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Projects in Egypt, Morocco, Tunisia Eligible for $11 Mn in Funding

Projects in Egypt, Morocco, Tunisia Eligible for $11 Mn in Funding

Thursday, 31 March, 2022 - 08:30
A model of a planned new capital for Egypt (File photo: Reuters)

The German Development Bank intends to provide financing grants for projects in 8 countries, including Egypt, Morocco, and Tunisia, with a maximum of $11.14 million.

The German Bank requires the employment of a minimum of 125 people for every million euros granted in the project through the "Investment for Employment" initiative.

The initiative is an investment mechanism established by the Bank on behalf of the Federal Ministry of Economic Cooperation and Development.

Speaking at a roundtable to announce the funding grants, the CEO of the initiative, Raouf Khalaf, said the initiative aims to create 100,000 jobs over the next five years.

The initiative operates in eight countries: Egypt, Tunisia, Morocco, Côte d'Ivoire, Ethiopia, Ghana, Rwanda, and Senegal.

It aims to increase investments, support emerging markets in Africa to create good job opportunities in the private sector, and back companies facing various challenges such as weak infrastructure and inefficient power, water, and road networks.

Khalaf said the initiative provides financial support to help investors who face difficulties securing the total funding required to start their projects in these countries.

He explained that these projects effectively contribute to social and economic development, reduce unemployment, and alleviate poverty, which is in line with the state's vision of increasing job opportunities for the youth.

In response to a question from Asharq Al-Awsat about the targeted sectors in the initiative and the expected revenue for the Bank, Khalaf explained that "all economic sectors are eligible for grants, except for projects that employ children, pollute the environment or projects that use harmful substances.

He reiterated that priority is always given to projects that employ more workers, adhere to green economy standards, and include a certain percentage of female workers.

Khalaf said that the German government directs part of the financial grants for emerging countries to the private sector to increase economic growth and reduce unemployment.

The initiative's official in Egypt, Karim Gad, explained that 300 requests for the grant were submitted from Egypt.

Last November, the initiative announced a call for proposals and requests in Egypt, and the final application received was in January.

Gad explained that a special invitation is being prepared for businesswomen and women's participation in the labor market.

He clarified that the initiative will start a private poll campaign, in line with the national strategy for empowering Egyptian women in 2030, which aims to improve women's conditions and support their community participation in development, which positively affects society.

The initiative launched four calls for proposals in Egypt in 2021. The contribution rates for the initiative vary based on the nature of the submitted project, whether it is a purposeful or non-profit project, as long as it can create job opportunities.

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