AfDB agreement to support private sector development program approved by Parliament
The Egyptian House of Representatives has approved a significant agreement between the Egyptian government and the African Development Bank (AfDB) to support the first phase of the Private Sector Development and Economic Diversification Program as part of the general state budget support.
The agreement, valued at $131 million, aims to bolster Egypt's economic diversification efforts and improve the business environment, according to a statement from Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation.
This move is part of the broader strategy to enhance the country’s economic stability and sustainability, she added.
Al-Mashat emphasized that the agreement with the AfDB is a continuation of the government’s ongoing efforts with international partners to implement the national structural reform program.
It follows the parliament’s recent approval of the first phase of a macroeconomic support mechanism with the European Union, valued at €1 billion. The program is designed to promote private sector growth, support structural reforms, and stimulate economic diversification in Egypt.
Al-Mashat explained that the main goals of the Private Sector Development and Economic Diversification Program are twofold.
First, it seeks to encourage private sector investment by improving the investment climate, promoting fair competition, and enhancing trade practices. Second, the program aims to foster economic diversification and the transition to a green economy by strengthening critical sectors such as industry and agriculture, while supporting the shift to sustainable economic practices.
In line with the program's objectives, the government has implemented several key reforms to improve the investment climate.
These include the establishment of the Supreme Investment Council, amendments to the 2017 Investment Law that introduce new incentives and flexible criteria for investment projects, the removal of tax exemptions for state-owned enterprises with investment activities, and the creation of the Egyptian Intellectual Property Office.