Egypt, EU launch investment guarantee facility to empower private sector

Arab Finance: The Egyptian government and the European Union (EU) have officially launched the €1.8 billion Investment Guarantee Facility under the European Fund for Sustainable Development Plus (EFSD+), marking a major milestone in joint efforts to empower the private sector and promote sustainable investment in Egypt, as per a statement.
The announcement was made during the 'Development Finance to Foster Private Sector: Led Growth and Job' conference, organized by the Ministry of Planning, Economic Development, and International Cooperation under the patronage of Prime Minister Mostafa Madbouly.
The Investment Guarantee Facility is one of the provisions outlined in the political declaration issued during the Egypt-EU Summit in March 2024, co-chaired by President Abdel Fattah El-Sisi and European Commission President Ursula von der Leyen.
It aims to stimulate private investment through innovative financial instruments, including guarantees and blended finance, to reduce risk and increase investor confidence in strategic sectors such as water, energy, climate, infrastructure, agriculture, and digitalization.
Minister of Planning Rania Al-Mashat stated that the facility's launch reflects the shared commitment of Egypt and the EU to enabling the private sector to play a leading role in development.
She added that the mechanism is part of a broader strategy to attract both public and private capital through risk-sharing instruments.
These tools are now accessible through the ministry's Hafiz platform for financial and technical support to the private sector.
The facility allows private companies to access concessional financing from development partners, benefit from EU-backed guarantees to lower investment risks, take part in EU-supported infrastructure and green transformation projects, and receive technical support for project design and feasibility.
The guarantees will be made available to a range of international financial institutions, including the European Investment Bank (EIB), the European Bank for Reconstruction and Development (EBRD), the German Development Bank (KfW), the International Finance Corporation (IFC), the Italian CDP, and others.
This is expected to drive additional concessional financing into Egypt's private sector and mobilize investments in renewable energy, food security, infrastructure, and human capital.
The facility is expected to help mobilize up to €5 billion in public and private investment in Egypt between 2024 and 2027, advancing the goals of sustainable development and economic transformation.
© 2020-2023 Arab Finance For Information Technology. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info).

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