Egypt secures $15.6bn in concessional financing for private sector since 2020: El-Mashat
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 figures—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
Al-Ahram Weekly
4 hours ago
- Al-Ahram Weekly
Al-Azhar grand imam condemns Israel's aggression against Iran in Persian statement - Foreign Affairs
Ahmed El-Tayyeb, the Grand Imam of Al-Azhar Al-Sharif, the world's largest Sunni Islamic institution, has issued a forceful condemnation of Israel's ongoing actions against Iran, delivering his message not only in Arabic and English but, for the first time, in Persian on social media. 'I strongly condemn the ongoing aggression by the occupying entity against the Islamic Republic of Iran, and the systematic attacks and continued recklessness committed by this usurping aggressor and its backers,' he wrote on his social media accounts. El-Tayyeb warned that such actions risk "dragging the region to the brink of explosion and igniting a full-scale war, from which only arms dealers and profiteers of bloodshed would benefit." He also slammed the international community's response, saying its "silence in the face of this tyranny, and its failure to put an end to it, amounts to complicity in the crime." He added that such inaction "yields nothing but a growing threat to global security." "War cannot create peace," he concluded. His remarks come as the aerial confrontation between Israel and Iran enters its eighth consecutive day, with destruction and casualties mounting on both sides. Meanwhile, investigative reports—such as Seymour Hersh's recent piece detailing an alleged US-backed 'all-out bombing campaign' against Iran, including plans to strike the heavily fortified Fordow nuclear facility—suggest a broader escalation. Follow us on: Facebook Instagram Whatsapp Short link:
Al-Ahram Weekly
5 hours ago
- Al-Ahram Weekly
🔴 LIVE UPDATES: Egypt's Al-Azhar Grand Imam condemns Israeli 'rampage' in unprecedented Persian tweet - Region
Ahram Online provides live coverage of the unfolding military confrontation between Israel and Iran as the two sides waged deadly strikes against one another for the eighth day in a row. Related Trump says will decide whether to attack Iran 'within two weeks' - as it happened Israel expands assassination policy with threat to target Khamenei Israeli army says struck inactive nuclear reactor in Iran's Arak The face-off between Israel and Iran has continued to intensify overnight and into this morning. Overnight, the Israeli military reported carrying out dozens of strikes on military targets across Iran, including a significant attack on the Organization of Defensive Innovation and Research (SPND) headquarters in Tehran, which Israel claims is involved in Iran's nuclear weapons development project. Other targets included missile production sites in Tehran and the northern city of Rasht. The International Atomic Energy Agency (IAEA) also confirmed that Israel's rockets had damaged Iran's Khondab Heavy Water Production Plant. In retaliation, Iran launched fresh barrages of missiles towards Israel. These missiles struck southern Israel, particularly the city of Beersheba for the second consecutive day, causing damage to residential buildings, including a six-story structure. Sirens were activated across southern Israel as missiles were detected, and while most were reportedly intercepted, some impacted areas. Casualty figures remain high, with an Iranian human rights group stating that Israeli strikes have now killed at least 657 people and wounded over 2,000 in Iran since the conflict began. Iran's retaliatory strikes have resulted in 24 deaths in Israel. Diplomatic efforts are underway, with the Iranian Foreign Minister expected to meet with top European diplomats in Geneva today, although Iran continues to reject direct negotiations with the US as long as Israeli attacks persist. Concerns are also rising regarding potential cyberattacks, with reports of Iranian hackers targeting Israeli home security cameras. 19:00 Ahmed El-Tayeb, the Grand Imam of Al-Azhar, issued a forceful condemnation of Israel's ongoing actions against Iran. He notably delivered his message not only in Arabic and English but, for the first time, in Persian on social media. This unprecedented outreach directly targets Iranian audiences as tensions escalate, signaling a significant pan-Islamic appeal from Sunni Islam's highest seat of learning. In his tweet, El-Tayeb stated, "I strongly condemn the ongoing aggression by the occupying entity against the Islamic Republic of Iran, and the systematic attacks and continued recklessness committed by this usurping aggressor and its backers, acts that risk dragging the region to the brink of explosion and igniting a full-scale war, from which only arms dealers and profiteers of bloodshed would benefit." El-Tayeb further criticized the international community's inaction, arguing that "The international community's silence in the face of this tyranny, and its failure to put an end to it, amounts to complicity in the crime. Such inaction yields nothing but a growing threat to global security. War cannot create peace!" 