Egypt has signed two financing agreements with the African Development Bank (AfDB) totaling US$170.4 million, aimed at supporting private sector development and expanding wastewater treatment capacity, the Ministry of Planning, Economic Development, and International Cooperation announced on Monday.
The larger of the two agreements, valued at US$170 million, funds the second phase of a programme designed to accelerate private sector development and economic diversification. This initiative forms part of a broader US$9.5 billion concessional budget support package agreed with international financial institutions for the 2023–2026 period.
According to the ministry, the second phase of the programme seeks to advance structural and economic reforms, bolster macroeconomic stability, and improve Egypt’s business and investment climate. The reforms include measures to facilitate the country’s transition to a green economy, enhance private sector participation, and strengthen regulatory frameworks. The first phase, approved in December 2024, was supported with US$131 million from the AfDB.
“This programme is central to our efforts to strengthen private sector contribution to economic growth,” a ministry spokesperson said. “It supports reforms that will improve the investment climate, promote sustainable business practices, and diversify the economy away from reliance on public spending and oil revenues.”
The second agreement is a US$400,000 grant supporting the fourth phase of the Abu Rawash wastewater treatment plant in Giza. The funding will enhance operational efficiency, expand treatment capacity from 1.6 million to 2 million cubic metres per day, and promote sustainable water reuse for agricultural and environmental purposes. Once complete, the expansion is expected to benefit approximately 8.6 million residents in Giza governorate.
More Read
Egypt has placed private sector expansion at the centre of its economic reform agenda. Government targets include annual foreign direct investment of US$24.6 billion, total exports of US$145 billion, and private sector contributions of 72 percent of total investment by 2030. The reforms aim to promote growth across key sectors including real estate, industry, foreign trade, non-banking financial services, and the labour market.
The government also targets overall economic growth of 7.5 percent by 2030, supported by fiscal reforms, diversified financing, and increased development financing for the private sector, including an allocation of US$15 billion in development funds.
The AfDB has been a key partner in Egypt’s development efforts, providing funding for projects in water and sanitation, transport, and structural reform. Between 2022 and 2024, the bank financed 14 public and private sector operations in Egypt totaling US$1.46 billion.
More Read
The Abu Rawash wastewater project represents a broader push to improve the country’s water infrastructure, expand access to sanitation services, and enable the sustainable reuse of treated wastewater. By increasing treatment capacity and operational efficiency, the project will support environmental protection while providing a critical resource for agriculture in the Nile Delta region.
Officials said the combination of private sector support and infrastructure development aligns with Egypt’s long-term economic vision under the 2030 strategy. By strengthening private sector capabilities and modernising essential services, authorities hope to boost investment, create jobs, and improve living standards.
“The AfDB’s continued partnership reinforces our efforts to create a business-friendly environment while addressing infrastructure needs,” the ministry said. “These investments are key to achieving inclusive and sustainable growth.”
With these agreements, Egypt underscores its commitment to leveraging international development financing to stimulate private sector activity, advance structural reforms, and expand critical infrastructure, including water and sanitation, as the country seeks to achieve its 2030 economic and social development objectives.
