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Egypt launched a new Public-Private Partnership (PPP) mechanism with the European Bank for Reconstruction and Development (EBRD). Minister of Finance Ahmed Kajouk announced the creation of an account that funds feasibility studies and pays for transaction advisors. The mechanism aims to accelerate project preparation and improve investor confidence. It marks a major step in expanding private sector participation in national development. With €10 million in support, the initiative reduces the time to hire consultants from 15 months to only eight weeks. This efficiency allows Egypt to launch more than ten PPP projects at once. The move highlights Egypt’s position as a regional leader in private sector-driven development and reflects the importance of EBRD Egypt PPP support.

Minister Kajouk emphasized that the private sector has shown strong capacity to compete. It now accounts for 65% of total investments in Egypt. Last fiscal year, the government approved and launched 30 PPP projects worth EGP 41 billion. These covered key areas such as dry ports, water treatment, sanitation, power distribution, and technical education. Future PPP projects are valued between EGP 25 and 30 billion. Officials continue to design attractive opportunities for both local and foreign investors. This shift demonstrates how policy reforms, improved frameworks, and competitive investment climates are driving private sector growth. The government plans to use this momentum to further expand economic resilience and diversify infrastructure delivery.

The launch event was hosted by the Central Unit for Participation with the Private Sector at the Ministry of Finance. Minister of Planning, Dr. Rania Al-Mashat, described the initiative as a “qualitative shift” in Egypt’s engagement with global financial partners. She emphasized that more than 80% of the European Bank for Reconstruction and Development’s (EBRD) investments in Egypt already focus on the private sector. The new mechanism integrates concessional financing with technical expertise to deliver projects that are both sustainable and bankable. Dr. Al-Mashat noted that this approach enhances macroeconomic stability while building stronger investor confidence. These steps highlight the pivotal role of EBRD Egypt PPP support in reinforcing competitiveness and strengthening trust in Egypt’s economy.

Advisor Ater Hanoura explained how the account supports financial sustainability. Winning investors reimburse the fund for project preparation costs, ensuring resources remain available for future PPPs. This revolving model allows the government to prepare more projects without overburdening public finances. The account also supports green PPP projects in areas like renewable energy, waste management, and climate-resilient infrastructure. Reducing project preparation time from 15 months to just eight weeks allows faster delivery of critical services. Planned projects include sanitation systems, sludge treatment plants, and industrial sewage facilities. Transparency and efficiency improve investor confidence and reduce risks. The model demonstrates effective cooperation with EBRD while showing how EBRD Egypt PPP support creates long-term benefits.

Egypt’s renewed focus on PPPs comes as economic growth strengthens. GDP rose 4.77% in Q3 FY 2024/25, compared to 2.2% the previous year. This is the highest quarterly growth in three years. Growth has been fueled by higher exports, rising private investments, and stronger non-oil manufacturing. Expanding PPPs helps sustain this momentum while easing pressure on state budgets. The projects also attract foreign direct investment and improve services in health, transport, and education. Egypt, with backing from EBRD, aims to position itself as a hub for regional PPP activity. The new mechanism is more than a financial tool; it is a strategic shift that redefines the state’s role in the economy. By supporting competition and building investor trust, Egypt ensures that PPPs will continue to drive growth in the coming decade.

Source:

Ministry of Finance, Arab Republic of Egypt

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