INTERVIEW - IFC committed to supporting Egypt transition to private-sector-led economy: Makhtar Diop - Economy

Ahram Online has exclusively interviewed Makhtar Diop, managing director of the International Finance Corporation (IFC), during his visit to Egypt to explore how the corporation is partnering with Egypt to drive investment, enhance connectivity, and unlock the full potential of key sectors, from aviation and tourism to renewable energy and MSMEs.
As Egypt charts a path toward greater economic resilience, the role of strategic partnerships and private sector engagement has never been more critical.
Asset monetization and infrastructure development are emerging as cornerstones of the country's transformation agenda, and global institutions are stepping in to support and guide this transition.
Since beginning operations in Egypt nearly 50 years ago, IFC has invested and mobilized almost $10 billion in investment projects, with an advisory portfolio amounting to $25 million in the country.
Diop's insights highlighted the pivotal reforms shaping Egypt's economic future and the opportunities they create locally and across the African continent.
Ahram Online: What were the key highlights of your meeting with the Egyptian president regarding the asset monetization programme?
Makhtar Diop: The meeting highlighted a crucial phase in Egypt's economic strategy, focusing on the asset monetization programme.
The president reiterated the government's commitment to this initiative, emphasizing its potential to invigorate the economy.
We discussed the proposal to begin with the monetization of 11 airports, a strategic move to optimize state assets. We plan to launch tenders for the first airport by the end of 2025, marking a significant step forward.
Our conversation underscored the benefits of a portfolio approach. This approach allows for the simultaneous management of multiple assets, thus minimizing the risks associated with dependence on a single transaction.
By successfully executing the first transaction, we aim to instill confidence in the investment community and illustrate the viability and robustness of the broader monetization programme amid fluctuating political and economic landscapes.
We also discussed how to deepen collaboration between Egypt and the African countries.
President El-Sisi emphasized the importance of African collaboration in addressing various challenges such as economic development, security, and climate change. His leadership aims to strengthen ties within the continent through initiatives that promote investment, trade, and partnerships among African nations.
AO: The IFC is assigned as the technical advisor to the Egyptian government for the planned offering of 11 airports. Could you please expand on this?
MD: Egypt's 11 airports play a vital role in the nation's connectivity, facilitating domestic and international travel and serving as critical gateways for tourism, trade, and investment.
The airports are strategically located to enhance access to major cities, archaeological sites, and scenic destinations, contributing to Egypt's economy, which heavily relies on tourism.
Additionally, improved airport facilities enable better cargo transportation, boosting trade activities.
The airports are essential for Egypt's thriving tourism sector, significantly contributing to the economy. They provide access to historically rich areas like Cairo, Luxor, and Aswan, as well as coastal destinations such as Sharm El-Sheikh and Hurghada.
By increasing flight availability and improving facilities, these airports can attract more international visitors, thereby enhancing economic revenue from tourism, creating jobs, and supporting local businesses.
Infrastructural improvements such as modernizing terminal facilities, expanding runways, and upgrading baggage handling systems are crucial for enhancing airport efficiency.
Investments in technology, like automated check-ins and advanced security measures, can streamline passenger processing.
Additionally, expanding capacity to accommodate more flights and passengers will help support the growth in air traffic expected as tourism rises.
IFC provides financing, technical expertise, and strategic guidance for airport development projects.
This includes mobilizing private sector investments through public-private partnerships (PPPs) that can leverage domestic and international resources.
The IFC can also assist in improving operational efficiencies and enhancing the overall passenger experience.
AO: How can upgrades to airports impact Egypt's economy?
MD: Upgrading airports can significantly impact Egypt's economy by fostering growth in tourism and trade, reducing travel time and costs, and improving logistics capabilities.
By attracting more international flights, Egypt can boost tourism revenues, create jobs in the hospitality and service sectors, and drive demand for local goods and services.
Enhanced air cargo capabilities can also improve the efficiency of exporting Egyptian products, strengthening the economy.
Strategic partnerships with international airport operators, airlines, and logistics companies can bring valuable expertise and operational efficiencies to airport development.
AO: How is the IFC planning to assist Egypt in transitioning from a state-driven economy to a private-sector-led model?
MD: The IFC is fully committed to supporting Egypt's critical transition from a state-driven economy to a private-sector-led one.
Our approach involves not only funding but also addressing bureaucratic hurdles that currently deter private investment.
In my meetings with government ministers, they told me that they have identified regulatory simplification as fundamental, which includes streamlining processes and cutting redundant fees and taxes – IFC is supportive of this.
Accordingly, we can help create a more business-friendly environment.
Collaborative engagements with key ministries, such as the Ministry of Investment and the Ministry of Public Business Sector, are pivotal as they identify state-owned enterprises (SOEs) that could be considered for monetization and strategize on enhancing the governance and operational efficiencies of those remaining under state control.
Our comprehensive framework aims to establish an enabling ecosystem that encourages private sector participation, thus driving sustainable economic growth and creating jobs for the Egyptian population.
AO: What sectors were identified for investment and growth during your discussions with the Egyptian president?
MD: During our discussions, several sectors emerged as high-potential areas for investment and growth.
Tourism: We emphasized the importance of diversifying tourism offerings beyond traditional models. Egypt can leverage its rich historical and cultural assets by developing cultural, health, and business tourism. Initiatives to enhance tourist experiences can sustain revenue even during global fluctuations.
We emphasized the importance of diversifying tourism offerings beyond traditional models. Egypt can leverage its rich historical and cultural assets by developing cultural, health, and business tourism. Initiatives to enhance tourist experiences can sustain revenue even during global fluctuations. Construction: Egyptian construction firms have significant potential to expand into other African markets, particularly as the continent faces a growing demand for infrastructure improvements. This would benefit local companies and strengthen regional ties.
Egyptian construction firms have significant potential to expand into other African markets, particularly as the continent faces a growing demand for infrastructure improvements. This would benefit local companies and strengthen regional ties. Agriculture: We explored strategies to revitalize the agricultural sector, tapping into Egypt's historical strengths, particularly in crops like cotton. Innovations and investments in modern agricultural techniques could significantly enhance productivity and sustainability.
We explored strategies to revitalize the agricultural sector, tapping into Egypt's historical strengths, particularly in crops like cotton. Innovations and investments in modern agricultural techniques could significantly enhance productivity and sustainability. Trade and Integration: The discussions also focused on the importance of African integration. By leveraging the African Free Trade Agreement, we can boost inter-African trade and reduce reliance on non-African markets, enhancing economic resilience and collaboration.
AO: What strategies are being proposed to enhance trade among African nations, and how does the IFC plan to support this?
MD: The IFC spearheads the African Trade Initiative, which aims to strengthen trade relationships across African nations.
Key strategies include enhancing the capacity of local banks to provide trade financing, thereby minimizing reliance on foreign banking systems, which can be a bottleneck for trade.
By facilitating direct banking relationships and providing innovative funding solutions, we can streamline the flow of goods and services across borders.
Additionally, we are focused on creating platforms for knowledge exchange and collaboration among businesses, fostering a cooperative environment that not only boosts trade volume but also enhances overall economic resilience across the continent.
AO: What potential does the tourism sector have for economic recovery in Egypt, and how does the IFC plan to engage with it?
MD: The tourism sector is poised to play a crucial role in Egypt's economic recovery, offering substantial potential for diversification and growth.
Egypt can tap into new visitor demographics by broadening its attractions to include cultural and health tourism and creating more sustainable revenue streams.
The IFC is actively engaging with tourism projects to upgrade infrastructure and implement sustainable practices, such as the EDGE Advanced Green Building Certification for the Grand Egyptian Museum.
These initiatives not only promote cultural tourism but also enhance Egypt's profile as a destination for health tourism, leveraging its high-quality medical services.
Our support is focused on developing frameworks that sustain long-term growth in tourism, benefiting both the economy and local communities.
AO: How does the IFC view the role of Egyptian companies in the context of broader African development?
MD: The IFC is keen to empower Egyptian firms to leverage their capabilities and expand their operations across the continent, particularly in the construction and infrastructure sectors.
By building capacity and instilling best practices, we can position Egyptian companies to engage successfully in pan-African projects.
This not only bolsters their growth prospects but also fosters regional collaboration and integration, ultimately advancing economic development across Africa.
By facilitating partnerships and knowledge transfer, the IFC aims to create a robust ecosystem where Egyptian enterprises can thrive and contribute to the collective growth and prosperity of the continent.
AO: How can the IFC help stimulate private sector engagement in renewable energy projects in Egypt?
MD: The IFC recognizes the significance of renewable energy in Egypt's quest for sustainable economic growth and energy independence.
By facilitating investments in solar and wind projects, which have vast potential given Egypt's geographical advantages, we aim to enhance energy resilience.
Our strategy includes conducting feasibility studies, mobilizing public-private partnerships, and providing technical assistance to attract private developers.
Moreover, we are working closely with the government to enhance regulatory frameworks and create incentives for private investments in renewables.
By fostering an investment-friendly environment and supporting innovative financing mechanisms, such as green bonds, we can stimulate substantial private sector engagement in renewable energy, contributing to job creation and reducing carbon footprints.
AO: What is the potential of the healthcare sector in Egypt, and how can the IFC contribute to its development?
MD: The healthcare sector in Egypt holds immense potential for growth, especially as demand for quality healthcare services expands.
The IFC plans to enhance collaboration with private healthcare providers to improve service delivery, accessibility, and affordability.
We support investments in health infrastructure, medical technology, and healthcare professionals' training, aiming to uplift the country's overall healthcare standards.
AO: What are the key aspects discussed during your meeting with the Egyptian minister of investment and external trade?
MD: The minister was very keen on IFC's plans to ramp up its equity portfolio in Egypt and worldwide.
He was also interested in hearing about our new guarantee offering through MIGA, the risk insurance arm of the World Bank Group. We plan to triple our guarantee level to $20 billion by 2030.
The discussions also touched upon scaling up efforts on local currency financing and increased mobilization.
Today, for each dollar IFC invests, we mobilize two from other investors. We aim to raise this ratio in the very near future.
AO: How does the IFC support Egypt's efforts in the Micro, Small, and Medium Enterprises (MSMEs) sector?
MD: The IFC supports Egypt's efforts in the MSME sector largely through banking solutions such as providing special credit lines.
Additionally, the IFC is now working with non-banking financial institutions to reach more MSMEs and provide easier access to finance, which is a new direction in their strategy.
Since 2020, IFC has committed more than $850 million to MSMEs in Egypt through both financial and non-financial banking institutions, including equity. It focused on those led by women, helping them build businesses that foster innovation and strengthen communities.
AO: If you have a message at the end of this interview, what would it be? And to whom would you send it?
MD: Now is an ideal time for reforms in Egypt. The world is looking at Egypt due to its stability and market trust.
Once reforms aimed at simplifying processes and creating a level playing field are implemented, investments are expected to pour in.
Follow us on:
Facebook
Instagram
Whatsapp
Short link:

