AfDB approves $170m loan for Egypt’s private sector, green growth

The African Development Bank (AfDB) has approved a $170 million loan to Egypt to support the second phase of its programme aimed at enhancing private sector development and economic diversification, focusing on green growth. The loan, approved on November 27, 2024, i supposed to fund budget support for the period 2024-2025.

This follows a $131 million loan for the programme’s first phase in 2023-2024, with contributions from the Economic Cooperation Development Fund (EDCF) and the Japan International Cooperation Agency (JICA). The World Bank is also supporting phase II.

The programme focuses on improving Egypt’s business climate, particularly in manufacturing and agribusiness, while promoting renewable energy and reducing carbon emissions.

It aims to boost private sector investment, create jobs, and support women and youth. It will also work to formalise informal businesses and reform laws for small claims, benefitting women-led small and medium enterprises.

The success of the first phase sets a positive foundation for the second phase, which will further economic diversification, strengthen competitiveness, and attract more investment, helping to improve Egypt’s debt sustainability.

Abdourhamane Diaw, Head of the AfDB’s Egypt office, expressed confidence in Egypt’s growing economy, highlighting its educated population, competitiveness, and private sector potential.

Attribution: Amwal Al Ghad English

Subediting: M. S. Salama