The African Development Bank (AfDB) plans to channel $300 million into Egypt's private sector in 2025, with a focus on financing small and medium enterprises (SMEs), large companies, and providing credit lines, Egypt's planning minister said on Friday. Speaking at the third edition of the BRIDGE dialogue series, Minister Rania Al-Mashat said the investment aligns with the government's strategy to position the private sector at the core of sustainable and inclusive growth, as part of Egypt's 2024–2027 economic reform agenda. Egypt's ongoing engagement with the private sector is turning its economic vision into concrete partnerships, Minister Al-Mashat said in a statement. She added that reforms to cut red tape, bolster investor confidence, and implement the State Ownership Policy are opening more room for private-sector growth. According to the minister, private sector investment accounted for 63 per cent of Egypt's total investments in the first quarter of the current fiscal year, up from 27 per cent three years ago. The government aims to further boost this share while continuing to attract foreign direct investment through targeted incentives and policy reforms. Minister Al-Mashat also highlighted Egypt's collaboration with international development partners, noting that since 2020, more than $14.5 billion in financing has been mobilised for the private sector. In 2023, concessional financing to the private sector surpassed public sector funding for the first time, reaching $4.2 billion. The minister praised AfDB's role as a key partner in Egypt's flagship NWFE platform, particularly in leading its water pillar. A new initiative is also being developed to share Egypt's NWFE experience with other African nations, she said. As part of broader efforts to improve access to finance and support for businesses, the ministry recently launched Hafez, a digital platform offering more than 90 financial and advisory services, hundreds of tenders, and capacity-building tools aimed at facilitating private sector engagement and regional market expansion. Minister Al-Mashat concluded by emphasising the importance of deepening regional integration and leveraging Egypt's competitive advantages—particularly in pharmaceuticals, smart agriculture, and renewable energy—to strengthen intra-African trade and sustainable development. Attribution: Amwal Al Ghad English
