The announcement was made during a high-level conference titled Development Financing to Empower the Private Sector: Economic Growth and Employment, hosted by the Ministry of Planning, Economic Development, and International Cooperation (MOPEDIC).
Held under the auspices of Prime Minister Mostafa Madbouly and inaugurated by Minister Rania Al-Mashat, the conference brought together international financial institutions, development banks, and private sector leaders to explore concessional financing tools and investment strategies.
$15.6 billion since 2020
In her keynote speech, Al-Mashat said Egypt has secured $15.6 billion in development financing for private sector initiatives since 2020. These include credit lines, project finance, and direct investments in energy, transport, agriculture, manufacturing, and tech.
The financing was mobilized in partnership 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 said. “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.”
Egypt is engaged in an $8 billion loan programme with the International Monetary Fund (IMF). One key pillar is boosting the private sector's role in the economy.
The fifth review of the programme is still underway.
Sector breakdown
Of the $15.6 billion:
- $6.2 billion went to commercial banks and microfinance institutions to expand SME lending
- $3.5 billion supported renewable energy and infrastructure, including solar, wind, and logistics
- $2.8 billion was invested in industry and manufacturing
- The remainder supported agriculture, fintech, digital innovation, and trade facilitation
Over $200 million in technical assistance was also mobilized for capacity-building, export readiness, and digital transformation.
Financing mechanisms
The financing strategy operates under Egypt’s 2020 Economic Diplomacy Framework, which focuses on:
- Blended finance to de-risk private investment
- Credit lines through domestic banks
- Guarantees and de-risking tools
- Public-private partnerships backed by development institutions
New agreements signed during the conference include:
- A partnership with the Federation of Egyptian Banks to channel concessional loans toward SMEs and innovation
- A Green Industry Initiative with the EIB for sustainable manufacturing
- Renewable energy projects under the Nexus of Water, Food, and Energy (NWFE) initiative, executed via blended finance
- A €1.8 billion guarantee package under the EFSD+ mechanism with the European Commission and multilateral banks
Regional leadership
Al-Mashat said Egypt accounts for over 20 percent of private-sector development financing mobilized in Africa and the Middle East. Globally, only $70 billion has been directed toward private firms via development finance.
She also cited Egypt’s role in the CIF Green Industry Platform, through which it could receive up to $1 billion in climate-aligned concessional financing.
The Ministry launched Hafiz, a digital platform aggregating over 1,000 financing and technical support opportunities to expand access to funding. Hafiz will connect development funders with SMEs and startups across Egypt.
“The private sector no longer has to struggle to find financing; we are bringing financing to them,” said Al-Mashat. “With Hafiz, every entrepreneur, manufacturer, and service provider can explore real funding options in one place.”
Long-term vision
The conference marked the early rollout of Egypt’s National Narrative for Economic Development, developed with the World Bank and United Nations (UN) agencies.
The roadmap prioritizes private sector investment, export growth, industrial upgrading, and digitalization.
Egypt also plans to expand 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 financing model at the upcoming UN Financing for Development conference (FfD4) in Seville, showcasing its blended finance architecture and de-risking tools.
“The Egyptian model shows what’s possible when governments take a proactive role in de-risking and enabling the private sector,” said Al-Mashat. “This is not just about money; it’s about creating the right financial infrastructure for the private sector to thrive.”
Short link: