The European Bank for Reconstruction and Development has invested more than €13.8 billion in the Egyptian economy since 2012
Cairo
Rania Al-Mashat, Egypt’s Minister of Planning, Economic Development, and International Cooperation, affirmed the strategic partnership with the bank during her meeting today (Monday) in Cairo with Odile Renaud-Basso, President of the European Bank for Reconstruction and Development.
As part of this partnership, the bank has invested more than €13.8 billion in the Egyptian economy since 2012 (one euro equals 57.54 Egyptian pounds), with more than 86% of these investments in the private sector.
According to a statement from the ministry, the EBRD’s investments over the past year reflect the bank’s great confidence in the Egyptian economy and its ability to attract local and foreign companies to access external financing.
The country’s successes, particularly in the field of structural reforms in the renewable energy sector, have enabled the bank, as a key partner in the energy sector, to attract innovative financing for numerous projects.
For her part, Odile Renaud-Basso emphasized the depth of the relationship between the bank and Egypt, and the European Bank’s commitment to injecting investments into the local market, amounting to approximately 1.5 billion euros last year. She also emphasized the bank’s keenness to maximize this cooperation in more development areas.
During the meeting, Al-Mashat reviewed the positive indicators of the Egyptian economy, emphasizing that Egypt is pursuing an approach to achieving comprehensive economic development led by the private sector and based on tradable and export-oriented sectors.
She noted that the current government is making efforts to enhance macroeconomic stability and continues to implement structural reforms that stimulate the private sector and provide a favorable investment climate and business environment. She emphasized that the government intends to move forward with the IPO program to maximize returns on state-owned assets.
She affirmed the government’s commitment to the investment spending ceiling of approximately one trillion Egyptian pounds for public investments, in order to make room for domestic and foreign investment and reduce the state’s presence in economic activities while increasing private sector investment. This was evident in the first and second quarters of the current fiscal year, as private sector investment increased while public investment declined, accounting for more than 50% of total investments.
Regarding concessional development financing, she explained that 2024 was a landmark year for private sector development financing, reaching a five-year high of approximately $4.2 billion (one dollar equals 50.73 Egyptian pounds), exceeding government financing of $3.2 billion. She noted that most of the government’s financing last year was to support the budget and promote structural reforms.
