attendance at this prestigious ceremony.

As part of the event, Emmanuel Rondeau, Director of the LIBF's Center for Sustainable Finance, presented a 60-minute CPD-accredited sustainable finance workshop, titled ‘The Challenges of Implementing a Sustainable Finance Framework.’