Egypt’s Ministry of Planning, Economic Development, and International Cooperation has announced that development financing for the local and foreign private sector in the country reached a substantial $4.2 billion by the end of 2024, marking a significant increase from $2.9 billion in 2023. This growth reflects both the rising attractiveness of Egypt’s private sector and the success of the structural reforms implemented by the government to encourage financial support for businesses in the country.
This figure is part of the 2024 Annual Report published by the Ministry, highlighting the government’s efforts to empower the private sector as part of its broader vision to increase private sector participation in economic activities, drive sustainable growth, and improve the competitiveness of Egypt’s economy.
Key Achievements in 2024
Among the ministry’s key activities last year was its coordination with the World Bank, National Investment and Foreign Trade Ministry, and the General Authority for Investment and Free Zones. The goal was to prepare a detailed study on foreign direct investment (FDI) in Egypt, a project in line with President Abdel Fattah el-Sisi’s directives. Additionally, the Ministry is preparing another study on industrial development in Egypt with the World Bank’s support.
Throughout 2024, Dr. Rania Al-Mashat, Minister of Planning and Economic Development, held several technical meetings with delegations from the World Bank Group, including a key meeting with Ajay Banga, President of the World Bank, during the Annual Meetings in Washington. These discussions were aimed at developing a new strategy for foreign direct investment (FDI) in Egypt, covering the period 2025-2030.
Boosting the Private Sector’s Role
The government’s commitment to investment governance and adhering to the one trillion Egyptian pound public investment ceiling has encouraged a surge in private sector investments. In Q1 of FY 2024/2025, private sector investments amounted to 133.1 billion EGP at fixed prices, accounting for around 63.5% of total investments. This represents a 30% growth compared to the same period last year, underscoring the success of Egypt’s ongoing structural reforms to create a more favorable investment environment and boost private sector involvement.
In another notable move, Dr. Mashat oversaw the signing of an agreement for the 100% sale of Tamweely, a microfinance company previously owned by N.A. Capital and Ayadi, to a group of international investors. This marks a successful exit for state-owned companies, demonstrating the government’s commitment to implementing its State Ownership Policy and privatization efforts in line with the government’s three-year program to build a more competitive economy, increase foreign direct investment, and boost sustainable growth.
Innovative Financing Tools and International Partnerships
As part of its strategy to promote private sector growth, the Ministry has worked closely with international financing institutions such as the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA), both part of the World Bank Group. These institutions have played a key role in facilitating concessional financing and encouraging investments in Egypt’s private sector.
Thanks to these partnerships, Egypt saw a notable increase in development financing for the private sector, reaching $4.2 billion by the end of 2024. This is a significant rise from $2.9 billion in 2023 and further highlights Egypt’s growing appeal as an investment destination.
In November 2024, international institutions injected $890 million into the private sector across vital areas, including climate financing, small and medium-sized enterprise development, green tourism, and renewable energy projects under the Nuvia program. The IFC led the charge, with investments totaling $605 million in three private sector companies, including a $300 million investment in sustainability bonds issued by the Arab African International Bank, the largest of its kind in Africa.
Supporting Green and Sustainable Development
In 2024, Dr. Mashat also inaugurated a workshop aimed at enhancing foreign direct investment through the World Bank Group’s guarantee platform, which encourages private capital flows into development initiatives. The goal is to increase the issuance of guarantees from $20 billion annually by 2030, addressing the development gaps and directing financial flows towards critical national priorities.
The Ministry’s efforts have also extended to agriculture, with a special focus on sustainable food systems. In 2024, Dr. Mashat opened a regional workshop organized by the International Fund for Agricultural Development (IFAD), focusing on the role of the private sector in financing the transformation of food systems. The workshop sought to strengthen partnerships between the government and the private sector to promote food security and enhance investment in sustainable food systems.
Platform for Private Sector Development: HAFIZ
As part of the drive to support Egypt’s private sector, the Ministry launched the HAFIZ platform, a financial and technical support initiative aimed at enhancing communication between private companies, development partners, and government institutions. This platform provides a centralized hub for information on financial and non-financial solutions, funding opportunities, and training programs available to private enterprises.
The HAFIZ platform also facilitates access to over 85 financing services offered by 32 development partners, alongside hundreds of local and international tenders and initiatives, contributing to enhanced competition in global markets.
In addition to the HAFIZ platform, the Ministry hosted meetings with major international institutions such as the Japan Bank for International Cooperation and the UK Export Finance Agency. These efforts aimed to boost private sector investments and promote the government’s reform programs, particularly those related to foreign direct investment.
Egypt’s $4.2 billion in financing from international institutions marks a successful year for the country’s private sector, demonstrating the positive impact of its economic reforms and the government’s commitment to fostering an environment conducive to private investment. Through strategic partnerships and innovative financial tools, Egypt is positioned to continue attracting substantial private sector investments, driving economic growth and achieving the long-term vision of sustainable development.
