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.
These efforts are designed to create a more business-friendly environment and attract both local and foreign investments, explained Al-Mashat.
Regarding the green transition and economic diversification, several initiatives have been introduced, such as the enactment of a law to regulate unlicensed industrial facilities.
Additionally, the government has expanded areas designated for renewable energy investments by allocating 26,000 square kilometers of state-owned land for such purposes. These efforts are aimed at advancing Egypt's transition to a green economy, supporting sustainable energy initiatives, and promoting environmentally friendly business practices.
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Al-Mashat further stressed that enhancing macroeconomic stability and continuing structural reforms are integral to the country's development strategy.
The Egyptian government is committed to achieving sustainable and inclusive development through the collaborative efforts of various institutions, in alignment with integrated strategic plans. As part of its ongoing efforts, Egypt aims to drive the green transition and create an environment conducive to business growth and innovation.
