19 hours ago
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.
