Since 2020, Egypt has mobilized $15.6 billion in development financing for private sector initiatives, spanning credit lines, project finance, and direct investments in sectors such as energy, transport, and technology. This funding was secured through partnerships with over 20 development institutions, including the International Finance Corporation (IFC), the European Investment Bank (EIB), the European Bank for Reconstruction and Development (EBRD), and the African Development Bank (AfDB).
“Redirecting development finance toward the private sector is no longer optional. It is the only path to sustained growth and job creation,” Al-Mashat emphasized. “Our goal is to shift from public-sector-led development to a model where private enterprises lead investment, innovation, and value creation—with international financing as their launchpad.”
Of the $15.6 billion, significant portions were allocated as follows: $6.2 billion to commercial banks and microfinance institutions for SME lending expansion, $3.5 billion for renewable energy and infrastructure projects, including solar, wind, and logistics and $2.8 billion invested in industry and manufacturing. Additionally, over $200 million was earmarked for technical assistance in areas like capacity-building and digital transformation.
Operating under Egypt’s 2020 Economic Diplomacy Framework, the financing strategy emphasizes: Blended finance to de-risk private investment, Credit lines through domestic banks, Guarantees and de-risking tools and Public-private partnerships backed by development institutions.
Key agreements from the conference include partnerships with the Federation of Egyptian Banks for concessional SME loans, a Green Industry Initiative with the EIB for sustainable manufacturing, and renewable energy projects under the Nexus of Water, Food, and Energy (NWFE) initiative.
Minister Al-Mashat highlighted Egypt’s significant role, accounting for over 20% of private-sector development financing in Africa and the Middle East. Globally, only $70 billion has been directed to private firms via development finance.
As part of its long-term vision, Egypt launched Hafiz, a digital platform offering over 1,000 financing and technical support opportunities to connect SMEs and startups with development funders. This initiative aims to streamline access to funding and empower entrepreneurs across the nation.
The conference marked the early rollout of Egypt’s National Narrative for Economic Development, developed with the World Bank and UN agencies. This roadmap emphasizes private sector investment, export growth, industrial upgrading, and digitalization.
Furthermore, Egypt plans to enhance private sector engagement across Africa, aligning with the African Continental Free Trade Area (AfCFTA). Joint economic committees are working to support Egyptian investment in East and West Africa, particularly in construction and logistics.
Egypt will present its innovative financing model at the upcoming UN Financing for Development conference in Seville. This model highlights the critical role of blended finance architecture and de-risking tools in fostering a thriving private sector.
“The Egyptian model shows what’s possible when governments take a proactive role in de-risking and enabling the private sector,” Al-Mashat remarked. “This is not just about money; it’s about creating the right financial infrastructure for the private sector to thrive.”
