Egypt’s Prime Minister Moustafa Madbouli on Sunday witnessed the signing of an agreement with the International Finance Corporation (IFC), a financial arm of the World Bank Group (WBG).
As per the terms of the agreement, the IFC will act as a strategic advisor to the government to implement its initial public offerings (IPOs) programme, in line with the political leadership directives to attract investments, empower the private sector, stimulate the competitiveness of the Egyptian economy, and contribute to creating jobs and improving living standards.
Minister of International Co-operation and Egypt’s Governor at the WBG Rania el-Mashat and IFC Managing Director Makhtar Diop signed the agreement.
The agreement is the first to be signed following the approval of the new Country Partnership Framework (CPF) between Egypt and the WBG for FY2023-2027 last month. The strategy aimed at empowering the private sector and creating a suitable environment for local and foreign investments. The CPF is supported through a financial envelope worth $7 billion, in loans of $1 billion per year from the International Bank for Reconstruction and Development (IBRD) and about $2 billion from IFC during the entire CPF period and guarantees from the Multilateral Investment Guarantee Agency (MIGA).
The agreement reflects Egypt’s commitment to implementing its plan for empowering the private sector based on State Ownership Policy Document, which was approved in December 2022, to expand the base of private sector participation in development and raise economic growth rates.
According to the agreement, the IFC will provide support and technical advice to the government’s IPOs, assist in structuring companies targeted for IPO, and improve governance, in a way that enhances capital flows and supports the country’s vision to achieve economic recovery.
This agreement is aimed to encourage growth and investment in various sectors such as infrastructure, tourism, health care, education, agricultural and manufacturing industries.
Prime Minister Madbouli said: “Choosing the International Finance Corporation as a strategic advisor to the government for the IPO programme enhances the benefit from its accumulated experience in empowering the private sector in emerging markets.”
He went on to say theta the IFC plays a vital role in boosting partnership between the government and private sectors.
Meanwhile, the IFC Managing Director said that the Egyptian government has stated its objectives very clearly to mobilize the private sector.
Diop added that selecting the IFC as Egypt’s strategic advisor to support its vision of government IPOs for the private sector will unleash an increase in the participation of the private sector to build a sustainable, resilient and inclusive Egyptian economy.
El-Mashat said that the IFC is the largest global development institution focused on the private sector in emerging markets, implementing a set of its largest programmes in Egypt.
Egypt is a priority for IFC in Africa. IFC’s current investment portfolio in the country stands at $1.5 billion and its advisory portfolio amounts to $32.5 million. IFC has invested $1.8 billion in climate investments in Egypt since 2016, with focus on renewable energy, green financing for financial institutions, industrial and commercial energy efficiency, and green buildings.
