Photo courtesy of Ministry of Investment and Foreign Trade
The proposed funds, to be developed in cooperation with the Sovereign Fund of Egypt (TSFE), would target sectors including industry, pharmaceuticals, and sports, with a focus on financing production expansion, increasing local manufacturing, and diversifying sources of growth.
The discussions form part of a broader government push to attract investment and shift a greater share of economic activity towards the private sector.
The EBRD has been a major investor in Egypt, committing a record 1.3 billion euros across 26 projects in 2025, with around 70 percent directed to private sector initiatives.
Since beginning operations in Egypt in 2012, the bank has financed 206 projects worth more than 13.5 billion euros, spanning renewable energy, transport, financial services, and infrastructure. Nearly two-thirds of that funding has gone to the private sector.
Alongside the proposed funds, Egypt and the EBRD are exploring additional financing mechanisms, including support for venture capital vehicles and the potential use of special purpose acquisition companies (SPACs) to help startups access capital markets.
Egypt’s startup ecosystem has expanded rapidly. Startups attracted $614 million in funding in 2025 through a mix of equity and debt, a 51 percent increase from the previous year, including $304 million raised across 69 venture capital deals.
The government has introduced a Startup Charter aimed at improving the legal and regulatory environment, with plans to support 5,000 startup companies, expand access to international markets, and generate up to 500,000 direct and indirect jobs.
Beyond financing, the talks also covered efforts to strengthen foreign trade using the EBRD’s data and analytical capabilities, including the application of artificial intelligence to identify trade patterns and risks and to develop monitoring systems for adverse trade practices.
Separately, the Ministry of Industry is compiling an economic database intended to improve market transparency and support investment planning, particularly for small and medium-sized enterprises (SMEs).
SMEs account for about 98 percent of Egypt’s private sector and remain central to the government’s strategy to boost competitiveness and expand economic participation.
The EBRD expects Egypt’s economy to grow by 5.3 percent in 2026, supported by easing inflation, improved foreign exchange liquidity, stronger private sector activity, and a recovery in tourism and exports.
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