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Daily News Egypt

3 hours ago

• Daily News Egypt

Minister of Public Enterprises heads to Angola for US–Africa Business Summit

Mohamed El-Shimy, Egypt's Minister of Public Enterprises Sector, has arrived in Luanda, Angola, to participate in the 17th edition of the US–Africa Business Summit, taking place from June 22 to 25. Egypt's participation in the high-level summit underscores its commitment to advancing economic partnerships across the African continent and with the United States. The event is attended by several African heads of state and government, ministers, senior US government officials, and top business executives from both regions. During his visit, Minister El-Shimy is scheduled to hold bilateral meetings with key government officials and representatives of leading international companies and institutions. These meetings aim to explore avenues for deeper economic cooperation and to promote investment opportunities in Egypt's public enterprise sector. Organized by the Corporate Council on Africa, the US–Africa Business Summit is one of the most prominent annual forums focused on strengthening US–Africa economic ties. Held alternately in Africa and the United States, the summit brings together CEOs, investors, and policymakers to foster dialogue and business development. The 2025 edition is being held under the theme 'Paths to Prosperity: A Shared Vision for US–Africa Partnership' and focuses on boosting trade volumes, enhancing investment flows, and promoting collaborative growth. Key sectors under discussion include infrastructure, healthcare, mining, energy, agriculture, and technology. Egypt's involvement in the summit reflects its broader strategy to deepen regional integration, attract foreign direct investment, and position itself as a central player in shaping Africa's economic future.

