Japan offers $234-m grant to boost Egypt’s budget, private sector

Egypt’s Minister of International Cooperation Rania Al-Mashat and Japan’s State Minister for Foreign Affairs Fuji Hisayuki have signed three grant agreements worth $234 million to support Egypt’s budget and promote private sector development.

The three agreements aimed at improving livelihoods for small-scale farmers and renewing the Egyptian Opera House.

The agreements provide 35 billion Japanese yen (approximately $230 million) in financing for development policy to support private sector development, economic diversification, and budget support in Egypt.

This aims to alleviate global economic pressures, encourage private sector investments, enhance the business climate, promote competition, and foster economic diversity and the green transition.

Al-Mashat clarified that the Development Policy Programme aims to bolster Egypt’s budget, enhance structural reforms, and boost private sector investments, according to the Ministry’s statement.

“She emphasised that concessional development financing is one of the most efficient and cost-effective mechanisms for reducing the financing gap, enabling the state to meet its needs and address global and regional economic tensions,” the report added.

Moreover, Al-Mashat signed a grant for the renovation of the Cairo Opera House, worth 180 million Japanese yen (equivalent to $1.17 million), aimed at improving the infrastructure of the National Cultural Center.

This project will be achieved through the development of equipment and services in collaboration with the Japan International Cooperation Agency (JICA), according to the statement.

Additionally, a grant under the Economic and Social Development Programme, worth 500 million Japanese yen (about $2.3 million), was signed to benefit the Ministry of Agriculture.

The aim is to promote affordable agricultural mechanization technology to boost production, expand farmland, and enhance the livelihoods of farmers, particularly those in low-income and vulnerable communities.

Attribution: Egyptian Cabinet report

Subediting: M. S. Salama