18:00 Iran's Revolutionary Guard said it targeted Israeli Channel 14's field broadcasting headquarters in Haifa on Friday with Sejil-3 long-range missiles, describing the strike as part of a wider operation involving 'long-range and very heavy missiles.' According to Nour News, which is affiliated with Iran's Supreme National Security Council, the strike formed part of 'Wave 17' of Operation True Promise 3. The news outlet said the attack followed a prior warning issued by the Guard. 17:00 Turkish President Recep Tayyip Erdoğan warned that the escalating conflict between Iran and Israel is nearing 'the point of no return', as the United States weighs the possibility of direct military involvement. 'Unfortunately, the genocide in Gaza and the conflict with Iran are quickly reaching the point of no return. This madness must end as soon as possible,' he said, according to AFP. Erdoğan cautioned that the consequences of the war could extend far beyond the Middle East, affecting Europe and Asia 'for many years'. He made the comments during an Organisation of Islamic Cooperation (OIC) youth forum in Istanbul, ahead of a meeting of OIC foreign ministers scheduled for the weekend. In a separate phone call with German Chancellor Friedrich Merz, Erdoğan warned the war could trigger a surge in migration and the risk of nuclear contamination. "The spiral of violence triggered by Israel's attacks could harm the region and Europe in terms of migration and the possibility of nuclear leakage," he said, adding that the conflict had "raised the threat to regional security to the highest level". 16:30 Qatar held crisis talks with energy firms this week after Israeli strikes hit Iran's South Pars gas field, which it shares with Qatar, a regional diplomat and an industry source told Reuters. The South Pars/North Dome field, jointly owned by the two countries, is the world's largest known natural gas reserve. Iranian media reported a 'massive explosion' and fire on Saturday following an Israeli drone strike on one of the South Pars facilities. Qatar urged companies to raise the alarm with US, UK and European governments over mounting risks to global gas supplies, the source said. 16:00 Iran fired dozens of missiles at Israel, triggering air raid sirens across the north and south, according to Israel's Home Front Command. Al Jazeera initially reported that the salvo involved around 30 projectiles. Explosions were reported in Tel Aviv, Jerusalem and Haifa. Channel 12 confirmed a direct hit in Haifa that caused significant damage and injured 21 people, some seriously. Army radio cited strikes at multiple sites, while Channel 7 later said around 20 missiles were involved. Iran's Nour News said the Islamic Revolutionary Guard Corps (IRGC) targeted Channel 14's field broadcast centre in Haifa with Sejil-3 long-range missiles after a prior warning. The IRGC called the barrage 'Wave 17' of Operation True Promise 3, describing it as a coordinated strike involving 'long-range and very heavy missiles'. Iran's Supreme Leader Ayatollah Ali Khamenei said: 'The Zionist enemy is now receiving its punishment.' The attack marks one of the largest direct missile strikes by Iran since the war began on 13 June. The Israeli army later lifted nationwide shelter orders and confirmed impacts in Haifa, as well as central and southern regions. Earlier, Israeli forces said their air force was conducting renewed strikes on targets in western and central Iran. 15:15 Iran will not accept a demand for zero uranium enrichment, a senior Iranian official told Reuters, calling it unacceptable while Israeli strikes continue. However, the official said Tehran was open to negotiating limits on enrichment levels, provided its right to peaceful nuclear development is recognised. The remarks come ahead of talks in Geneva with the UK, France, and Germany, where efforts are underway to restore diplomatic engagement over Iran's nuclear programme. 14:45 Veteran investigative journalist Seymour Hersh warned that the United States is preparing for heavy bombing of Iran, possibly as early as this weekend, citing long-standing Israeli and American sources. Hersh said the Trump administration is fully backing Israel's campaign to dismantle Iran's nuclear programme, while hoping for the collapse of the government in Tehran. In a Substack post published Thursday, titled 'What I Have Been Told Is Coming in Iran – The Initial Battle Plan for a New War,' Hersh wrote: 'It will entail heavy American bombing,' based on information confirmed by a senior US official. The official reportedly said the situation would remain 'under control' if Iran's Supreme Leader Ayatollah Ali Khamenei 'departs.' 'Just how that might happen, short of his assassination, is not known,' Hersh added. He criticised the lack of a coherent US strategy: 'There has been a great deal of talk about American firepower and targets inside Iran, but little practical thinking… about how to remove a revered religious leader with an enormous following.' Hersh also warned of wider consequences: 'The most important unanswered question… will be the response of the world, including that of Vladimir Putin, the Russian president who has been an ally of Iran's leaders.' On continued US support for Israel, Hersh wrote: 'The United States remains Israel's most important ally, although many here and around the world abhor Israel's continuing murderous war in Gaza.' 14:30 Brent crude fell over 2 percent, dragging energy stocks lower, as fears of imminent US strikes on Iran eased. European markets rebounded, while Asian indices closed mixed and the dollar slipped. The shift followed President Donald Trump's comments that he would delay a decision on joining Israeli attacks for up to two weeks. His remarks came ahead of talks in Geneva between Iranian and European diplomats. 