Op-Ed: Understanding the potential behind public and private partnerships in Egypt

CAIRO – 11 January 2018: Following the economic downturn in the country, companies have recognized the importance of aligning long-term strategies with the government policies and agendas to ensure sustainable success. Public and private partnerships have become an important tool for the government to appropriately allocate the risks and responsibilities associated with expanding the economy and stimulating job creation.



Whilst the government utilizes efficiencies of the private sector in running public services, the private sector gains legal security for maximizing value for money for governments, which inspires confidence in the longevity of business operations. In light of this mutually beneficial alliance, these partnerships aim to help improve governmental challenges while simultaneously developing expertise in vital sectors such as infrastructure, communications, and housing among others.

At the forefront of the country’s development plans are Egypt’s Vision 2030 sustainability goals, directing the strategy of policy-making and private sector contributions. The economic, social and environmental dimensions define the outline of the sustainable growth the government aims to achieve, with high dependency on the private sector’s innovation.

The economic pillar is set to increase the gross domestic product (GDP) growth rate per annum at 7 percent; through the reduction of the unemployment rate and enhanced innovations in the industrial sector. The environmental pillar aims to decrease pollution and water waste efficiency through regulation policies nation-wide. A key objective set in the social justice pillar is achieving confidence in the government, set at 80 percent by 2030; through enhanced primary healthcare and education, reduction of poverty rates, and boosting infrastructure.

In an effort to move towards the goals set under infrastructural development, the housing and transport ministries invited local and international companies this month to submit contractual offers to finance and maintain monorail projects from Giza to the new capital. The World Bank (2012) estimated that the Middle East and North Africa region will need between $75 and $100 billion of investments per year over the next 20 years to meet its needs in infrastructural development.

In the education sector, there are plans to develop and run 200 public-private partnerships schools this month for the Education Ministry’s public-private partnership (PPP) schools projects aimed at enhancing primary education across the country. Under the economic pillar, several national projects are in progress such as the new administrative capital, hosting outnumbered public partnerships in the development of 20 housing projects worth $15 billion, and government districts attracting $10 billion worth of investments.

As companies continue to assess the opportunities of growth in alignment with government entities, businesses see the clear elevation in category competition, enhanced innovation with impact in specialized industries, and optimized consumer targeting creating unprecedented progress in the country.

Positive sentiment towards future-oriented projects among the Egyptian population has led to an immense growth in public-private partnerships, providing evidence that exclusive dependence on government is unreliable and inefficient in current economic plans.