Each 10 % investments in SMEs green energy equals around 100 billion dollars returns in economic, social and sustainable developments


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In the second session of “El Nas we El Benok” - 17th edition

Ashraf El Kady: Each 10 % investments in SMEs green energy equals around 100 billion dollars returns in economic, social and sustainable developments

Ashraf El Kady- The Chief Executive Officer and Managing Director

  • SMEs represent 65% of the Egyptian economy structure.
  • Complementarity of the four side to set a green investment map: the state, The Central Bank and the banks, and the International financing institutions.
  • 4 developmental reflections to the green economy mechanisms.
  • 500 million dollar from the European Bank to rebuild and develop has been directed to SMEs greenly finance in Egypt from 2015 to 2021.
  • UB works as per a national agenda responsible for maximizing green finance mechanisms and attract SMEs investors.
  • UB road map to the responsible compliance standards in investment projects sector.
  • UB provides a package of banking and digital solutions for SMEs investors.
  • UB is a main contributor in supporting medium and small enterprises Fund of the Funds.
  • The green economy equation= maximizing digital services = boosting trade internally and externally.
  • The customer’s right to enjoy the fruits of technology.

Cairo: 25th of October 2023

The United Bank has participated in “El Nas we El Benok” conference - 17th edition.  the conference was held under the slogan of “The Road to Sustainability and Green economy”.  It was inaugurated in the presence of Nevine Mansour – Minister of Finance consultant, Dr. Mostafa El Fekky - CEO of The Arab Media Center, Mohamed El Atreby- CEO of Misr Bank and President of Banks federation, Yehia Abou El Fotouh – Vice president of The National Bank of Egypt and Secretary General of the conference. And Sabry Ghonem- Managing Director of The Arab Media Center, Wafaa El Ghazaly- The Executive Manager of The Arab Media Center in presence of banking expertise, businesspersons, and media and journalism representatives

The conference discussed many important axis. Such as: green finance and its mechanisms, sustainability and the role of banks, digitization of banking and financial services, the future of SMEs and support local industry, cyber security amid the digital transformation.

That was beside announcing the winners of “innovation and research competition”, organized by The Arab Media Center, with the cooperation of Egyptian Banking Institute on two axis:

  • The first axis: the artificial intelligence role in improving banking services.
  • The second axis: the future of virtual currencies for central banks… chances and challenges.

In the second session, held under the slogan of “Digitizing The Financial and Banking services” Mohamed Beder- The Chief Executive Officer of QNB moderated the session. It handled many axis: the role of the digital financial and banking solutions in setting the economy system and transforming them into the electronic digital system, providing innovative products to expand and reach the largest possible segment of customers. In addition to the challenges facing banks in applying digitization mechanisms.

Ghada labib- Deputy Minister of Communications and Information technology for corporate organization development, Tarek El Khouly – Chief Executive Officer and Managing Director, SAIB, and Ashraf El Kady- Chief Executive Officer and Managing Director, The United Bank, participated in the second session.

SMEs represent 65% of the Egyptian economy structure

Commenting on banks concerted efforts to digitize financial and banking services for large corporates and medium and small enterprises, Ashraf El Kady stated that the state alongside with The Central Bank of Egypt pay a great attention to Small and Medium Enterprises. SMEs represent around 65% of the national economy structure. Developing this promising sector is a kind of a pawn on the black horse for sustainable development for our nation.

He added that the volume of granted finance for this sector has been increased with 250% from year 2015 to 2021. Moreover, launching many presidential and The Central Bank of Egypt initiatives attract many different investors segments.

El Kady pointed out that each 10 % investments in SMEs green energy equals around 100 billion dollars returns in economic, social and sustainable developments.

Complementarity of the four side to set a green investment map: the state, The Central Bank and the banks, and the international financing institutions.

El Kady highlighted that green investment map required the cooperation of the four- sided authorities: the state with its different systems- banks led by CBE- financing institutions either local or international- civil society institutions to innovate green finance packages and with competitive advantages that meet the requirements of SMEs current and future investors.

