EGYPT

Overview

The Red Sea hosts more than 1,000 different species of fish and approximately 350 coral species with a high rate of endemism of 14.7%, ranking third globally. Although immensely valuable, coral reefs in the Egyptian Red Sea are being degraded by a host of human and natural factors. The Egyptian Red Sea Initiative (ESRI) will further the conservation of these exceptionally resilient coral reefs by scaling coral reef-positive blue economic growth and conservation finance in the Egyptian Red Sea. The ERSI aims to reduce drivers of coral reef degradation while simultaneously developing new finance sources and mechanisms for reef-friendly business and livelihoods, including a new Egyptian Fund for Coral Reefs (EFCR) which will leverage finance to accelerate the development of reef-positive businesses. The programme will also advance science on coral reef resilience, identify and protect climate refugia, and implement sustainable financing mechanisms for Marine Protected Areas (MPAs) that harbour critical coral reef ecosystems.

Innovation and Growth Levers

Egyptian Fund for Coral Reefs (EFCR): The EFCR will leverage and grow finance for reef-positive businesses that support conservation, economic development, community livelihoods, and enhanced community resilience to climate change. The EFCR will be based on GFCR’s standard blended finance approach, in which grants or concessional loans are disbursed to innovative businesses and initiatives in partnership with private capital sources. The EFCR is expected to pursue three key overarching strategies, including the provision of grants for conservation activities and early stage reef-positive businesses, potential deployment of blended finance tools that will mobilise private capital for scaling reef-positive activities, and support for the operation of a blue economy incubator to generate a viable pipeline reef-positive businesses and finance mechanisms.

Coral Reef Business Incubator: The programme will establish a Coral Reef Business Incubator that develops, funds, and supports scaling of reef-positive MSMEs and other coral-friendly organisations, community initiatives, and businesses that generate positive returns and benefit local communities, women, and youth. The CRBI will include elements of a venture studio, incubator, accelerator, and technical assistance facility, enabling it to support companies and nonprofits at a wide range of implementation phases from initial concept through growth stage.

Reef-Positive Financing Solutions (Enterprises and Financial Mechanisms)

Sustainable community Ecotourism in and around Wadi El Gemal: Gorgonia Hotel in partnership with Wadi El Gemal National Park (WEGNP) and the Abu Ghosoun Community Development Association (AG-CDA) has developed a community eco-tourism investment opportunity to support local communities while providing alternative tourism experiences that will reduce the pressure on coral reefs in and around the WEGNP located on the southern Red Sea coast of Egypt.

Organic Waste Upcycling for Urban Farming: This programme will build the capacity of Hurghada Environmental Protection and Conservation Association (HEPCA) to recycle organic waste and wastewater and use these products to foster and expand urban farming around Hurghada, while also promoting sustainable agriculture practices and economic opportunities for local farmers. The project will seek to reduce the flow of untreated wastewater onto the reefs, reduce the flow of organic waste into landfills, produce alternative livelihoods for local farmers, and generate sustainable revenue for HEPCA – the leading Egyptian Red Sea coral reef conservation organisation.

Coral Reef Aquaculture for Ecosystem Resilience and Aquarium Trade: This solution proposes to cultivate various coral reef ecosystem species, including corals, giant clams, sea cucumbers, and reef fish, primarily for release back into coral reefs in the Egyptian Red Sea. This solution will build on HEPCA’s existing onshore reproduction and growth facility in Port Ghalib, where giant clams and sea cucumbers have been successfully propagated and reared for sale for 7 years. Expanding this operation to collect and rear early life stages of corals and fishes will represent a major new initiative for Egypt, and this facility will become a globally-recognised test and demonstration site for larval collection and coral reef restoration and restocking, while providing alternative livelihoods for local residents.

Great Fringing Reef Mooring Systems Upgrade: This solution seeks to strengthen the existing mooring system network managed by HEPCA by installing mooring systems that can accommodate the larger boats that are increasingly used by dive/snorkel operators, creating a management plan to limit the size and number of boats visiting any given site, and putting in place a fee payment system for the use of mooring systems to ensure the long-term maintenance and monitoring of the mooring system network.

Additional Programme Resources

Egypt Brochure