'Brent crude has dropped... as traders price out the worst-case scenario for geopolitics,' said Kathleen Brooks of trading firm XTB. Earlier concerns that the conflict could disrupt oil supplies had driven prices higher and global equities lower. 'While the immediate prospect of a US intervention may have diminished, it remains a live issue for markets,' said Dan Coatsworth of investment platform AJ Bell. The main US oil benchmark, West Texas Intermediate (WTI), edged up on low post-holiday trading and a drop in US crude stockpiles. Markets are also watching Trump's trade war, as a 90-day pause on new tariffs nears its end. 'Until then... headlines could have an outsized impact,' said David Sekera of Morningstar. 14:00 Russia warned against any attempt to assassinate Iran's supreme leader, saying it would be 'unacceptable' and risk triggering uncontrollable escalation, Sky News reported. Kremlin spokesperson Dmitry Peskov said Russia would react 'very negatively' if Ayatollah Ali Khamenei were killed, describing the situation as 'extremely tense and dangerous not only for the region but globally.' Speaking in Saint Petersburg, Peskov said regime change in Iran would 'open the Pandora's box' and warned that further escalation would only deepen the regional confrontation. He did not specify how Russia would respond, but said any such act would provoke a strong reaction 'from inside Iran.' 'It would lead to the birth of extremist moods inside Iran and those who are speaking about [killing Khamenei], they should keep it in mind. They will open the Pandora's box.' 13:30 European foreign ministers meeting Iranian Foreign Minister Abbas Araghchi in Geneva are expected to relay that the US remains open to direct talks, Reuters reported, citing diplomats. Two diplomats said Araghchi would be urged to send a 'clear signal' by accepting tough restrictions on Iran's nuclear programme. US Secretary of State Marco Rubio reportedly signalled willingness to engage directly with Tehran, though Washington has not formally confirmed this. CNN quoted a US official saying President Donald Trump supports European-led diplomacy aimed at reviving talks. The UK, France and Germany and the EU's foreign policy chief met in Geneva ahead of their meeting with Araghchi. The Swiss city hosted the early stages of talks that led to the 2015 nuclear deal between Iran and world powers. Trump withdrew the US from that agreement on 8 May 2018, reimposing sanctions and triggering the collapse of follow-up negotiations. An EU diplomat said: 'The Iranians can't sit down with the Americans whereas we can. We'll urge them to return to the table before the worst-case scenario.' Iran has repeatedly said it will not engage with the US while Israeli attacks continue. 'There is no room for negotiations with the US until Israeli aggression stops,' Araghchi said on state television. 13:15 Thousands of supporters of powerful Iraqi cleric Moqtada Sadr rallied in Baghdad and other cities against Israel's war with Iran, AFP correspondents said. "No to Israel! No to America!" chanted demonstrators gathered after Friday prayers in the Sadr City district of Baghdad, Moqtada Sadr's stronghold in the capital, holding umbrellas to shield themselves from Iraq's scorching summer sun. "It is an unjust war... Israel has no right" to hit Iran, said protester Abu Hussein. "Israel is not in it for the (Iranian) nuclear (program). What Israel and the Americans want is to dominate the Middle East," added the 54-year-old taxi driver. He said he hoped Iran would come out of the war victorious, and that Iraq should support its neighbour "with money, weapons and protests". In Iraq's southern city of Basra, around 2,000 people demonstrated after the prayers, according to an AFP correspondent. Cleric Qusai al-Assadi, 43, denounced Israel's use of Iraqi airspace to bomb Iran. "It is a violation of Iraq's sovereignty," he said, warning against "a third world war against Islam." Echoing the views of Sadr, Assadi said that Iraq should not be dragged into the conflict. Iraq has long attempted to balance ties between Iran and the US, and has only recently emerged from decades of instability following the 2003 US invasion. 13:00 Thousands of people joined a protest against Israel in the Iranian capital after weekly prayers, chanting slogans in support of their leaders, images on state television showed, AFP reported. "This is the Friday of the Iranian nation's solidarity and resistance across the country," the news anchor said. Footage showed protesters in Tehran holding up photographs of commanders killed since the start of the war with Israel, while others waved the flags of Iran and the Lebanese Shia group Hezbollah. "I will sacrifice my life for my leader," read a protester's banner, a reference to supreme leader Ayatollah Ali Khamenei. According to state television, protests took place in other cities around the country, including in Tabriz in northwestern Iran and Shiraz in the south. 