Egypt Signs Agreements to Enhance Private Sector Growth and Attract Foreign Investment

Strategic Insights -

Dr. Mostafa Madbouly, the Prime Minister of Egypt, attended a conference aimed at promoting private sector growth and attracting foreign investment, during which several agreements were signed between the government and various development partners and private sector companies. The agreements included a financial closure agreement for a 1-gigawatt solar power project with a 200-megawatt-hour battery storage, worth $600 million, developed by the Norwegian company Scatec. Other agreements included a power purchase agreement for a 900-megawatt wind energy project and a financing agreement for Egypt's first utility-scale energy storage project using batteries.

Key Takeaways:

  • The Egyptian government has continued its efforts to support the private sector in driving economic growth, with a focus on competitiveness, partnership, and sustainability.
  • The government has signed several agreements with development partners and private sector companies to enhance access to development partner services via the "Hafez" platform for financial and technical support.
  • The "Hafez" platform, launched by the Ministry of Planning, Economic Development, and International Cooperation, provides over 90 financial services and technical support from 44 bilateral and multilateral development partners.
  • The platform has seen a significant increase in services, from 62 at launch in December 2023 to over 90 currently, attracting nearly 18,000 users from the private sector and entrepreneurs.
  • The platform's database includes over 700 companies that have benefited from support services, as well as over 1,000 tenders and development initiatives funded by development partners.
  • The Egyptian government has committed to implementing its national programme of structural reforms to enhance economic growth and employment.

Statistics:

  • The solar power project, developed by Scatec, has a capacity of 1 gigawatt and a battery storage of 200 megawatt-hours, with a total investments of $600 million.
  • The wind energy project, also developed by Scatec, has a capacity of 900 megawatts.
  • The "Hafez" platform has seen a significant increase in services, from 62 at launch in December 2023 to over 90 currently.
  • The platform has attracted nearly 18,000 users from the private sector and entrepreneurs.
  • The platform's database includes over 700 companies that have benefited from support services.
  • The platform provides over 1,000 tenders and development initiatives funded by development partners in Egypt and more than 80 other countries.

Sources:

  • State Information Service Egypt
  • Ministry of Planning, Economic Development, and International Cooperation
  • Egyptian Banks Union
  • European Investment Bank
  • International Finance Corporation (IFC)
  • Scatec
  • Egyptian Electricity Transmission Company
  • EMEA Power
  • IFC
  • European Commission
  • British Investment Office in Egypt
  • African Development Bank Office in Egypt
  • National Bank of Egypt