Egypt signs $170m AfDB funding, $400K grant for Abu Rawash
Egypt signed a $170 million financing agreement with the African Development Bank (AfDB) to support private sector growth and economic diversification, alongside a $400,000 grant to boost sustainability at Abu Rawash wastewater plant, the planning ministry said Monday.
The agreement, signed by Minister of Planning Rania Al-Mashat and Abdourahmane Diaw, AfDB’s country manager in Egypt, represents the second phase of Private Sector Development and Economic Diversification Support Programme (PSD-EDSP II), designed to support the state budget and advance long-delayed structural reforms.
Al-Mashat said the agreement underscored the depth of Egypt’s long-standing partnership with the AfDB, which she said had played a central role in supporting development in sectors ranging from water and sanitation to transport and economic reform. She added that the government was working with international partners to mobilise concessional financing to ease pressure on public finances and expand spending on human development.
The minister also pointed to AfDB’s growing emphasis on private sector lending, noting that financing directed to private companies in 2025 was three times larger than sovereign lending, a sign of rising confidence in Egypt’s economy.
The new financing follows a first phase of the programme worth $131 million, which was approved by the Egyptian Parliament in December 2024.
Al-Mashat also highlighted the significance of the new grant for the Abu Rawash wastewater treatment plant, one of the largest facilities of its kind in the world, noting that the collaboration with the AfDB aims to enhance both its environmental sustainability and operational efficiency.
In May 2025, Egypt and the AfDB signed an agreement to finance a fourth expansion phase of the Abu Rawash Plant, increasing its treatment capacity from 1.6 million to 2 million cubic metres per day. The expansion is expected to benefit about 8.6 million people in Giza Governorate, while improving public health and environmental sustainability.
The ministry has previously said Egypt is set to receive about $9.5 billion in concessional budget support financing between 2023 and 2026 to bolster macroeconomic stability, improve the investment climate, and accelerate a transition towards greener growth.
Attribution: Amwal Al Ghad English