Egypt’s Minister of Local Development, Dr. Manal Awad, held high-level talks with a World Bank delegation this week to review the ongoing implementation of the Upper Egypt Local Development Program, which has delivered transformative infrastructure, economic, and governance reforms since its inception in 2018.
The delegation, led by Ellen Olafsen, Senior Specialist in Private Sector Engagement, and Zeeshan Karim, Senior Urban Development Specialist, met with Dr. Awad at the ministry’s headquarters to discuss next steps in improving the business climate and deepening private sector involvement in industrial zones across Upper Egypt.
Transformative Impact Since 2018
During the meeting, Dr. Awad reaffirmed Egypt’s strong partnership with the World Bank, describing the Upper Egypt program as one of the most successful development models between the two parties.
She noted that the initiative has significantly improved the quality of services and infrastructure for over 8.2 million citizens across four governorates—Sohag, Qena, Minya, and Assiut. More than 6,000 projects have been completed with investments totaling EGP 32 billion (approx. $1 billion), focusing on roads, sanitation, electricity, and local economic development.
Notably, 40% of investments were channeled into strengthening local economic capacities and institutional development—particularly through upgraded service centers and support for industrial clusters.
“This program has not only enhanced infrastructure, but also laid the groundwork for decentralized governance and robust private sector participation,” Dr. Awad said.
Private Sector Engagement and Economic Clusters
The World Bank delegation expressed strong satisfaction with the results of their recent field visits to the program’s target governorates. According to Dr. Hesham El-Helbawy, National Director of the program, the team met with local governors, stakeholders, and members of industrial clusters in Sohag, Qena, Minya, and Assiut.
One key highlight was the economic clustering model, with 12 clusters now active—including a successful medicinal and aromatic plant cluster in Qena. These clusters aim to enhance local value chains, attract investment, and create jobs. Most cluster plans are expected to be fully implemented by October 2025.
The World Bank delegation praised the increased satisfaction among over 72,000 enterprises that have benefitted from a more efficient business environment. 85% of business owners reported satisfaction with the program’s interventions.
“The government’s efforts to simplify licensing, improve service delivery, and involve the private sector in managing industrial zones are clear indicators of reform,” Olafsen said.
Toward National Replication and Policy Integration
The World Bank team emphasized their support for Egypt’s vision to expand the program’s best practices nationwide, including the economic cluster model and efforts to digitize and streamline local government services.
Zeeshan Karim hailed the initiative as one of the most successful World Bank projects in Egypt, particularly in local governance reform and job creation.
“We see enormous potential for replicating this integrated model in other governorates to ensure economic, environmental, and social sustainability,” Karim said.
Dr. Awad added that the Ministry of Local Development has developed a national map of economic clusters, laying the groundwork for strategic expansion across Egypt in alignment with the country’s 2024–2027 decentralization and economic development roadmap.
