During the 2025 Spring Meetings of the World Bank Group and IMF, Dr. Rania Al-Mashat, Egypt’s Minister of Planning, Economic Development, and International Cooperation, held a high-level meeting with Makhtar Diop, Managing Director of the International Finance Corporation (IFC). The strategic discussion marked a key moment in Egypt’s mission to strengthen private sector participation, accelerate structural reforms, and attract sustainable investments.
During the meeting, Dr. Al-Mashat reaffirmed Egypt’s clear commitment to reducing the state’s role in economic activities while empowering local and international private investors to spearhead development. She emphasized that this transformation lies at the core of Egypt’s economic reform agenda, which includes the implementation of the State Ownership Policy Document and a robust structural reform program aimed at fostering a more competitive and investor-friendly business environment.
A central point of discussion was the growing partnership between Egypt and the IFC in privatizing key national assets. Among the highlights was the advancement of a landmark agreement involving the private sector participation in Egypt’s airport operations. This collaboration builds on the broader government IPO program, first formalized in June 2023, and underscores Egypt’s vision for restoring the private sector as a principal engine of economic growth. Dr. Al-Mashat noted that the upcoming visit of Mr. Diop to Cairo in June 2025 will provide an ideal opportunity to evaluate progress and explore new avenues of joint action.
Egypt’s approach to fostering investment is multi-dimensional. The government is actively working to simplify tax structures by unifying corporate taxes—an initiative driven by President Abdel Fattah El-Sisi’s recent directives. These reforms aim to streamline procedures, alleviate financial burdens on investors, and enhance the ease of doing business across the country. Simultaneously, Egypt is digitizing investor services, modernizing the regulatory framework, and accelerating licensing processes—all with the goal of positioning Egypt as a regional hub for trade, investment, and industry.
Dr. Al-Mashat also highlighted Egypt’s strategic shift toward developing tradable and export-oriented sectors, with a strong focus on non-oil manufacturing. This sectoral transition is supported by a comprehensive package of legislative and institutional reforms designed to expand private sector involvement in key industries such as infrastructure, education, energy, and healthcare.
IFC’s growing investment footprint in Egypt stands as a testament to the success of this strategy. As of March 2025, IFC’s portfolio in Egypt reached $2.4 billion, with an additional $25.7 million in technical assistance and advisory services. These investments span a wide range of industries including financial services, agribusiness, health, education, manufacturing, tourism, retail, and construction. Notably, IFC played a leading role in mobilizing $653 million for Egypt’s Benban Solar Park, one of the largest renewable energy projects in the world.
Further reinforcing the investment ecosystem, Egypt is working closely with the European Union to expand its €1.8 billion investment guarantee mechanism. Dr. Al-Mashat underscored the importance of collaborating with IFC to broaden the impact of this guarantee scheme, particularly to attract more foreign direct investment in vital sectors like clean energy, infrastructure, and logistics.
The meeting also touched on the State-Owned Enterprise (SOE) Governance Bill, recently approved by Egypt’s Cabinet. This legislation is a cornerstone of Egypt’s ongoing reforms to regulate state involvement in commercial activities, enhance transparency, and encourage greater private investment in state-held assets. Dr. Al-Mashat highlighted the government’s efforts to ensure alignment across ministries, including planning, investment, and finance, to maximize returns from public assets and ensure policy cohesion.
In line with Egypt’s National Climate Change Strategy 2050, the discussion explored ways to scale up green finance and investments in waste-to-energy projects, which offer dual benefits: environmental sustainability and clean energy generation. The Minister reiterated Egypt’s desire to work with IFC to unlock more financing for such initiatives, while promoting circular economy models and clean technology adoption.
Makhtar Diop, for his part, expressed admiration for Egypt’s economic resilience and reform momentum. He confirmed IFC’s commitment to not only support Egyptian companies but also to attract global investors to the country. He revealed ongoing discussions with several international firms exploring entry into the Egyptian market, and emphasized that IFC will use the successful experience in Egypt as a blueprint for expanding operations in other emerging markets, including Iraq.
IFC’s deepening engagement in Egypt is underpinned by over $9 billion in cumulative investments since 1975, with recent years witnessing a sharp rise in disbursements. Dr. Al-Mashat concluded by stressing the importance of Egypt’s collaboration with the World Bank on the forthcoming Business Readiness Report, which will benchmark Egypt’s investment climate and provide actionable insights for policy improvements. The report is expected to serve as a roadmap for both public and private stakeholders to align strategies and unlock Egypt’s full economic potential.