4 developmental reflections to the green economy mechanisms

El Kady defines four developmental reflections for the green economy applications:

  • Securing the targeted economic growth for Egypt against climate change and pollution with its different kinds.
  • Achieving sustainable economic rates in a rapid and eco- friendly attitude.
  • Depending directly on green investments. Which serves the environmental resources without depletion.
  • Keeping the upcoming generations rights.

500 million dollar from The European Bank for rebuild and development have been invested in empowering Egyptian SMEs within 11 banks between 2015- 2021

El Kady praised the developmental approach for a number of international financing authorities. Coming on top The European Bank for rebuild and development, that invested to develop green private sector and SMEs. The bank provided many finance facilities to 11 bank in Egypt since 2015. Aiming to re-pushing those investments for private sector SMEs with competitive rate.

The European bank aims to requalifying those companies to minimize resource consumption, reducing thermal emissions with 20%, and qualifying them once more for green energy applications. Thus, transforming into green eco-friendly investments. The EB determined the main activities for finance: water, transportation, renewable energy, agriculture, and recycling.

In the framework of empowering women and youth economically, EB provided a number of consultation services: controlling and reducing emissions resulted from manufacture, and link it with the profit. Moreover, providing some training on the conditions of executing export deals.

UB works as per a national agenda responsible for maximizing green finance mechanisms and attract SMEs investors

          On a parallel level, El Kady mentioned that UB works according to a national agenda to develop SMEs sector, for the well fair of Egyptian economy and as per Egypt vision 2030.

UB road map to the responsible compliance standards in investment projects sector

       El kady pointed out that UB strategy is centered in provided finances for SMEs services in many fields, like: agriculture, industry, productivity and service.

UB defined four responsible conditions in addition to CBE policy to evaluate the competence of these investments, and how to finance them.

First: Economically

The ability of these SMEs green investments to double up the development rates and serve provided to citizens. Through increasing operation rates, settling national industry, and increasing the productive efficiency to maximize the sustainable return.

Second: Socially

Developing the ability of these investments to support innovation, Egyptian minds, entrepreneurships and developing value chains aiming to create job opportunities, leveling up the lifestyle of the Egyptian citizen, achieving the financial inclusion, and reducing unemployment and crime rates. Moreover, expanding services, products, and increase its compatibility.

Third: Environmentally

Assessing how far those investments contribute to reducing carbon emissions that resulted from fuel and oil usage. The thing that reduces the emissions resulted like carbon dioxide gas.

Fourth: Technologically

Developing the ability of these investments to deepening digital applications and boosting their usage to support the digital transformation process in Egypt.

UB is a national partner in green finances

Ashraf El Kady stated that UB is a national partner in the green finances for economic entities with its different kinds. Either large corporate or medium or small enterprises. Also, changing the culture and individuals practices, and directing them to accomplishing balance between land and maritime life, and reducing the impacts of mal treatment of environment resources to keep the upcoming generations rights.

Large corporate sector

El kady emphasized that UB pays great attention to agricultural, service, and logistics sector in agricultural, industrial, and service fields. Due to its strategic importance and its direct link to national food security.

UB has participated in many syndication loans as: The Canal Company for Sugar. This project contributes in reducing imports and increasing exports.

The project includes reclaiming 181 thousands of acres in eastern Menya. Establishing and operating the factory to produce sugar with huge productive energy to replace the imported product with local product. Thus, settling the local industry. Moreover, developing Upper Egypt, providing direct and indirect job opportunities. In addition to expanding the agricultural area and increasing contracts among farmers with surrounded lands.

SMEs sector

  • UB participated as a founder in “Avanz Manara” Fund of the Funds. The strategic fund works on developing SMEs in Egypt aiming to maximize the economic return, within the framework of the state and the CBE.
  • Expanding in financing public transportation and transform them into green transportation.
  • The sustainable finance challenge requires collaboration of the state with its different authorities along with banks, funding institutions, and NGOs organizations to provide competitive finance, motivations, and advantages for industrialists and investors, especially that these kind of projects are characterized by achieving economic, social and environmental sustainable dimensions. As well as, its effect on reducing the climate negative emissions, the thing that have positive reflections on the citizen and the society as whole.
  • Expanding in the finance directed to the agriculture sector and food security companies. Which is based on expanding the farming land and doubling up agriculture produce, increasing supply chains and distributing to increase operation and development rates.
  • Encouraging entrepreneurships. Through providing packages of banking and non-banking services via the three “Nile Pioneers” centers under the auspices of the CBE. UB has three centers, one in Cairo, One in Dakhalhlya, and one in El Menya. These centers provide packages of consultations, and technical support to help projects achieves sustainability.

