IFC Head commends Egypt's reforms in aligning development finance with national priorities
Cairo – June 16, 2025: Speaking at the 'Development Finance to Empower the Private Sector: Economic Growth and Employment' conference in Cairo, IFC Managing Director Makhtar Diop praised Egypt's efforts in aligning development finance with national priorities, noting that the country's evolving relationship with the IFC reflects a deeper commitment to structural economic reform, innovation, and inclusive growth.
Held under the patronage and attendance of Prime Minister Mostafa Madbouly, the conference brought together ministers, development partners, ambassadors, and key business associations, including the Federation of Egyptian Industries and the Federation of Chambers of Commerce.
Diop announced a new €1.8 billion European investment guarantee mechanism intended to accelerate private investment in priority sectors such as clean energy and advanced industry. The initiative is part of broader efforts to support Egypt's green transition and boost sustainable job creation.
Since 2020, the IFC has mobilized $4 billion for Egypt's private sector through direct investments and by attracting additional international investors. According to Diop, this contribution forms part of over $15 billion in total financing from development partners in support of private sector growth in Egypt.
He stressed that these investments reflect growing global confidence in Egypt's economic potential. 'These initiatives are not just financial transactions; they are a turning point in investor sentiment and the business environment,' he said. The initiatives also facilitate the transfer of advanced technologies, build local capacities, and position Egypt as a competitive hub for innovation.
Diop added that the IFC now serves as a global connector between international investors and Egypt's emerging economic opportunities, especially capital-focused investments that enable businesses to grow and innovate.
He reiterated the IFC's strong commitment to supporting small and medium-sized enterprises (SMEs), which constitute over 90 percent of Egypt's informal economy.
The integrated approach of the World Bank Group, Diop said, has been critical to this progress. While the International Bank for Reconstruction and Development (IBRD) funds infrastructure and policy reforms, and MIGA offers political risk insurance, the IFC provides financial and technical support to private firms. This collaboration, he noted, has helped double the Group's financial commitments to Egypt to around $65 billion in the current fiscal year.
The new European guarantee mechanism, he noted, is expected to create a tangible local impact by driving investment in priority sectors and fostering job training, employment, and technology transfer at the community level.
Diop concluded by commending Egypt's political leadership for prioritizing private sector empowerment through ambitious reform programs. He cited the state's IPO program and ownership policy reforms as examples of how Egypt is providing greater space for private participation in the economy.
'The IFC and the World Bank Group reaffirm their full commitment to supporting Egypt's vision of a competitive, inclusive, and strong private sector that forms the backbone of national development,' he stated.
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Diop's insights highlighted the pivotal reforms shaping Egypt's economic future and the opportunities they create locally and across the African continent. Ahram Online: What were the key highlights of your meeting with the Egyptian president regarding the asset monetization programme? Makhtar Diop: The meeting highlighted a crucial phase in Egypt's economic strategy, focusing on the asset monetization programme. The president reiterated the government's commitment to this initiative, emphasizing its potential to invigorate the economy. We discussed the proposal to begin with the monetization of 11 airports, a strategic move to optimize state assets. We plan to launch tenders for the first airport by the end of 2025, marking a significant step forward. Our conversation underscored the benefits of a portfolio approach. This approach allows for the simultaneous management of multiple assets, thus minimizing the risks associated with dependence on a single transaction. 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Egyptian construction firms have significant potential to expand into other African markets, particularly as the continent faces a growing demand for infrastructure improvements. This would benefit local companies and strengthen regional ties. Agriculture: We explored strategies to revitalize the agricultural sector, tapping into Egypt's historical strengths, particularly in crops like cotton. Innovations and investments in modern agricultural techniques could significantly enhance productivity and sustainability. We explored strategies to revitalize the agricultural sector, tapping into Egypt's historical strengths, particularly in crops like cotton. Innovations and investments in modern agricultural techniques could significantly enhance productivity and sustainability. Trade and Integration: The discussions also focused on the importance of African integration. By leveraging the African Free Trade Agreement, we can boost inter-African trade and reduce reliance on non-African markets, enhancing economic resilience and collaboration. AO: What strategies are being proposed to enhance trade among African nations, and how does the IFC plan to support this? MD: The IFC spearheads the African Trade Initiative, which aims to strengthen trade relationships across African nations. Key strategies include enhancing the capacity of local banks to provide trade financing, thereby minimizing reliance on foreign banking systems, which can be a bottleneck for trade. By facilitating direct banking relationships and providing innovative funding solutions, we can streamline the flow of goods and services across borders. Additionally, we are focused on creating platforms for knowledge exchange and collaboration among businesses, fostering a cooperative environment that not only boosts trade volume but also enhances overall economic resilience across the continent. AO: What potential does the tourism sector have for economic recovery in Egypt, and how does the IFC plan to engage with it? MD: The tourism sector is poised to play a crucial role in Egypt's economic recovery, offering substantial potential for diversification and growth. Egypt can tap into new visitor demographics by broadening its attractions to include cultural and health tourism and creating more sustainable revenue streams. The IFC is actively engaging with tourism projects to upgrade infrastructure and implement sustainable practices, such as the EDGE Advanced Green Building Certification for the Grand Egyptian Museum. 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