Egypt secures $15.6bln in concessional financing for private sector since 2020: El-Mashat
Egypt - Minister of Planning, Economic Development, and International Cooperation Rania El-Mashat announced during the 'Development Finance to Foster Private Sector-Led Growth & Jobs' conference that concessional development financing for Egypt's private sector reached $15.6bn between 2020 and May 2025.
This financing was provided through more than 30 bilateral and multilateral development partners, with banks and financial institutions accounting for 40% of the total.
El-Mashat emphasized that the conference reflects Egypt's strategic shift toward a private-sector-led economy based on competitiveness, partnerships, and sustainability. She highlighted the critical role of development finance in boosting private investment and job creation.
The government continues to implement a structural reform agenda focused on macroeconomic stability, enhanced competitiveness, a stronger investment climate, and advancing green transformation efforts.
El-Mashat noted that the annual global financing gap to achieve the Sustainable Development Goals (SDGs) is estimated at $4 trillion, according to the UN's 2024 data. However, private sector mobilization through development finance remains below $70bn, based on OECD divs—underscoring the urgent need to scale up such financing.
To help bridge this gap, the ministry launched a comprehensive economic diplomacy framework in 2020 to deepen cooperation with international financial institutions and expand the use of innovative financial tools targeting all segments of the private sector—including large corporations, SMEs, microenterprises, startups, and entrepreneurs.
In response to the need for clearer communication and coordination between development partners and the private sector, the ministry also introduced the 'Hafiz' platform. The platform provides over 90 services and lists more than 1,000 local and international opportunities, positioning itself as a key entry point for partnerships and technical support.
These combined efforts have facilitated development projects across multiple sectors, with total development financing exceeding $15.6bn since 2020. In addition, technical support projects valued at more than $200 million have delivered advisory services, technology transfer, and training to build private sector capacity and broaden market access.
One of the notable outcomes includes the acceleration of PPP project implementation—reducing preparation timelines from one year to just two months—thanks to secured funding for feasibility studies and the appointment of legal, technical, and financial consultants.
Banks and financial institutions have received over 40% of the total development finance since 2020, while renewable energy, electricity, and logistics sectors together accounted for more than 25%.
El-Mashat also announced that Egypt has been selected by the Climate Investment Funds (CIF) as one of only seven countries globally to benefit from its Green Industry Program, which will provide $1bn in concessional financing and technical support to drive green industrial investment.
Additionally, she introduced a new coordination mechanism for the European Fund for Sustainable Development Plus (EFSD+), which will offer project guarantees worth €1.8bn. These guarantees, provided through institutions such as the European Investment Bank (EIB), the EBRD, the German Development Bank (KfW), the IFC, and others, aim to attract greater private investment in sectors including renewable energy, food security, human capital, and infrastructure.
The minister further noted that Egypt is working to strengthen South-South cooperation and expand market access for Egyptian companies through concessional financing and joint initiatives with partner countries, reinforcing Egypt's emerging role as a regional development and investment hub in Africa.
She also revealed that preparations are underway to launch Egypt's national economic development narrative, in collaboration with the World Bank Group. This narrative will define key reform priorities to enhance exports, support local industries, and attract foreign direct investment, thereby contributing to long-term economic stability.
€1.8bn Investment Guarantee Mechanism Launched
During the conference, Egypt and the European Union unveiled a new €1.8bn Investment Guarantee Mechanism under the EFSD+ initiative.
Part of the EU's broader External Investment Plan, the EFSD+ platform seeks to enhance sustainable investment in partner countries, including Egypt. It promotes greater private sector participation by offering innovative financial tools such as guarantees, concessional loans, and blended finance instruments to reduce investment risks and encourage engagement in key sectors like water, energy, agriculture, climate, infrastructure, and digitalization.
El-Mashat stated that the mechanism represents a shared commitment between Egypt and the EU to deepen private sector involvement in development. Companies will be able to access investment guarantees through the 'Hafiz' platform, which also offers concessional financing via partner banks, EU-backed risk guarantees, technical assistance, and opportunities in infrastructure and green projects supported by the EU.
The guarantee mechanism is supported by key international financial institutions, including the EIB, EBRD, KfW, IFC, and Italy's CDP. These partnerships aim to increase concessional development financing to Egypt's private sector across strategic sectors.
Stefano Sannino, Director-General for the Southern Neighbourhood and Middle East at the European Commission, described the initiative as a strategic platform to unlock diverse financial solutions and catalyze investment in Egypt. Under the 'Team Europe' framework, the EU aims to position itself as a long-term economic partner in Egypt's sustainable development. The mechanism is expected to mobilize up to €5bn in public and private investments between 2024 and 2027.
$4.2bn in Development Finance Mobilized in 2024
According to the Ministry's Development Financing for Private Sector Empowerment report, Egypt's private sector received over $4.2bn in development financing in 2024—surpassing, for the first time, financing directed to the public sector. This signals a growing shift among development partners toward empowering the private sector as a key driver of the SDGs.
From January to May 2025, financing reached $1.14bn, reinforcing expectations of sustained momentum. In total, development financing to the private sector between 2020 and May 2025 amounted to approximately $15.6bn, supported by more than 30 development partners.
