IFC committed to supporting Egypt transition to private-sector-led economy
As Egypt charts a path toward greater economic resilience, the role of strategic partnerships and private sector engagement has never been more critical.
Asset monetization and infrastructure development are emerging as cornerstones of the country's transformation agenda, and global institutions are stepping in to support and guide this transition.
Since beginning operations in Egypt nearly 50 years ago, IFC has invested and mobilized almost $10 billion in investment projects, with an advisory portfolio amounting to $25 million in the country.
Diop's insights highlighted the pivotal reforms shaping Egypt’s economic future and the opportunities they create locally and across the African continent.
Ahram Online: What were the key highlights of your meeting with the Egyptian president regarding the asset monetization programme?
Makhtar Diop: The meeting highlighted a crucial phase in Egypt's economic strategy, focusing on the asset monetization programme.
The president reiterated the government's commitment to this initiative, emphasizing its potential to invigorate the economy.
We discussed the proposal to begin with the monetization of 11 airports, a strategic move to optimize state assets. We plan to launch tenders for the first airport by the end of 2025, marking a significant step forward.
Our conversation underscored the benefits of a portfolio approach. This approach allows for the simultaneous management of multiple assets, thus minimizing the risks associated with dependence on a single transaction.
By successfully executing the first transaction, we aim to instill confidence in the investment community and illustrate the viability and robustness of the broader monetization programme amid fluctuating political and economic landscapes.
We also discussed how to deepen collaboration between Egypt and the African countries.
President El-Sisi emphasized the importance of African collaboration in addressing various challenges such as economic development, security, and climate change. His leadership aims to strengthen ties within the continent through initiatives that promote investment, trade, and partnerships among African nations.
AO: The IFC is assigned as the technical advisor to the Egyptian government for the planned offering of 11 airports. Could you please expand on this?
MD: Egypt's 11 airports play a vital role in the nation's connectivity, facilitating domestic and international travel and serving as critical gateways for tourism, trade, and investment.
The airports are strategically located to enhance access to major cities, archaeological sites, and scenic destinations, contributing to Egypt's economy, which heavily relies on tourism.
Additionally, improved airport facilities enable better cargo transportation, boosting trade activities.
The airports are essential for Egypt’s thriving tourism sector, significantly contributing to the economy. They provide access to historically rich areas like Cairo, Luxor, and Aswan, as well as coastal destinations such as Sharm El-Sheikh and Hurghada.
By increasing flight availability and improving facilities, these airports can attract more international visitors, thereby enhancing economic revenue from tourism, creating jobs, and supporting local businesses.
Infrastructural improvements such as modernizing terminal facilities, expanding runways, and upgrading baggage handling systems are crucial for enhancing airport efficiency.
Investments in technology, like automated check-ins and advanced security measures, can streamline passenger processing