Egypt one of MENA leaders in Public-Private Partnership

PPP provides competitive opportunities for local, foreign investments

Egyptian Minister of Finance Ahmed Kouchouk confirmed that investments in Public-Private Partnership (PPP) during the last fiscal year 2023-2024 stood at LE19.8 billion.

These investments cover various sectors, including solid waste management, dry ports, power transformer stations, electricity distribution networks, vocational education, and strategic commodity storage.

For the 2024-2025 fiscal year, the government is aimed to initiate six new projects in collaboration with the private sector, with an investment cost exceeding LE27 billion, Kouchouk said.

Additionally, the state will launch several projects to establish electrical transformer stations, wastewater treatment plants, vocational schools, storage facilities, and wholesale markets, a statement by the Ministry of Finance, said on Tuesday.

“We have implemented 10 structural reforms in fiscal policy, which will enable us to manage risks efficiently and increase the competitiveness of the Egyptian economy,” Kouchouk said.

He added that the state has set a binding ceiling on total public investment, which would give more room to the private sector.

The minister stressed that the PPP system creates competitive opportunities for both local and foreign businesses. It serves as an alternative framework for public investments, facilitating the inflow of private investments into the local economy. This step aligns with the government’s commitment to fostering an attractive business environment aimed at increasing the private sector’s contribution in investment activities.

The minister said that efforts are underway to encourage the private sector to participate in executing public service and infrastructure projects across the country.

This creates significant and diverse opportunities for the private sector to inject more investments in priority national sectors, Kouchouk said. He clarified that the PPP system opens promising avenues for achieving the objectives outlined in the State Ownership Policy Document, aligning with financial policies, incentive initiatives, and institutional reforms that support the business community.

The minister expounded that the PPP system provides balanced and attractive contracts for local and international financing entities.

Kouchoukaffirmed the government’s commitment to expanding PPP projects while alleviating pressures on the state budget amid the internal and external challenges posed by geopolitical tensions.

Egypt is considered one of the Middle East and North Africa (MENA) region leaders in the PPP field.

 Over the past two years, the Ministry of Finance has hosted delegations from Sudan, Libya, Burundi, and South Africa seeking to benefit from Egyptian expertise in implementing development projects under the PPP framework, funded by the European Union and the United Nations.