Egypt: African Development Bank approves $131 million to promote private sector development and economic diversification

[Deeq A.]

PRESS RELEASE
Egypt: African Development Bank approves $131 million to promote private sector development and economic diversification
The program supports the Egyptian government’s efforts through a robust public reform matrix to facilitate increased private sector development

ABIDJAN, Ivory Coast, November 27, 2023/ — Finance
Programme name: Private Sector Development and Economic Diversification Support Program – Phase I (PSD-EDSP I)
Total amount: US$131 million
Background

Confronted with significant external shocks in the last few years, Egypt has made substantial efforts to mitigate the impacts of the COVID-19 pandemic and Russia’s invasion of Ukraine on the domestic economy and preserve resilience. After addressing these shocks through emergency measures that benefited vulnerable communities, the government firmly committed to implementing appropriate mid- to long-term measures to build a resilient economy through private sector development, economic diversification, and green transition.

The program supports the Egyptian government’s efforts through a robust public reform matrix to facilitate increased private sector development by improving the business environment and diversifying sources of green growth.

Specific objectives of the programme:
Contribute to improving the business environment by adding new incentives for private sector investors and reducing delays in obtaining investment licenses.
Strengthening the framework for competition and commercial justice.
Promoting key productive sectors, including manufacturing and agribusiness.
Supporting green transition by allocating the necessary land to renewable energy investments and promoting green hydrogen.
Beneficiaries
Direct beneficiaries: Egyptian State, private industries and agri-business operators.
Indirect beneficiaries: Local SMEs, especially women-owned businesses.
Expected results

By promoting private sector development and supporting economic diversification and green transition, the PSD-EDSP I will:
Boost private investment from 3.3% of GDP in 2021/22 to 4.3% in 2024/25.
Reduce the processing time for business licenses from 28 days in 2022 to 10 days in 2025.
Increase manufacturing value from 14.2% of GDP in 2021 to 17% in 2025.
Increase the area of state-owned lands dedicated to renewable energy investments up to 30,000 square kilometers by 2025.
Distributed by APO Group on behalf of African Development Bank Group (AfDB).

About the co-financing of the program:
PSD-EDSP was designed in collaboration with other development partners, as illustrated by the adoption of a joint Policy Matrix co-financed by the Japan International Cooperation Agency (JICA) and Korea Economic Development Cooperation Fund (EDCF) under the “Korea-Africa Energy Investment Framework”.
SOURCE
African Development Bank Group (AfDB)

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