More private investments in infrastructure are needed in Egypt to free up public funds for investments in education, health and social protection, the World Bank (WB) said in its latest report about Egypt on Tuesday.
The WB report, titled 'Egypt: Enabling private investment and commercial financing in infrastructure,' calls for a clear action policy that would enable more private investments in infrastructure in the country.
According to the report, this action plan would resolve "cross cutting barriers to private investments," and includes better management of land, transparency in government procurement, efficiency in state-owned enterprise and encouraging long term domestic financing.
"This needs to be complemented with developing projects for private investments with maximum economic impact, like the regional energy hub, logistics corridors, freight transport and agricultural transformation hubs," the WB said.
The WB report identifies sectors in infrastructure that have potential for private investments; transport, energy, water, sanitation and agriculture.
The report also quoted a G20 global infrastructure outlook that says Egypt will require $675 billion in investments over the next 20 years to meet its infrastructure needs.
According to the report, for Egypt to maintain its reform momentum and focus on investing in its citizens, it will need to broaden and deepen its reform agenda to other sectors.
"This would be part of a fundamental shift away from the state as a provider of employment and output to an enabler of private investment; with the economy driven by a dynamic private sector generating jobs for the youth," it said.