Egypt faces critical sustainability challenges stemming from its high dependency on fossil fuels, particularly natural gas, which remains a core component of both the energy mix and broader economic sectors. The NWFE Program was launched in 2022 under Egypt’s COP27 Presidency as a strategic blended finance mechanism aligned with the country's National Climate Change Strategy 2050 and updated NDCs.
Egypt’s Country Platform ‑ Nexus of Water, Food and Energy (NWFE) Program
Abstract
Egypt faces critical sustainability challenges stemming from its high dependency on fossil fuels, particularly natural gas, which remains a core component of both the energy mix and broader economic sectors. This entrenched reliance makes the transition to renewable energy more complex and politically sensitive. Additional constraint includes limited grid infrastructure capacity, high perceived country risk that elevates financing costs, and restricted fiscal space that limits public investment. While Egypt has committed to increasing the share of renewables to 42% of its power mix by 2030 and modernising agricultural practices, mobilising capital at scale requires coordinated action among governments, development banks and private sector actors to de-risk investment and overcome structural barriers.
The NWFE Program was launched in 2022 under Egypt’s COP27 Presidency as a strategic blended finance mechanism aligned with the country's National Climate Change Strategy 2050 and updated NDCs. It was designed to systematically mobilise public, private, and concessional capital to support Egypt’s development priorities across key sectors. The platform operates as a coordinated framework that connects sectoral investment pipelines to financing solutions, aiming to deliver climate-resilient infrastructure at scale.
The Program is structured around four main pillars. The Energy Pillar, coordinated by the European Bank for Reconstruction and Development (EBRD), has mobilised USD 4.6 billion for renewable energy projects, supporting the decommissioning of 1GW of thermal power plants and advancing large-scale solar and wind developments. The Water Pillar, led by the African Development Bank (AfDB), secured USD 3.3 billion to modernise irrigation systems, improving water efficiency and resilience. Additionally, the water and food pillars, supported by the African Development Bank and the International Fund for Agricultural Development, mobilised USD 3.3 and 2.2 billion respectively by 2023 for projects to modernise irrigation systems in old agricultural lands and improve agricultural climate resilience - each of which is consistent with the country’s development path, its national strategy and objectives.
A defining feature of NWFE is its role as a centralised country platform that goes beyond traditional project coordination by aligning financing, technical assistance and investment pipelines across Egypt’s energy, water, food, and transport sectors. NWFE facilitates structured collaboration between governments, development partners, and the private sector, creating a shared framework to accelerate project preparation and secure blended finance. From a private investor perspective, NWFE supports projects to reach final investment decision (FID) by providing concessional capital, de-risking instruments, and technical assistance that enhance bankability and reduce financing costs.
Key partners include the World Bank, HSBC, Citi, the International Renewable Energy Agency, the Glasgow Financial Alliance for Net Zero, and the governments of the United States and Germany. Through this coordinated and investment-friendly approach, NWFE promote an enabling environment for climate finance aligned with Egypt’s broader development goals.
NWFE aims to mobilise over USD 10 billion in blended finance across the energy, water, food, and transport sectors by combining public, private and concessional funding. Since its launch in 2022, it has already secured more than USD 5 billion in investment commitments, contributing to the expansion of renewable energy, the modernisation of irrigation systems to boost agricultural resilience, and broader climate adaptation efforts. The platform has also established a strong model of cross-sector collaboration among governments, development finance institutions and private investors – offering a scalable blueprint for sustainable development financing.
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