Ministry of Planning, Economic Development and International Cooperation Launches Report "Development Finance to Foster Private Sector-Led Growth & Jobs”

$15.6 billion in development financing from development partners for domestic and foreign private sectors from January 2020 to May 2025.

Over 30 bilateral and multilateral development partners provide direct and indirect financing mechanisms for the private sector in Egypt.

The European Bank for Reconstruction and Development (EBRD) leads private sector financing with 22%, followed by the European Investment Bank (EIB).

Report reviews direct and indirect mechanisms that benefited the private sector over 5 years.

 

 

The Ministry of Planning, Economic Development and International Cooperation launched the report "Development Finance to Foster Private Sector-Led Growth & Jobs” during a conference held by the Ministry under the patronage and in the presence of Prime Minister H.E. Dr. Mostafa Madbouly. The event saw participation from a number of ministers, development partners, the European Union in Egypt, international institutions, and private sector representatives. The conference aims to review the direct and indirect financing mechanisms provided by development partners to the local and foreign private sectors over the past five years.

 

H.E. Dr. Rania Al-Mashat, Minister of Planning, Economic Development and International Cooperation, emphasized that promoting private sector participation is no longer an option but a strategic necessity for creating a resilient economy, achieving sustainable economic growth, and increasing employment rates. In light of global financing challenges, development finance represents a vital tool to bridge the financing gap facing development efforts by providing development financing resources, technical expertise, and innovative mechanisms that contribute to reducing investment risks, especially in priority sectors.

 

H.E. Al-Mashat also affirmed that the state's continued development of institutional coordination mechanisms, enhanced transparency, and building effective partnerships with development partners will drive more qualitative projects that create job opportunities, contribute to localizing development, and achieve a comprehensive and sustainable economic transformation. Empowering the private sector through development finance is not only an investment in the economy but a direct investment in the future.

 

The report indicates that since 2020, the private sector has witnessed significant development in its relationships with multilateral and bilateral development partners, stemming from the state's commitment to advancing its role in development efforts as a key driver of inclusive growth, job creation, and achieving sustainable development goals. The development financing portfolio directed towards the private sector has seen remarkable growth in recent years, exceeding $4.2 billion in 2024, surpassing for the first time development financing directed towards the government sector. This reflects the increasing shift in the focus of development partners towards supporting private sector investments and enhancing its contribution to achieving sustainable development goals.

 

The report showed that during the period from January to May 2025, the volume of financing reached $1.14 billion, which reinforces expectations of this momentum continuing. The total financing provided to the private sector during the period from 2020 to May 2025 amounted to approximately $15.6 billion from more than 30 development partners, reflecting the growing international confidence in the Egyptian investment climate and the increasing role of the private sector in driving development.

 

Regarding international partners, the report highlighted that the number of bilateral and multilateral development partners supporting the Egyptian private sector since 2020 has exceeded 30 entities. This diversity is reflected in the qualitative variety of tools provided by these partners to the private sector and also reflects strong confidence in the stability of the Egyptian economy and its growth prospects.

 

The European Bank for Reconstruction and Development (EBRD) topped the list of development partners with a financing share representing 22% of total development financing, followed by the European Investment Bank (EIB) with an equivalent of 21%. This reflects the pivotal role of European development partners, both multilateral and bilateral, in financing infrastructure and supporting the capabilities of the private sector in Egypt, who together account for approximately 47% of the value of development financing directed to the private sector in Egypt since 2020, with a contribution equivalent to approximately $7.3 billion.

The International Finance Corporation (IFC) came in third place with approximately 19%, a clear indication of the trend towards supporting small and medium-sized enterprises and enhancing direct investment.

 

The report addressed ways to empower the private sector through an integrated system that includes improving the business environment, supporting its competitiveness, developing its institutional capabilities, in addition to facilitating its access to various financing tools, whether in the form of development financing, equity partnerships, or technical support tailored to the needs of each sector. The importance of these endeavors lies in not only increasing financing but also in enhancing the efficiency of use and promoting the developmental impact of projects, in line with Egypt's Vision 2030.

 

The report focused on the green transformation, digital economy, entrepreneurship, and inclusive growth as fundamental pillars for the next phase, consistent with the state's priorities. This is done by linking these pillars with international cooperation frameworks to ensure resources are directed towards areas that achieve long-term added value. This emphasizes the importance of formulating development financing strategies based on clear national priorities, characterized by flexibility and the ability to respond to the changing needs of the private sector.

To obtain the report, please use the following link: https://moic.gov.eg/ar/news/2291