CAIRO – 1 December 2024: International financing institutions invested $890 million into Egypt's private sector in November 2024, with a focus on critical sectors such as climate finance, renewable energy, small and medium enterprises (SMEs), and green tourism. This investment is part of Egypt’s broader development strategy under the “NWFE” program, which is aimed at supporting sustainable growth and accelerating the country’s transition to a green economy.
Rania Al-Mashat, Egypt’s Minister of Planning and Economic Development, highlighted the growing importance of the private sector in the nation’s development. She emphasized that ongoing reforms under the National Structural Reform Program are designed to stabilize the economy, enhance the business environment, and promote private sector contributions to economic growth.
"The governance of public investments and structural reforms have created a more favorable environment for private sector participation in development initiatives," Al-Mashat said. She added that these reforms would help drive Egypt’s economic transformation and strengthen the role of the private sector.
The Ministry of Planning, Economic Development, and International Cooperation has also been working to diversify financing mechanisms by partnering with international organizations. This collaboration aims to reduce costs for private companies and attract investment in priority sectors. Platforms like the World Bank’s Unified Guarantees Platform and the European Union’s Investment Guarantees Mechanism are being utilized to provide additional financing channels, lower risks, and support investments in key development areas.
Major Contributions from Financing Institutions
Several international financing institutions made significant contributions to Egypt’s development agenda in November:
- International Finance Corporation (IFC), the largest contributor, invested $605 million across various projects. This included a $300 million investment in Egypt’s first sustainability bond issued by the Arab African International Bank (AAIB), the largest private-sector sustainability bond in Africa. Other investments included $155 million in green tourism projects with Orascom Development and $150 million to the Commercial International Bank (CIB) to expand financing for SMEs and women-led businesses.
- European Bank for Reconstruction and Development (EBRD) invested $184 million, including $100 million for sustainability bonds with AAIB. The EBRD also issued a $26 million guarantee for CIB to support SMEs and a $37 million guarantee for QNB to enhance credit access for micro and small businesses. Additionally, the bank allocated $21.3 million to the Red Sea Wind Energy project, which aims to boost renewable energy capacity in the Gulf of Suez.
- British International Investment (BII) committed $100 million to AAIB’s sustainability bond, supporting Egypt’s renewable energy and sustainability efforts.
Strategic Vision for 2027
Looking ahead, the Ministry of Planning continues to strengthen its partnerships with the World Bank and EBRD, with a focus on empowering the private sector and fostering sustainable growth through 2027. Al-Mashat emphasized that these collaborations, along with innovative financing options, will create a more dynamic and sustainable private sector capable of driving Egypt’s long-term development agenda.
These investments and strategic initiatives are a significant step in Egypt’s efforts to build a more resilient, sustainable, and inclusive economy, paving the way for increased private sector involvement in the country’s development.
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