AfDB to support private sector development program in Egypt

The African Development Bank (AfDB) will support the first phase of Egypt’s Private Sector Development and Economic Diversification Program.

This comes under a $131 million agreement with the Egyptian Government and is part of a broader effort to strengthen Egypt’s economy and improve the business environment.

This initiative aligns with the government’s strategy to enhance economic stability and sustainability and constitutes a continuation of collaboration with international partners to implement structural reforms.

A similar agreement, worth €1 billion, was sealed with the European Union as part of a macroeconomic support program. These efforts aim to stimulate private sector growth, implement reforms, and diversify the economy.

The Private Sector Development and Economic Diversification Program focuses on two key goals. The first is to boost private sector investment by improving the investment climate, fostering fair competition, and enhancing trade practices. The second is to encourage economic diversification and a shift toward a green economy by strengthening sectors like industry and agriculture and promoting sustainable practices.

To support these goals, the government has introduced reforms, including creating the Supreme Investment Council, amending the 2017 Investment Law to provide new incentives, removing tax exemptions for state-owned enterprises engaged in investment, and establishing the Egyptian Intellectual Property Office. These measures aim to attract both local and foreign investors and create a more business-friendly environment.

On the green economy front, the government has enacted laws to regulate unlicensed industrial facilities and allocated 26,000 square kilometers of state-owned land for renewable energy projects. These steps are designed to support Egypt’s transition to sustainable energy, promote environmentally friendly practices, and strengthen its position as a leader in renewable energy initiatives.