Development partners have invested $11B in Egypt since 2020, private sector engagement pivotal to drive growth: Al Mashat

Cairo – September 9, 2024: Development partners have invested $11 billion into Egypt since 2020, Minister of Planning and Economic Development (MPED) Rania Al Mashat stated on Monday while emphasizing that private sector engagement is crucial as Egypt seeks to drive sustainable growth and maximize the impact of development partners on the national economy.

Al Mashat spoke during a press conference earlier today to celebrate the government’s recent divestment from Tamweely Microfinance to an international consortium of investors.

The minister highlighted that the divestment aligns with the State Ownership Policy Document’s objective to enhance economic efficiency and attract private investment.

She explained that the divestment “represents a practical application of efforts to govern economic activities and implement the State Ownership Policy Document”.

On Monday, it was revealed that 100 percent of the shares of Tamweely Microfinance, previously held by NI Capital and Ayadi (subsidiaries of the National Investment Bank and Post for Investment), will now be owned by an international consortium.

This consortium includes prominent financial entities such as the European Bank for Reconstruction and Development (EBRD), the British International Investment (BII), and private equity funds like SPE Capital and Tamweely Capital Ventures (TCV).

Al Mashat emphasized that this move is integral to Egypt’s three-year economic program, which focuses on building a competitive investment environment, boosting foreign direct investment, and ensuring sustainable economic growth.

The program is designed to support micro, small, and medium-sized enterprises (MSMEs), which represent approximately 98 percent of the 3.4 million private sector businesses in Egypt, the MPED statement wrote. By channeling investments into this critical sector, Egypt aims to stimulate economic expansion and job creation.

The minister also highlighted the launch of the Hub for Advisory, Finance & Investment for Enterprises, a platform designed to facilitate private sector engagement by providing comprehensive information on financing tools and support services.

Al Mashat reiterated the Ministry’s commitment to enhancing investment efficiency and maximizing the benefits of government investments. By strategically divesting government-held stakes and fostering private sector engagement, Egypt is paving the way for economic growth driven by private investments, in alignment with the country's overarching vision for economic advancement.