H.E. Dr. Rania A. Al-Mashat, Minister of Planning, Economic Development, and International Cooperation:

Public Investment Governance and Structural Reforms Stimulate Private Sector Participation in Leading Development Efforts

Innovative Financing Tools from Development Partners Reduce Financing Costs for the Private Sector and Stimulate Investment in Vital Sectors

We are Committed to Increasing and Diversifying Financing Tools for the Private Sector through Strategic Partnerships with Development Banks and International Institutions

The World Bank’s Unified Guarantee Platform and the EU Investment Guarantee Mechanism Provide Additional Channels for Financing Egypt’s Private Sector

The Ministry of Planning, Economic Development, and International Cooperation announced that international financial institutions invested approximately $890 million in Egypt's private sector companies during November, spanning key sectors such as climate finance, small and medium-sized enterprises (SMEs) development, green tourism transformation, and expansion of renewable energy projects under the "NWFE" program.

In H.E.’s remarks, Dr. Rania A. Al-Mashat emphasized that empowering the private sector is a core component of Egypt's strategic partnership with multilateral development banks and international institutions. This aligns with the government’s vision to expand the private sector's role in leading development efforts. She highlighted the government's initiatives in public investment governance and the implementation of the national structural reform program with its three key pillars to encourage the private sector's larger involvement in development.

H.E. Dr. Al-Mashat stressed the importance of the progress achieved in the national structural reform program, specifically its three main pillars: enhancing macroeconomic stability, improving the Egyptian economy’s competitiveness, and supporting the transition to a green economy. She added that the reforms stimulating the private sector would positively impact Egypt's economic indicators and growth in the short term.

H.E. Minister Al-Mashat explained that the ministry, through its country strategies with development partners, continuously discusses innovative financing tools that could benefit Egypt’s private sector, ranging from large companies to SMEs and startups. H.E. noted the “HAFIZ” Hub for Advisory, Finance and Investment for Enterprises that connects the private sector with development partners to enhance its access to these tools.

H.E. Dr. Al-Mashat also highlighted the diversity of investments from multilateral development banks in Egypt during November, which employed innovative financial instruments and supported climate action and sustainability, including guarantees provided by the European Bank for Reconstruction and Development (EBRD), investments in sustainable bonds for the Arab African International Bank, green tourism financing, and expanding renewable energy capacities through the "NWFE" program.

H.E. Minister Al-Mashat pointed out that the innovative financing tools provided by international partners contribute to reducing financing costs for the private sector, offering longer repayment terms and lower interest rates compared to commercial financing. These tools also help reduce risks and stimulate investments in priority development sectors. 

The ministry, in partnership with the World Bank, is working to enhance Egypt’s private sector’s use of the unified guarantee platform launched by the World Bank in July, which will encourage greater private sector involvement in development efforts. 

Additionally, the ministry is in discussions with the European Union to activate the investment guarantee mechanism announced in March, valued at €1.8 billion, which is expected to further boost private sector investments in Egypt.

International Finance Corporation (IFC)

The IFC led the investments last month, signing agreements worth $605 million with three private sector companies during the visit of Sergio Pimenta, IFC Vice President for Africa, to Egypt. 

This included a $300 million investment in sustainability bonds issued by the Arab African International Bank, marking the first such bonds in Egypt and the largest of their kind issued by a private bank in Africa. Additionally, the IFC signed a sustainability-linked financing agreement worth $155 million with Orascom Development Egypt to support green tourism through energy and water efficiency improvements and reducing greenhouse gas emissions in hotels along the Red Sea coast. The IFC also provided $150 million in financing to the Commercial International Bank to strengthen the bank’s financial position amidst current economic challenges and support its commitment to expanding financing for micro, small, and medium enterprises (MSMEs), including women-owned businesses.

European Bank for Reconstruction and Development (EBRD)

The EBRD signed financing and investment agreements worth $184 million, including $100 million in sustainable bonds for the Arab African International Bank. 

The EBRD also provided a $26 million guarantee to the Commercial International Bank to enhance financing for SMEs, helping increase access to long-term financing and risk-sharing products. Furthermore, the EBRD issued a $37 million guarantee to QNB Alahli to support the growth of SMEs and microenterprises in Egypt and mitigate credit risks for new financing, improving their competitiveness and operational sustainability.

In another development, the EBRD extended a concessional loan of $21.3 million to Red Sea Wind Energy Company to finance the expansion of the wind power plant in the Gulf of Suez, one of Egypt’s largest renewable energy projects, supporting the country's shift to renewable energy and sustainable development under the “NWFE” program.

British International Investment (BII)

The BII reinforced its investments in Egypt by committing $100 million in sustainability bonds issued by the Arab African International Bank.

It is worth noting that H.E. Dr. Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, serves as Egypt's Governor at both the World Bank and the European Bank for Reconstruction and Development. The ministry is working to implement the strategic partnership framework with the World Bank until 2027 and the country partnership with the EBRD until 2027, both of which focus on empowering the private sector and improving the business environment.