Egypt’s Prime Minister Mostafa Madbouly emphasized the country’s strategic pivot to private-sector-led growth, unveiling a suite of structural reforms, funding mechanisms, and regulatory frameworks designed to empower entrepreneurs and attract sustainable investment.
Speaking at the Development Finance for Private Sector Empowerment: Economic Growth and Employment forum—hosted by the Ministry of Planning, Economic Development and International Cooperation—Madbouly reaffirmed the private sector’s central role in driving Egypt’s economic future.
“The private sector is no longer just a partner—it is the backbone of the Egyptian economy,” Madbouly stated. “It currently generates over 80% of job opportunities and contributes nearly 70% of GDP.”
New Model for Public-Private Partnership
Prime Minister Madbouly highlighted a sweeping set of reforms that have redefined the role of the state in the economy, including the launch of the State Ownership Policy Document, designed to reduce public-sector intervention and open state-owned enterprises (SOEs) to private investment.
The government has capped public investment to prioritize completion of projects with over 70% implementation rates, creating space for private capital while improving overall investment efficiency. Egypt has also overhauled its Competition Protection Law (2024) to prevent monopolistic practices, foster competitive markets, and enhance transparency.
Further reforms include the introduction of the “Golden License”, streamlining permits for strategic projects, along with a restructuring of the taxation system and the digitalization of business services—moves aimed at solidifying investor confidence and modernizing Egypt’s business climate.
Resilience Amid Global Headwinds
Despite global geopolitical and economic challenges, Egypt’s economy remains on a positive trajectory, with real GDP growth reaching 4.3% in Q2 of FY2024/2025. The country has also seen a 33% rise in non-oil exports, a drop in unemployment to 6.3%, and increasing FDI inflows alongside fiscal consolidation, including reducing the fiscal deficit to 6.5% and targeting public debt levels of 85–87% of GDP.
“These outcomes confirm that we are on the right track toward sustainable and inclusive growth, led by the private sector,” Madbouly declared.
Private Sector Receives Record $4.2 Billion in Development Finance
A key moment at the conference was the announcement that development finance directed to the private sector surpassed that of the public sector in 2024, reaching $4.2 billion—a historic shift enabled by global partnerships and targeted reforms. Since 2020, the total cumulative development financing for private sector initiatives has exceeded $15.6 billion.
New EU Investment Guarantee Mechanism Launched
In a major development, Egypt and the European Union officially launched the EU Sustainable Development Fund Plus (EFSD+) Guarantees Mechanism, which will provide €1.8 billion in investment guarantees for high-impact private sector projects.
The initiative—first conceived during the Egypt-EU Summit in March 2024—will be implemented by institutions including the European Investment Bank (EIB), European Bank for Reconstruction and Development (EBRD), KfW, IFC, and Italy’s CDP. It is designed to de-risk investments in critical sectors such as renewable energy, green transition, food security, human capital, and infrastructure.
Dr. Rania Al-Mashat, Minister of Planning and Economic Development, emphasized the ministry’s role as national coordinator of EU economic relations, underscoring the importance of its “HAFEZ” platform, which facilitates financial and technical assistance for private enterprises.
“Our focus now is on channeling these global tools to real businesses, especially in underserved regions and among women- and youth-led enterprises,” Al-Mashat said.
Focus on Inclusion, Green Industry, and Women Entrepreneurs
Egypt has aligned its financing reforms with global development priorities, including the UN SDGs and climate commitments. The country was recently selected by the Climate Investment Funds (CIF) as one of just seven nations globally to benefit from a $1 billion green industry program, targeting emissions reductions and low-carbon manufacturing.
The reforms also place strong emphasis on financial inclusion, with tailored support mechanisms for women-led SMEs and companies operating in the informal economy—part of an effort to formalize operations and integrate them into the national tax and legal systems.
To scale these efforts, the Ministry of Planning signed a cooperation agreement during the conference with the Federation of Egyptian Industries, Chambers of Commerce, and business associations, to extend partner development services to thousands of entrepreneurs across the country.
Looking Ahead: A Competitive, Private-Led Economy
Concluding his speech, Prime Minister Madbouly reaffirmed Egypt’s long-term vision of transitioning from a state-driven to a private sector-led economy, where government plays a regulatory and enabling role. “We are committed to accelerating reforms, enhancing governance, and ensuring that Egypt becomes a competitive, investment-attractive economy driven by innovation and production,” he said.