Middle East

3 hours ago

• Middle East

OPEN// PM says Egypt monitors regional developments, impact on domestic situation

CAIRO, June 22 (MENA) - Prime Minister Mostafa Madbouli said Sunday the government is closely monitoring regional events, evaluating their impacts on the domestic situation, particularly on the economic conditions. He noted that a crisis management committee has been formed to follow up on the consequences of these developments, in addition to the ongoing efforts by the ministerial economic group to assess the situation. The premier's remarks came during a meeting with members of the Macroeconomic Advisory Committee, where a number of scenarios, recommendations, and precautionary measures were reviewed to help mitigate risks arising from the current regional geopolitical context amid heightened tensions following US military strikes on Iran. Madbouli highlighted the importance of weighing all perspectives and proposals regarding how to deal with the intensifying regional events. Egypt's stockpile of essential goods is safe, he said, pointing out that an agreement has been reached with the banking sector to secure all necessary foreign currency needs for various industrial sectors and production requirements. The committee emphasized the importance of close coordination between the government and the Central Bank of Egypt (CBE) to maintain exchange rate stability and preserve currency flexibility, as part of the work of the Monetary and Fiscal Policy Coordination Committee. Also, it highlighted the need to accelerate structural reforms to attract more foreign direct investment, and to enhance digital export platforms, particularly targeting African and Gulf markets. (MENA) A I E/R E E

See - Sada Elbalad

4 hours ago

• See - Sada Elbalad

Sisi, Omani Sultan Discuss Efforts to Halt Escalation Btw Iran, Israel

Nada Mustafa President Abdel Fattah El-Sisi held a phone call today with Sultan Haitham bin Tariq Al Said, Sultan of Oman. The call focused on regional developments. President El-Sisi stressed the importance of halting the ongoing escalation between Israel and Iran, warning of the grave consequences of an expanding conflict in the region. He emphasized the need to return to the negotiating table to prevent further bloodshed and commended Oman's role in mediating between Iran and the United States. In this regard, Sisi highlighted the importance of reviving and reinforcing the diplomatic track to spare the region from the devastation of war. For his part, Sultan Haitham praised Egypt's efforts to de-escalate regional violence and affirmed Oman's commitment to joint action in this regard. Moreover, both leaders underlined the urgency of achieving a ceasefire in Gaza and ensuring the delivery of humanitarian aid to alleviate the severe crisis faced by its residents due to the Israeli aggression. They reaffirmed that the establishment of an independent Palestinian state is the fundamental guarantee for lasting stability in the Middle East. The call also reaffirmed the deep-rooted Egyptian-Omani relations, with both leaders expressing their keenness to strengthen cooperation across various fields in line with the historic ties between the two brotherly nations. read more Gold prices rise, 21 Karat at EGP 3685 NATO's Role in Israeli-Palestinian Conflict US Expresses 'Strong Opposition' to New Turkish Military Operation in Syria Shoukry Meets Director-General of FAO Lavrov: confrontation bet. nuclear powers must be avoided News Iran Summons French Ambassador over Foreign Minister Remarks News Aboul Gheit Condemns Israeli Escalation in West Bank News Greek PM: Athens Plays Key Role in Improving Energy Security in Region News One Person Injured in Explosion at Ukrainian Embassy in Madrid News China Launches Largest Ever Aircraft Carrier Sports Former Al Zamalek Player Ibrahim Shika Passes away after Long Battle with Cancer Lifestyle Get to Know 2025 Eid Al Adha Prayer Times in Egypt Business Fear & Greed Index Plummets to Lowest Level Ever Recorded amid Global Trade War Arts & Culture Zahi Hawass: Claims of Columns Beneath the Pyramid of Khafre Are Lies News Flights suspended at Port Sudan Airport after Drone Attacks Videos & Features Video: Trending Lifestyle TikToker Valeria Márquez Shot Dead during Live Stream News Shell Unveils Cost-Cutting, LNG Growth Plan Technology 50-Year Soviet Spacecraft 'Kosmos 482' Crashes into Indian Ocean Videos & Features Tragedy Overshadows MC Alger Championship Celebration: One Fan Dead, 11 Injured After Stadium Fall