The Egyptian parliament has approved a landmark agreement with the African Development Bank (AfDB), marking a pivotal step in the nation’s economic reform and diversification strategy.
Egypt’s House of Representatives ratified a $131 million deal to finance the first phase of the Private Sector Development and Economic Diversification Program. The agreement, formalized through Presidential Decree No. 383 of 2024, was announced during a parliamentary session. The program is aimed at driving private sector growth, diversifying the economy, and advancing sustainable development.
Speaking on the approval, Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, highlighted the importance of this partnership. “This agreement complements ongoing collaborations with international partners, supporting Egypt’s structural reforms, budget stability, and private sector expansion,” she said.
The move follows a €1 billion macroeconomic support initiative recently approved in partnership with the European Union, showcasing Egypt’s robust engagement with global institutions to achieve economic stability.
Key Pillars of the Program
The AfDB-funded initiative focuses on two main objectives. First, it aims to create an environment conducive to private sector investment by enhancing competitiveness, streamlining regulations, and ensuring equitable trade practices. Second, it seeks to diversify Egypt’s economy while advancing its green transition through targeted support for vital sectors, including industry and agriculture.
Reforms under the program include the establishment of the Supreme Investment Council, amendments to Investment Law No. 72 of 2017, and the removal of tax exemptions for state-owned enterprises involved in investment activities. Additionally, the government has launched the Egyptian Intellectual Property Office to strengthen innovation.
On the green front, measures include a law regulating unlicensed industrial facilities and allocating 26,000 square kilometers of state-owned land for renewable energy projects, demonstrating Egypt’s commitment to sustainability.
A Path to Inclusive Growth
Al-Mashat reiterated that economic stability and structural reforms remain at the core of Egypt’s development strategy. “Through strategic partnerships and institutional reforms, we are working towards sustainable, inclusive growth that aligns with our national priorities,” she said.
As Egypt accelerates efforts to improve the business environment and embrace a greener economy, this agreement with the AfDB signals a promising trajectory for the country’s economic transformation.