- Egypt aims to secure a $300 million loan from the AfDB through FY2023/24.
- The programme aims to expand the area of state-owned lands dedicated to renewable energy investments to 30,000 square kilometres by 2025.
The African Development Bank (AfDB) has approved a $131 million loan to Egypt to bolster its efforts to stimulate the private sector and diversify its green development. This follows the COVID-19 pandemic and the ongoing conflict in Ukraine. A statement by AfDB states that the loan targets enhancing the business environment and fortifying competition frameworks. It also targets promoting key productive sectors such as manufacturing and agribusiness and facilitating the transition to a greener economy.
The bank expects the injection of funds to positively impact private investment, raising it from 3.3 per cent of GDP in FY2021/22 to 4.3 per cent in FY2024/25. Furthermore, the loan aims to increase the value of Egypt’s manufacturing sector, from 14.2 per cent of GDP in 2021 to a record 17 per cent by 2025.
One of the significant programme objectives is to expand the area of state-owned lands dedicated to renewable energy investments to 30,000 square kilometres by 2025. Egypt aims to secure $300 million from the AfDB through FY2023/24. This will help Egypt achieve its goal of securing $3 billion in financing by the end of 2023 to bridge an estimated $17 billion gap over the next four years.