Egypt, AfDB sign $170M deal to support budget, advance structural reforms

Egypt has concluded a $170 million agreement with the African Development Bank (AfDB) for the second phase of the Private Sector Development and Economic Diversification Support Program, aimed at strengthening the state budget and accelerating structural reforms.

The agreement was accompanied by a $400,000 grant (around EGP 19 million) to support sustainability measures at the Abu Rawash Wastewater Treatment Plant.

Minister of Planning, Economic Development, and International Cooperation Rania Al-Mashat said the agreement reflects the strong, long-standing strategic partnership between Egypt and the AfDB, which has played a key role in advancing sustainable development across priority sectors, including water and sanitation, transport, and economic reforms.

She noted that the deal forms part of wider government efforts to mobilize concessional financing with development partners, expand fiscal space for human development spending, and push forward structural reforms.

Al-Mashat also highlighted the AfDB’s growing support for the private sector, pointing out that private-sector financing in 2025 was three times higher than government-directed financing, signaling strong confidence in Egypt’s economic prospects.

The second phase builds on the first tranche of the program, approved by Parliament in December 2024 with financing of $131 million.

Separately, the minister emphasized the importance of the Abu Rawash grant, noting that the facility is among the largest wastewater treatment plants globally, and that cooperation with the AfDB aims to improve its environmental sustainability and operational efficiency.

In May, Egypt and the AfDB also signed a financing agreement for the fourth phase of the Abu Rawash project, which will raise treatment capacity from 1.6 million to 2 million cubic meters per day. The expansion is expected to benefit 8.6 million people in Giza, while supporting water efficiency, public health, environmental protection, and agricultural use.

Previously, the ministry announced that concessional budget-support financing for the 2023–2026 period totals about $9.5 billion, targeting macroeconomic stability, improved investment conditions, deeper structural reforms, and a faster transition to a green economy.