Egypt secures $15.6bln in development financing for private sector from 2020 to 2025
Arab Finance: The Ministry of Planning and Economic Development, and International Cooperation has launched a new report titled "Development Finance to Foster Private Sector: Led Growth and Job", highlighting Egypt's success in mobilizing $15.6 billion in concessional financing for the private sector from January 2020 to May 2025, as per a statement.
The report was unveiled during a high-level conference held under the auspices of Prime Minister Mostafa Madbouly in the New Administrative Capital, with the participation of ministers, development partners, international institutions, the European Union, and private sector representatives.
The event served as a platform to review both direct and indirect financing mechanisms extended by development partners to local and foreign private sector actors over the past five years.
Minister of Planning and Economic Development, and International Cooperation Rania Al-Mashat stressed that empowering the private sector is no longer optional but a strategic necessity to build economic resilience, foster sustainable growth, and create employment.
She emphasized that development financing plays a crucial role in addressing the global financing gap by offering concessional resources, technical support, and risk-reducing instruments, especially in critical sectors.
Al-Mashat noted that institutional coordination, enhanced transparency, and strengthened partnerships with development partners are key to generating impactful projects that contribute to job creation, local development, and a broader economic transformation. She described development finance for the private sector as an investment in Egypt's future.
According to the report, Egypt has witnessed a marked evolution in its relationship with development partners, with a clear shift toward prioritizing the private sector.
In 2024, for the first time, development financing to the private sector exceeded that of the public sector, reaching over $4.2 billion.
From January to May 2025, the private sector secured an additional $1.14 billion in financing, underscoring sustained momentum and growing international confidence in Egypt's investment climate.
More than 30 bilateral and multilateral development partners have provided funding through a wide range of instruments tailored to private sector needs.
The European Bank for Reconstruction and Development (EBRD) led with 22% of total financing, followed by the European Investment Bank (EIB) at 21%, reflecting a strong European presence in financing infrastructure and private sector capacity-building.
Together, EBRD and EIB accounted for nearly $7.3 billion, approximately 47% of total development financing for the private sector since 2020.
The International Finance Corporation (IFC) ranked third, contributing 19%, reflecting a focus on small and medium-sized enterprises and direct investment.
The report also presents a comprehensive framework for empowering the private sector, focusing on improving the business environment, enhancing competitiveness, and building institutional capacity.
It highlights access to a diverse set of financial tools, ranging from concessional loans and equity investments to tailored technical assistance, as essential for long-term development impact.
The report identifies green transformation, digital economy, entrepreneurship, and inclusive growth as strategic pillars for the coming period.
It stresses the importance of aligning development financing with national priorities and ensuring adaptability to evolving private sector needs, in line with Egypt's Vision 2030.
© 2020-2023 Arab Finance For Information Technology. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info).
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