Egypt's private sector plays a crucial role in the nation's economic growth amid evolving global and domestic conditions. The sector is central to innovation and job creation, which is increasingly important as Egypt's working-age population grows by an average of 1.2 million annually over the past five years. Despite its potential, structural imbalances and global shocks have hindered the sector's contribution to economic prosperity, with private investment averaging only 6.3% of GDP over the last decade.
The Egyptian government has set ambitious targets for 2030, aiming to increase private investments' share to 65% of total investments, attract US$60 billion in foreign direct investment (FDI), and boost exports to US$145 billion annually. Countries like Morocco and Turkey have achieved similar goals through export-led growth strategies.
To foster private sector growth, Egypt has initiated measures such as unifying the exchange rate and reforming business legislation. Norhan El Gabaly from the Egyptian Junior Business Association stated that reducing policy uncertainty is vital for creating conducive conditions for private enterprises: "This can be achieved in various ways, including by adjusting existing investment laws."
The World Bank Group highlights opportunities within Egypt's agribusiness, manufacturing, and ICT sectors. Their 2020 Country Private Sector Diagnostic (CPSD) report suggests reforms to enhance regulatory environments and competition while streamlining trade barriers.
The World Bank supports initiatives like improving border control efficiency and enhancing commercial justice systems. Additionally, it aids in implementing state-owned enterprise policies through governance improvements and financial management assistance.
Since 2020, IFC has committed over US$3.7 billion in support of Egypt’s financial sector development. MIGA’s risk mitigation instruments have facilitated projects like Benban Solar Park by attracting significant private investment.
Egypt's strategic location and youthful population provide a foundation for reviving its private sector dynamism. The World Bank Group remains committed to supporting these efforts through financing, advisory services, and knowledge-sharing initiatives aimed at sustainable growth.