The European Bank for Reconstruction and Development (EBRD) led all contributors, accounting for 22% of the total. The European Investment Bank (EIB) followed with 21%, reflecting the significant role of European development partners—both bilateral and multilateral—in financing infrastructure and supporting private sector growth in Egypt. Together, European partners have provided approximately $7.3bn, or 47% of the total. The IFC ranked third with a 19% share, underscoring its focus on supporting SMEs and fostering direct investment.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Dubai Eye
4 hours ago
- Dubai Eye
UN's Guterres urges 'give peace a chance' in Israel-Iran conflict
UN Secretary-General Antonio Guterres warned on Friday that expansion of the Israel-Iran conflict could "ignite a fire no one can control" and called on both sides and potential parties to the conflict to give peace a chance. Speaking at the United Nations Security Council session, Guterres said there were "moments when the directions taken will shape not just the fate of nations, but potentially our collective future". "This is such a moment," he said. He said expansion of the conflict would "ignite a fire that no one can control" and added: "We must not let that happen." "To the parties to the conflict, the potential parties to the conflict, and to the Security Council as the representative of the international community, I have a simple and clear message: give peace a chance," Guterres said. The Security Council session took place as European foreign ministers met their Iranian counterpart on Friday hoping to test Tehran's readiness to negotiate a new nuclear deal despite there being scant prospect of Israel ceasing its attacks soon. Israel has repeatedly bombed nuclear targets in Iran and Iran has fired missiles and drones at Israel as a week-old air war escalated with no sign yet of an exit strategy from either side. The White House said on Thursday US President Donald Trump would make a decision within the next two weeks whether to get involved on Israel's side. Iran said on Friday it would not discuss the future of its nuclear programme while under attack by Israel. Israel's UN ambassador, Danny Danon, said his country sought genuine efforts to dismantle Iran's nuclear capabilities from Friday's meeting between European and Iranian ministers, not just another round of talks "We have seen diplomatic talks for the last few decades, and look at the results," he told reporters. "If it is going to be like another session and debates, that's not going to work." Rafael Grossi, head of the International Atomic Energy Agency, outlined Israeli attacks on nuclear facilities at Natanz, Isfahan and Arak. He said the level of radioactivity outside Iran's Natanz site has remained unchanged and at normal levels, indicating no external radiological impact on the population or the environment there. However, he said that within the facility there was both radiological and chemical contamination. He said the IAEA was not aware of any damage at Iran's Fordow plant at this time. An attack on Iran's Bushehr plant would be most serious, he said: "It is an operating nuclear power plant and hosts thousands of kilogrammes of nuclear material." "I want to make it absolutely and completely clear: In the case of an attack on the Bushehr nuclear power plant, a direct hit would result in a very high release of radioactivity to the environment," Grossi said. "Similarly, a hit that disabled the only two lines supplying electrical power to the plant could cause its reactor's core to melt." He said any action against the Tehran nuclear research reactor will also have severe consequences, "potentially for large areas of the city of Tehran and its inhabitants." The US ambassador to the United Nations, Dorothy Camille Shea, said the United States "continues to stand with Israel and supports its actions against Iran's nuclear ambitions." "We can no longer ignore that Iran has all that it needs to achieve a nuclear weapon," she said. China and Russia demanded immediate de-escalation. Russia's UN ambassador, Vasily Nebenzya, said Israel's actions risked pulling third countries into the conflict and internationalization of the conflict must be avoided. He said targeting of what he called Iran's peaceful civilian nuclear facilities was "liable to plunge us into a hitherto unseen nuclear catastrophe."
Gulf Today
4 hours ago
- Gulf Today
Iran FM says ready to 'consider' diplomacy 'once the aggression is stopped'
Tehran is ready to "consider diplomacy" again only once Israel's "aggression is stopped," Iran's Foreign Minister Abbas Araghchi said following talks with his European counterparts on Iran's nuclear programme. "Iran is ready to consider diplomacy once again and once the aggression is stopped and the aggressor is held accountable for the crimes committed... We support the continuation of discussion with" Britain, France, Germany and the European Union "and express our readiness to meet again in the near future," Araghchi told reporters following the talks at a Geneva hotel. Iran said on Friday its air defences had been activated in Bushehr, without elaborating. Israel says it is determined to destroy Iran's nuclear capabilities but that it wants to avoid any nuclear disaster. UN Secretary-General Antonio Guterres, also speaking at the world body's Security Council, said the Iran-Israel conflict could "ignite a fire no one can control" and called on all parties to "give peace a chance." Russia and China demanded immediate de-escalation. URANIUM ENRICHMENT A senior Iranian official told Reuters Iran was ready to discuss limitations on uranium enrichment but that any proposal for zero enrichment — not being able to enrich uranium at all — would be rejected, "especially now under Israel's strikes." Israel's Foreign Minister Saar, speaking in Haifa, said he was very sceptical about Iran's intentions. "We know from the record of IRan they are not negotiating honestly," he said. Agence France-Presse
Middle East Eye
5 hours ago
- Middle East Eye
China said Israel should 'cease fire' as soon as possible in conflict with Iran
Chinese representative to the UN Fu Cong said on Friday that Israel should 'cease fire as soon as possible' to prevent the situation from escalating. Speaking at the UN Security Council earlier, Congo described Israel's attacks on Iran's nuclear facilities as a 'dangerous precedent' that could have 'catastrophic consequences'. The nuclear issue must be returned 'to the track of dialogue and negotiation', he said.
