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Egypt Today
16 hours ago
- Business
- Egypt Today
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.
Daily News Egypt
04-03-2025
- Business
- Daily News Egypt
Egypt expands Ro-Ro shipping to accelerate agricultural exports to Europe
Egypt is strengthening its roll-on/roll-off (Ro-Ro) shipping operations to enhance export efficiency, particularly for perishable agricultural goods bound for European markets. In pursuit of this goal, Vice Prime Minister for Industrial Development, Minister of Industry and Transport Kamel Al-Wazir, met with Minister of Agriculture Alaa Farouk to discuss maximizing the benefits of the Ro-Ro shipping line between Damietta and Italy's Trieste. The meeting focused on optimizing the transport of refrigerated and dry cargo to support the country's growing export sector. Officials reviewed the performance of the Ro-Ro shipping line since its launch, including the number of trips conducted, cargo volumes, and key export categories. Discussions also covered proposals and future plans presented by Pan Marine, the line's operator, to help Egyptian exporters fully capitalize on the route and expand their reach into European markets. The meeting emphasized the strategic advantages of the Ro-Ro shipping line, particularly the reciprocity principle in port fees and operational incentives at both ports. Notably, port fees have been slashed from $26,050 to $3,250 per voyage—an 88% reduction—to encourage greater utilization. Additionally, a 35,000-square-meter area has been designated for the project, complete with full-service connections. Further facilitating operations, the Damietta Port Authority has issued a government guarantee letter to Egyptian Customs, while the Ministry of Finance has provided an X-ray scanner for security and efficiency. Egyptian and Italian customs will also be linked through enhanced digital applications at Damietta Port, allowing for seamless exchange of official documents, such as health and food safety certificates. To ensure wider adoption of the Ro-Ro shipping line, Al-Wazir called on the Federation of Chambers of Commerce to engage export and import divisions across Egypt to raise awareness about its benefits. Coordination with major exporters was also encouraged to fully leverage the route for expanded trade between Egypt, Italy, and broader European markets. The discussion highlighted the importance of driver training, particularly through the Port Training Institute's advanced simulators, to prepare Egyptian truck drivers for safe and efficient transport to Italy. Collaboration among key stakeholders—including the Federation of Egyptian Industries, the Federation of Chambers of Commerce, export council heads, and exporters—was also emphasized as essential for maximizing the Ro-Ro line's impact. This shipping route serves as a green corridor between Egypt and Italy, reducing shipping costs and transit time while reinforcing Egypt's role as a key logistics hub between Europe and Africa. It also fosters mutual trade opportunities, boosts exports of industrial and agricultural products, and generates employment across the transport and shipping sectors, particularly for Egyptian truck drivers and administrative staff. By expanding Ro-Ro shipping operations, Egypt is taking a major step toward strengthening its export sector, ensuring faster, more cost-effective access to European markets while positioning itself as a leader in regional trade and logistics.
