CAIRO: The Egyptian House of Representatives has approved a $131 million agreement with the African Development Bank (AfDB) to support the first phase of the Private Sector Development and Economic Diversification Program. The agreement aims to enhance Egypt’s economic diversification and improve the business environment as part of the general state budget support.
According to State Information Service Egypt, the agreement is a key component of Egypt’s broader strategy to achieve economic stability and sustainability. Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, stated that this initiative continues the government’s collaboration with international partners to implement the national structural reform program. The agreement comes on the heels of parliament’s recent approval of a macroeconomic support mechanism with the European Union, valued at one billion pounds, designed to promote private sector growth and structural reforms.
Al-Mashat outlined the primary objectives of the Private Sector Development and Economic Diversification Program. The first is to encourage private sector investment by enhancing the investment climate, promoting fair competition, and improving trade practices. The second goal is to foster economic diversification and transition to a green economy by strengthening sectors such as industry and agriculture and supporting sustainable economic practices.
To achieve these objectives, the government has enacted several reforms to create a more business-friendly environment. These measures include the formation of the Supreme Investment Council, amendments to the 2017 Investment Law introducing new incentives, the removal of tax exemptions for state-owned enterprises with investment activities, and the establishment of the Egyptian Intellectual Property Office. These efforts aim to attract both local and foreign investments.
In support of the green transition and economic diversification, the government has introduced initiatives such as a law regulating unlicensed industrial facilities and allocated 26,000 square kilometers of land for renewable energy investments. These actions are intended to advance Egypt’s transition to a green economy, support sustainable energy, and promote environmentally friendly practices.
Al-Mashat highlighted that maintaining macroeconomic stability and pursuing structural reforms are essential to Egypt’s development strategy. The government is committed to sustainable and inclusive development through collaboration with various institutions and alignment with integrated strategic plans. Egypt aims to drive the green transition and foster an environment conducive to business growth and innovation.