Ministry of Planning, Economic Development, and International Cooperation Highlights Key Developments in Strategic Partnership with the European Bank for Reconstruction and Development (EBRD)

In light of the visit by Mrs. Odile Renaud-Basso, President of the European Bank for Reconstruction and Development (EBRD), to the Arab Republic of Egypt, the Ministry of Planning, Economic Development, and International Cooperation underscores the evolution of its strategic partnership with the EBRD and the bank’s critical role in supporting Egypt’s comprehensive development agenda. This long-standing relationship has proven instrumental in mobilizing development financing, stimulating private sector growth, and enhancing economic resilience through inclusive and sustainable investments.

 

Egypt’s relationship with the EBRD dates back to the bank’s establishment in 1991, with Egypt being a founding member. In 2010, Egypt formally applied to become a country of operations within the EBRD’s framework. In May 2011, the EBRD expanded its geographical mandate to include countries of the Southern and Eastern Mediterranean (SEMED) region, encompassing Egypt, Morocco, Tunisia, and Jordan. This expansion paved the way for Egypt to become a recipient country of EBRD operations, and the bank began investing in the SEMED region in 2012. To strengthen its presence and streamline its operations in Egypt, the EBRD inaugurated a regional office in Cairo in November 2014.

 

In March 2015, on the sidelines of the Egypt Economic Development Conference in Sharm El-Sheikh, Egypt and the EBRD signed a Joint Declaration of Intent, setting the stage for Egypt’s transition to full country-of-operations status. By October 2015, following the successful implementation of a comprehensive roadmap that included structural and economic reforms, Egypt officially became a full-fledged country of operations under the EBRD umbrella.

 

Since the beginning of its operations in Egypt, the EBRD has invested a total of €13.8 billion across 194 projects, positioning itself as one of the largest multilateral development banks supporting the Egyptian private sector. Over 86% of the bank’s portfolio in Egypt is directed towards private sector initiatives, reflecting the government’s commitment to empowering local and international private enterprises as key drivers of economic growth and job creation. The bank’s investments in Egypt are distributed across several critical sectors, with 61% allocated to financial institutions, 23% to sustainable infrastructure, and 16% to corporate financing.

 

The EBRD’s strategy in Egypt aims to enhance the investment climate for the private sector, with a special focus on the development of micro, small, and medium-sized enterprises (MSMEs), improving agricultural trade systems to strengthen food security, and modernizing the financial sector to ensure it serves as an effective catalyst for economic expansion. The bank also plays a vital role in supporting Egypt’s energy transition through investments in renewable energy and energy efficiency initiatives. Moreover, it is actively engaged in promoting private sector involvement in the development of transport infrastructure and other essential public services, contributing to the broader goals of urban development and improved living conditions for citizens.

 

In February 2024, Egypt and the EBRD adopted a renewed Country Strategy, reinforcing their shared commitment to advancing Egypt’s Vision 2030 and the Government Action Program. The new strategy focuses on three primary pillars: first, supporting the government’s efforts to achieve inclusive and sustainable economic growth; second, accelerating the green transition and promoting environmental sustainability; and third, enhancing Egypt’s global competitiveness through increased private sector participation and productivity growth.

 

As a result of sustained structural and economic reforms undertaken by the Egyptian government in recent years, EBRD investments in Egypt have continued to grow, reflecting increased international confidence in the country’s development trajectory. In 2024, Egypt ranked as the EBRD’s largest country of operations in the SEMED region for the seventh consecutive year. Globally, Egypt was the third largest recipient of EBRD investments among all member countries, underscoring the impact of Egypt’s proactive economic diplomacy and its ability to mobilize financing for development.

 

During 2024 alone, the EBRD invested approximately €1.5 billion in Egypt through 26 projects, with 98% of these investments channeled to the private sector. These investments have significantly contributed to strengthening Egypt’s economic base and supporting the expansion of key sectors aligned with national priorities.

 

A particularly notable area of collaboration is the energy pillar of Egypt’s national platform for the NWFE Program (Nexus of Water, Food and Energy). Under this flagship initiative, launched to consolidate international efforts and investments in climate-aligned sectors, the Ministry of Planning, Economic Development, and International Cooperation has worked closely with the EBRD to scale up renewable energy investments. The NWFE program reflects Egypt’s commitment to increasing the share of renewable energy in its energy mix to 42% by 2030, aligning with global climate goals and Egypt’s National Climate Change Strategy.

 

As Egypt’s lead development partner for the energy pillar of NWFE, the EBRD has played an indispensable role, in collaboration with other development partners, in mobilizing approximately $3.9 billion in concessional financing since the platform’s inception. These funds have been instrumental in unlocking private sector investment for renewable energy projects with a combined capacity of 4.2 gigawatts, significantly advancing Egypt’s green energy transition.

 

Beyond financing, the EBRD has worked in partnership with the Ministry of Electricity and Renewable Energy to provide technical assistance and concessional loans aimed at strengthening the national electricity grid. These interventions are designed to improve energy efficiency, enhance the capacity of transmission and distribution networks, and ensure the integration of renewable sources into Egypt’s energy system, thereby supporting energy security and sustainability.

 

In response to Egypt’s efforts to address water scarcity, adapt to climate change, and enhance resilience to freshwater shortages, the EBRD has also engaged in strategic cooperation on desalination projects. In partnership with the International Finance Corporation (IFC) and Egypt’s Sovereign Fund, the EBRD is providing advisory support for the structuring and implementation of water desalination projects under a public-private partnership (PPP) framework. These initiatives aim to strengthen Egypt’s water security, reduce vulnerability to climate-induced water stress, and enable sustainable economic development in water-scarce regions.

 

Through its multidimensional partnership with Egypt, the EBRD continues to be a key partner in supporting the implementation of the country’s national development strategy, reinforcing its commitment to sustainable development, inclusive economic growth, and climate resilience. The Ministry of Planning, Economic Development, and International Cooperation affirms its dedication to further deepening this collaboration and harnessing development partnerships that contribute meaningfully to the realization of Egypt’s Vision 2030 and its long-term reform agenda.