It is worth mentioning that UB supported a number of industrial sectors, such as: furniture industry, textile and ready-to-wear industry, dairy, and plastic industries.

  • UB provides an innovative group of digital services that works 24/7: Corporate Online Banking, that grants many advantages to customers, such as: making all internal transactions, wire transfer, letter of guarantees, payment of all government bills (taxes- customs- insurance), trade services, cash management. All with the latest investment methods, that guarantee maximizing corporates profits. As well as, viewing all corporates accounts.
  • The cash management service qualifies the corporates with all kinds (large/ SMEs) to get the maximum benefit of its balances and accounts, through investing those balances in investment or saving pots that are managed electronically, this takes place by a continuous authorization from the companies to UB with management and following up via distinctive and simple digital solutions.
  • Specialized financing solutions to develop microfinance projects are launched. Through UB digital wallet and the availability to re-pay through it. Aiming to develop value chains and eliminate many social and economic problems. The thing that contributes to eliminate many social and economic problems, like: corruption, unemployment and crimes..etc. as well as, its effective role in merging the parallel economy with the formal one, and improving the citizen’s lifestyle, and changing the consumption culture into clean energy.
  • UB has joined the Instant Payment network Instapay to facilitate digital transactions.

Green finance for individuals

UB’s participation in the initiative of car conversion to operate with natural gas in 2021. The United Bank launched financial product to convert cars to operate with natural gas. On the sidelines of the first exhibition of technology for converting and replacing vehicles to work with clean energy “Go Green”, under the patronage of the president of the Republic, and with the coordination of the Ministry of Trade and Industry, and CBE, and a number of relevant ministries. The initiative aims to maximizing the benefits of the economic reform gains to the Egyptian citizen, through:

  • Maximizing the use of natural gas as an alternative for fuel for diesel and gasoline. This would achieve great economic and material savings in the general budget of Egypt. It contributes in directing these savings to support the sectors of health, education and scientific research to advance the system of services provided to the Egyptian citizen and improve his life.
  • Eliminating pollution and harmful environment emissions that affect the health of the citizen and the surrounding environment from the effects of using the fuels.
  • Achieving the maximum benefit of the production capacity of the Egyptian car factories and the related industries. The thing that contributes to production maximizing and increase the local production and raising the employment rates. So, reducing unemployment and increasing exports.

Regarding UB vision for the future of digital financing and its impact especially on SMEs

El Kady pointed out that UB follows an ambitious strategy aiming to increasing the productivity of manpower and focusing on the value of development and improving the provided digital services and banking products. Moreover, establishing smart models that works with high dynamics to insure the continuity of work and developing its future capacity.

He added that the technological renaissance that Egypt witnesses in the present days and that is adopted by the Egyptian state as a national strategy for digitization and artificial intelligence emphasize that Egypt is serious about making radical solutions to control climate change and reduce carbon emissions. As well as, contributing in transforming Egypt into a regional center in Africa and The Middle East. Supported by the idea of the successful steps taken by Egypt in establishing huge network and modern infrastructure, roads, creating urban communities as per smart cities technology.

The green economy equation= maximizing digital services = boosting trade internally and externally

Ashraf El Kady pointed out that with the huge spread of e-trade, there have been a dire need to a new flexible banking transactions in service and performance. UB has reached to a wide big of clients and succeeded in providing them with distinctive banking services. Furthermore, UB is able to attract new segments of clients. Especially with the growth of SMEs sector and the increase of local and international investments, along with the low-cost advantage and developing the human powers to cope with this kind of the globally developed and smart services.

The clients have the right to enjoy the fruit of technology, which is positively reflected on saving effort, time and economic activity growth

El kady stated that UB is fully devoted to develop its technological systems continuously especially with paying great attention towards achieving the financial inclusion system. So. It is the right to enjoy the fruitful gains of smart technology and its applications. Which have the direct and positive impact on their lives. As it saves time and effort. Moreover, technology contributes to the economic activity growth.