12:45 French President Emmanuel Macron said European powers will present Iran with a 'comprehensive diplomatic and technical offer' to end the escalating conflict with Israel. Foreign Minister Jean-Noël Barrot is expected to meet Iranian counterpart Abbas Araghchi in Geneva later Friday, alongside UK and German officials. Macron said the proposal includes four points: full IAEA access and zero uranium enrichment; limits on ballistic capabilities; restrictions on financing regional proxies; and the release of foreign detainees. He warned that a nuclear-armed Iran poses an 'existential risk' to Israel, but criticised Israeli strikes on civilian and energy infrastructure, saying 'nothing justifies this'. He added that military action alone cannot eliminate Iran's nuclear programme. "No one seriously thinks that this risk (posed by the Iranian atomic drive) can be responded to only through the operations that are currently underway," he said. "There are facilities that are extremely well protected we do not know exactly where the uranium enriched to 60 percent is." 12:00 Several major US airlines have suspended flights to the Middle East, AP reported. United Airlines said it has indefinitely paused flights between Newark, New Jersey, and Dubai, United Arab Emirates. American Airlines announced it is suspending service between Philadelphia and Doha, Qatar, at least through Sunday, and will make 'additional adjustments as needed'. Both airlines said they are monitoring the situation and working to rebook affected passengers. Last week, Delta Air Lines suspended flights to Tel Aviv, where Ben Gurion Airport remains closed to regular scheduled passenger traffic. 11:30 Iranian Foreign Minister Abbas Araqchi ruled out any negotiations with the United States, calling it a 'partner to Israeli crime against Iran'. 'There is no room for negotiations with us until Israeli aggression stops,' Araqchi told Iranian state television, according to Reuters. 11:15 French Foreign Minister Jean-Noël Barrot, according to the Guardian, held talks with US Secretary of State Marco Rubio ahead of the planned Geneva meeting with his UK, German, and Iranian counterparts. A French diplomatic source said Rubio conveyed that the United States is 'ready for direct contact with the Iranians at any moment.' 11:00 Seven people were injured during Iran's missile attack on the southern Israeli city of Beersheba earlier this morning. According to a spokesperson for Soroka Medical Centre, quoted by The Jerusalem Post, the individuals sustained minor injuries while rushing to shelters during the barrage. Follow us on: Facebook Instagram Whatsapp Short link:
Egypt Independent
17 hours ago
- Egypt Independent
Egypt ranks 9th globally, 1st in Africa for FDI in 2024
Rania al-Mashat, Egypt's Minister of Planning and Economic Development and International Cooperation, announced the launch of the World Investment Report issued by the United Nations Conference on Trade and Development (UNCTAD). The report monitors key trends in global Foreign Direct Investment (FDI) in 2024 and highlights Egypt's position among the most attractive countries for investments, driven by the Egyptian government's reforms. In a statement to the Egyptian Cabinet, the Minister revealed that the report placed Egypt ninth globally and first in Africa among the most attractive countries for FDI during 2024, attracting $47 billion in investments. The Minister clarified that this marks a significant leap for Egypt from its 32nd global ranking in 2023, which recorded $10 billion in FDI. This reflects the government's prioritization of empowering the private sector and attracting investments. She also noted the positive growth rate in the third quarter of the current fiscal year, which exceeded expectations. Al-Mashat highlighted the report's positive focus on developments in Africa, particularly in Egypt. The report specifically spotlighted the Ras El Hekma deal as an innovative model comprising two components: direct investment and a debt-swap mechanism. She added that this model came at a crucial time and demonstrates the state's ability to utilize innovative tools to attract financing and investments, deploying them in line with its national priorities. She also referred to the UNCTAD Secretary-General's address, which emphasized the importance of mobilizing financing for the private sector. In this context, Egypt hosted a major conference earlier this week on development finance and enhancing the private sector's role in achieving growth and creating job opportunities. This conference also served as a genuine platform to embody the principle of cooperation between international financial institutions and national governments in supporting the investment and development agenda. Within this framework, she affirmed that over the past five years, Egypt has successfully mobilized more than $15.6 billion for the private sector. She underscored that the relationship between trade, investment, and development is an integrated and interconnected one, and that promoting private and foreign investments is considered one of the primary means to achieve comprehensive and sustainable growth.
