The Ministry of Planning, Economic Development and International Cooperation and the AfDB Organize a Meeting with the Business Community and the Private Sector

Within the Framework of the BRIDGE Series of Meetings to Enhance Partnership with the Private Sector

 

The Ministry of Planning, Economic Development and International Cooperation and the AfDB Organize a Meeting with the Business Community and the Private Sector

Dr. Rania Al-Mashat:$4.2 Billion Directed to the Private Sector, Exceeding Public Sector Funding for the First Time

The AfDB Intends to Direct Investments of $300 Million to the Private Sector in Egypt During 2025

 

H.E. Dr. Rania A. Al-Mashat, Minister of Planning, Economic Development and International Cooperation, affirmed that the continuous meetings with the private sector translate Egypt's vision into practical and innovative partnerships. She pointed out that the economic transformation Egypt is witnessing places the private sector at the heart of high-quality sustainable growth.

 

H.E. Minister Al-Mashat added that within the framework of the government's action plan for the period 2024-2027, structural reforms are being implemented to unleash the potential of the private sector by simplifying regulatory frameworks, enhancing investor confidence, and implementing the State Ownership Policy Document, which aims to clarify the state's economic role and provide greater space for private sector growth.

 

This came during the speech of the Minister of Planning, Economic Development and International Cooperation at the third meeting of the BRIDGE series, which aimed to enhance dialogue with the business community and private sector companies and introduce companies to the financing tools provided by the African Development Bank (AfDB). This is in light of the state's vision to achieve economic growth led by the local and foreign private sector, and with the presence of representatives of business associations and a number of private sector leaders.

 

H.E. Dr. Al-Mashat pointed out the pivotal role of the Ministry of Planning, Economic Development and International Cooperation in consolidating fiscal discipline by setting a ceiling for public investments at one trillion Egyptian pounds, ensuring macroeconomic stability and allowing space for the structural reforms the state has committed to.

 

H.E. Minister Al-Mashat noted that these efforts have yielded tangible results, as private sector investments now represent 63% in the first quarter of the current fiscal year, compared to only 27% three years ago, and the state aims to continuously increase this percentage in the coming period.

 

H.E. Dr. Al-Mashat also highlighted the government's endeavor to increase foreign direct investment by issuing numerous financial incentives and completing structural reforms that stimulate the increase of these investments and shifting towards a focus on tradable and commercial sectors.

 

H.E. Dr. Al-Mashat emphasized the importance of partnership with international financing institutions to stimulate investments and provide financing for the private sector, which has amounted to more than $14.5 billion since 2020. She noted that development financing directed to the private sector increased to $4.2 billion, exceeding public sector financing for the first time last year.

 

H.E. Minister Al-Mashat valued the partnership with the AfDB, which is a key partner in the "NWFE" platform and serves as the lead development partner in the water pillar. She referred to the second progress report of the platform, which shows how local private sector investments contribute to the development of infrastructure in line with Egypt's National Climate Change Strategy 2050 and Nationally Determined Contributions (NDCs). The Ministry also seeks to implement an initiative in cooperation with the AfDB to exchange experiences with African countries regarding the "NWFE" program.

 

H.E. Dr. Al-Mashat added that the AfDB intends to direct investments worth $300 million to the private sector in Egypt during 2025, focusing on financing small and medium-sized enterprises (SMEs) and large companies through project financing tools, corporate financing, and credit lines.

 

The Minister of Planning and Economic Development, International Cooperation continued that, in light of the current global challenges, ranging from climate change to the financing gap for achieving the SDGs, estimated at $4 trillion annually, to escalating geopolitical risks and trade tensions, it has become more necessary than ever to adopt innovative and courageous partnerships.

 

H.E. Dr. Al-Mashat reiterated that effective cooperation does not stop at financing alone, but also requires providing reliable and easily accessible information. She pointed to the launch of the Hub for Advisory, Finance and Investment for Enterprises "HAFIZ" platform, which represents a unified digital platform that facilitates the private sector's access to financing tools, technical support, tenders, and training programs through partnerships with development institutions such as the African Development Bank.

 

H.E. Minister Al-Mashat outlined that the platform includes more than 90 financial and advisory services, in addition to hundreds of tenders, which contributes to facilitating companies' entry into African markets and supporting expansion and regional integration.

 

H.E. Dr. Al-Mashat concluded her speech by emphasizing that Africa's development is closely linked to manufacturing and economic integration. She added that the AfDB's five priorities – "Light up Africa," "Feed Africa," "Industrialize Africa," "Integrate Africa," and "Improve the quality of life for the people of Africa" – align with Egypt's development vision.

 

H.E. Dr. Al-Mashat also confirmed that Egyptian companies enjoy competitive advantages in sectors such as pharmaceuticals, smart agriculture, and renewable energy, which qualify them for growth in the African continent. She added that enhancing logistics, information technology, and communication infrastructure would remove trade barriers and boost intra-African trade.

 

The Ministry of Planning, Economic Development and International Cooperation had launched the BRIDGE series of meetings, which aims to enhance the private sector's contribution to economic development, review investment opportunities in priority sectors in Egypt, and promote integration between the state's investment plans and the programs implemented by development partners, by encouraging partnerships between the public and private sectors, enhancing opportunities for blended finance, development finance, and grants for the private sector, and formulating opportunities in the field of investment guarantees and corporate social responsibility.