The European Bank for Reconstruction and Development (EBRD) is foremost among international financial institutions supporting Egypt's economic growth.
With €13.8 billion in financing and investments in the Egyptian private sector, the bank is considered the strongest European lever for achieving economic growth and job creation within a competitive economy.
Ahram Online (AO): What is the purpose of your current visit to Egypt, and what are the key topics under discussion?
Odile Renaud-Basso (ORB): This is my fourth visit to Egypt since becoming president of the EBRD. My previous visits included two for monitoring the Bank's projects and one during COP27. On this occasion, I am here to hold high-level meetings with Egyptian officials, including Prime Minister Dr. Mostafa Madbouly, Minister of Planning and International Cooperation Dr. Rania Al-Mashat, and Minister of Investment and Foreign Trade Hassan Al-Khatib. Discussions have focused on cooperation priorities, support for Egypt's economy, and the Bank's ongoing and future investments. I also met with several private sector partners. Our relationship with the government and private investors in Egypt is strong, and we are committed to further deepening it.
AO: What is the scale of EBRD's financing in Egypt, and what qualifies the country as one of your main operational partners?
ORB: Egypt is one of the EBRD's largest countries of operations in the Southern and Eastern Mediterranean. Since 2012, we have provided €13.8 billion in financing across 194 development projects. In 2024 alone, our investments reached €1.5 billion, with 98 percent directed to the private sector. This strong financial partnership enhances Egypt's ability to attract domestic and international investment.
Our focus includes the energy sector, where the EBRD has mobilised $3.9 billion through the "Novi" programme. We also offer advisory services for water desalination projects in cooperation with the International Finance Corporation.
AO: How do you assess Egypt's recent financial and monetary reforms? Are there further steps to consider based on your global experience?
ORB: Over the past 18 months, Egypt has taken significant steps, especially in exchange rate liberalisation—an essential move to boost investor confidence. Other reforms aim to improve the business climate and stimulate private sector activity. Measures include tax and customs reforms, legislative updates, and fiscal adjustments—many implemented in coordination with the IMF. These reforms lay a solid foundation for sustained growth.
AO: What innovative financing solutions can EBRD offer to help Egypt bridge funding gaps and diversify its financial instruments?
ORB: Empowering the private sector is crucial for solving economic challenges and driving growth. To this end, we have agreed with the Egyptian government on a €10 million facility to fund feasibility studies and advisory services for public-private partnership (PPP) projects. This initiative will support infrastructure, energy, utilities, and public services contracts, boosting PPP activity and enhancing Egypt's economic competitiveness.
AO: What are the main challenges still facing the private sector in Egypt?
ORB: While Egypt has made significant progress in improving the business environment, challenges remain, especially regarding the free flow and exit of foreign capital. Though currency liberalisation has been implemented, confidence will take time to build. Streamlining bureaucratic procedures, such as land licensing, is also vital. In the energy sector, such efforts have already attracted foreign investment. Similar initiatives across other sectors can yield strong results.
AO: Egypt has committed to empowering the private sector through asset sales and implementation of the state ownership policy. How do you view these steps?
ORB: Egypt's approach is sound. Implementing the state ownership policy is a strong mechanism to support private sector participation. The EBRD can assist in two key areas: improving corporate governance to enhance overall efficiency, and supporting the privatisation process by attracting investment. We have extensive experience in this field and are ready to help Egypt prepare for optimal timing and execution of such listings.
AO: In your view, which is preferable in privatisation—stock market listings or strategic investors?
ORB: Both options serve different purposes. Stock market listings are ideal for large firms and require comprehensive preparation—financial disclosures, governance structures, etc. On the other hand, bringing in a strategic investor can transform management and operations, offering an opportunity to rethink and modernise business processes.
AO: What sectors should the Egyptian government prioritise for divestment?
ORB: Based on our experience, the ports and airports sector holds great potential for private investment. Allowing experienced private operators to take the lead can enhance efficiency, improve services, and attract new capital. This is especially strategic for Egypt, as better infrastructure in ports and airports directly supports tourism growth and foreign currency inflows.
AO: How do you evaluate the global economic landscape amid rising trade tensions and protectionist policies? Are there opportunities for Egypt in this environment?
ORB: Global trade tensions and potential tariff hikes—particularly from the US—contribute to economic uncertainty. While it is early to gauge the full impact, this shift presents an opportunity for Egypt to position itself as an alternative hub, particularly in sectors like textiles and garments. Egypt's labour capacity and strategic location can attract foreign manufacturers seeking to diversify their production bases.
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