AfDB commits $746M to Egypt in 2025, targeting private sector, pharma, and clean energy

Daily News Egypt

25-05-2025

The African Development Bank (AfDB) will provide Egypt with $746m in funding in 2025, matching the amount projected for 2026, according to Abdourahmane Diaw, AfDB's Country Manager in Egypt.
This support encompasses both sovereign and non-sovereign operations, reinforcing Egypt's standing as the Bank's second-largest regional member country shareholder—after Nigeria—and the third-largest overall.
Speaking to Daily News Egypt, Diaw revealed that AfDB's current portfolio in Egypt totals $2.045bn, with private sector operations accounting for $800m, or 39%. The Bank is currently involved in 13 active private sector projects: seven in the power sector, three in finance, and one each in healthcare, industry, and agribusiness.
Key Projects in 2025
AfDB is advancing four major initiatives in Egypt for 2025:
Minapharm Expansion and Renovation Program
Approved in March 2025, this project aims to scale up Egypt's pharmaceutical capacity by producing biosimilar monoclonal antibodies for oncology and autoimmune diseases—addressing a critical gap in Africa's healthcare landscape.
JELES
Set for board approval in June, Jobs, Entrepreneurship, and Livelihood Enhancement Support (JELES) will promote youth employment by supporting startups, MSMEs, and inclusive value chains across Egypt.
Partial Credit Guarantee for Samurai Bond
Expected to go before the board in September 2025, this $400m equivalent guarantee (in Japanese yen) will back the issuance of a $500m sustainable Samurai bond, helping Egypt secure more favorable financing terms amid global economic uncertainty.
Large-Scale Solar PV and Battery Storage Project
A private sector-led initiative in southern Egypt, this project will combine solar generation with battery storage and a high-voltage substation to deliver dispatchable clean energy, strengthen grid reliability, and enhance frequency and voltage control.
Sector Focus and Strategic Priorities
Finance is now the largest segment of AfDB's Egypt portfolio, representing 31%, followed by energy (21%), multisector (19%), agriculture (10%), water and sanitation (9%), and transport (8%). The social and industrial sectors account for just 1% each.
Highlighting Egypt's prominence in pharmaceuticals—MENA's largest market with revenues exceeding $56bn—Diaw emphasized AfDB's investment in critical health infrastructure. In March 2025, the Bank approved a €15m senior loan to Minapharm Pharmaceuticals. It is also conducting due diligence on what could become Africa's first facility for producing active pharmaceutical ingredients (APIs) for small molecules, with a board decision expected by year-end.
Diaw added that the Bank is in discussions to support medium-sized pharmaceutical companies through local commercial banks. Over the past three years, AfDB has funneled $293m to Egyptian banks, mainly to finance SMEs, with future funding tied to performance evaluations.
Looking ahead, AfDB is prepared to back Egypt's green hydrogen ambitions as part of its broader energy transition and regional hub strategy.
Regional Development Vision
Under its 2022–2026 Country Strategy Paper, AfDB prioritizes enhancing Egypt's competitiveness through private sector-led growth and job creation, especially for youth.
Beyond Egypt, the Bank is a cornerstone of the Programme for Infrastructure Development in Africa (PIDA), a joint initiative with the African Union Commission and NEPAD. AfDB is engaged in 56 PIDA projects spanning transport, energy, water, and ICT.
As part of its 2024–2033 Ten-Year Strategy, AfDB aims to accelerate infrastructure connectivity, eliminate trade barriers, harmonize regulations, and bolster the African Continental Free Trade Area (AfCFTA).
'Regional integration, regulatory reform, and labor mobility are essential to unlocking Africa's full economic potential—especially for its youth,' Diaw concluded.