Egypt signed an agreement with the corporation last Sunday, according to which the corporation will provide technical support and advice to the government offering program, assist in structuring and preparing companies targeted for offering to the private sector, and improve corporate governance in a way that enhances capital flows and supports efforts to achieve economic recovery, according to a statement by the ministry, Monday.
The statement said that by the end of May 2023, the current portfolio of the International Finance Corporation in Egypt recorded about $1.4 billion, of which infrastructure and renewable energy projects account for 36 percent, followed by manufacturing with 20 percent, then agricultural business and financial services with 15 percent each.
The value of the allocations available from the World Bank Group to implement the strategic partnership framework between Egypt and the World Bank Group, which was agreed upon earlier this year, amounts to seven billion dollars, at a rate of one billion dollars annually from the International Bank for Reconstruction and Development over the next five years, in addition to two billion dollars in investments with The private sector during the same period of the International Finance Corporation.
Al-Mashat told Reuters that the head of the Foundation, Mukhtar Dayoub, expressed his desire to double the volume of its investments in Egypt, noting that the Foundation’s investments are directed entirely to the private sector, not to the government.
She added, “When we talk about their investments or financing in Egypt, it is for the Egyptian private sector in its various forms, whether large, medium or small companies, and also in entrepreneurship. The soft funds from development partners are not only for the Egyptian government, but they are for the private sector, whether from the International Finance Corporation or the European Bank.” Reconstruction and Development, the European Investment Bank or other partners.
The government proposals program is part of the state ownership policy document, which is a new framework approved in December 2022 to expand the base of private sector participation in development, raise economic growth rates, and provide various opportunities for the presence of the private sector in economic activities. The agreement signed with the International Finance Corporation is the first within the framework of the strategic partnership.
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