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  • Monday, 15 January 2024

In Its Transition Report 2023-2024 | The European Bank for Reconstruction and Development (EBRD) applauds Egypt’s efforts to improve the business environment, enhance private sector participation, and launch the NWFE program to stimulate the transition to renewable energy

The EBRD highlighted the measures taken by the state to enhance private sector participation, increase investments, and improve the business environment. It also praised Egypt’s steps in increasing the proportion of renewable energy, transforming into a regional center for renewable energy, and launching the NWFE program, the connection between water, food, and energy projects. 

This came in the details of the transitional report for the year 2023-2024, which the EBRD issues annually, to highlight economic developments in the countries of operations in order to enhance the transition to an open market economy and encourage entrepreneurship.

The report pointed to the measures taken by the state to increase the percentage of renewable energy in the energy mix to the level of 42% by 2030 instead of 2035, and the launch of a program that enhances the state’s ambition in this regard by stopping the operation of many stations that operate on fossil fuels, in exchange for launching new stations that operate with renewable energy to ensure a fair and sustainable transition to renewable energy.

The report also noted the launch of the NWFE program, the connection between water, food and energy projects, within the activities of COP27, in Sharm El-Sheikh, and the state’s ambitious plan in the energy sector, which includes stopping the operation of 5GW of fossil fuel stations (9% of capacity) installed in Egypt and replacing it with 10GW of private solar and wind energy by 2028, to achieve a just transition to renewable energy.

The report also pointed to the state’s efforts to improve the business environment for investors in the Suez Canal Economic Zone, with the participation and technical support of the EBRD through projects supporting digital transformation, in addition to establishing a green hydrogen manufacturing center in that region. Administrative procedures have been simplified by introducing a one-stop system, and work continues to digitize investor services.

The report also urged accelerating the green agenda to achieve Egypt's goal of becoming a regional center for clean and renewable energy, and the importance of the authorities encouraging investments in solar and wind energy, and increasing investments in infrastructure to support the growth of the green hydrogen sector, to ensure energy security.

The report pointed out the approval of the state ownership policy document with the aim of increasing the role of the private sector and its contribution to the economy to 65% within 3 years, praising the government’s announcement of a plan to sell shares of 32 state-owned government companies, which increased in August 2023 to become 35 companies, and the results achieved within the framework of the program over the past period.

The report highlighted the regulatory reforms launched by the government to improve the business climate and promote equal opportunities in line with the State Ownership Policy Document, and taking measures to enhance competition fairness, most notably amending the Competition Protection Law to enable the Competition Protection Authority to regulate mergers and acquisitions and confront monopolistic practices; Issuing a competitive neutrality strategy, and establishing the Supreme Committee for Competition Policy and Competitive Neutrality. The government also amended the public-private partnership law.