The Egyptian government has signed an advisory services agreement with the International Finance Corporation (IFC), the World Bank's private sector arm, to expand private sector participation in the country's airport sector. The signing ceremony was held on Monday at the government headquarters in the New Administrative Capital and overseen by Prime Minister Mostafa Madbouly. The agreement was signed by Minister of Planning and Economic Development and International Cooperation, Rania Al-Mashat; Minister of Civil Aviation, Sameh El-Hefny; and IFC Vice President for Africa, Sergio Pimenta. Prime Minister Madbouly stated that the agreement builds on existing cooperation with the IFC to provide advisory services for the government's initial public offering (IPO) programme. Under the agreement, the IFC will provide advisory services to broaden private sector involvement in Egyptian airports. Madbouly stressed the government's commitment to supporting this partnership, which is expected to enhance services and increase the capacity of Egyptian airports. Madbouly added that the agreement is part of a broader partnership between the government and the IFC to leverage the organisation's expertise in attracting local and foreign private sector investment, providing technical support to national entities to improve the business environment, and strengthening public-private partnerships across various development areas. Al-Mashat, who also serves as Egypt's Governor at the World Bank Group, explained that the partnership with the IFC regarding Egyptian airports complements the collaboration initiated in June 2023 concerning the government's IPO programme. This aligns with the implementation of the State Ownership Policy document and the pursuit of private sector-led economic growth. She emphasised that the government prioritises restoring the role of the local and foreign private sector in leading economic development efforts through a national structural reform programme and expanding financing mechanisms to attract foreign direct investment. Al-Mashat noted that the government has taken steps to stabilise the macroeconomy, implement fiscal consolidation measures, and introduce structural reforms to stimulate the private sector and create a conducive investment climate for both local and foreign investors. El-Hefny stated that the agreement with the IFC aims to expand private sector participation in the Egyptian airport sector and implement a strategic plan to identify viable airport projects for partnership with the private sector. Pimenta said that strengthening Egypt's airport infrastructure through public-private partnerships will drive economic growth. "This programme will help attract global investors to build modern, highly efficient airports that strengthen Egypt's position as a global hub for travel and trade," he added.
