Cairo: Egypt is emerging as a leading investment destination, driven by its strategic advantages and robust private sector, according to IFC regional director for North Africa and the Horn of Africa, Cheikh Oumar Seydi. With a population exceeding 110 million, diverse resources, and a skilled workforce, Egypt stands out as an attractive market for foreign investors.
According to State Information Service Egypt, the International Finance Corporation (IFC) has set a target of investing at least $1 billion annually in Egypt, with the potential to exceed this amount depending on market dynamics. The current fiscal year is expected to set a record for IFC investments, projected at around $1.5 billion, adding to a decade-long investment total of $10 billion.
Seydi commended the Egyptian government's efforts to enhance the private sector's role in the economy through initiatives like the state offerings program. By listing state-owned companies on the stock exchange, the program aims to improve efficiency and service quality. This initiative highlights the private sector's growing role as a key partner in Egypt's economic development.
On the topic of economic reforms, Seydi noted significant progress in trade sector development and tax system modernization. Marking 50 years of IFC operations in Egypt, he emphasized the institution's focus on job creation, with about 1.3 million people entering the labor market annually. Key sectors for job generation include tourism and manufacturing, along with value chain development.
In terms of infrastructure and energy investments, Seydi pointed to the Benban solar complex as a flagship project. This initiative has significantly contributed to Egypt's position in global private-sector energy production, with IFC being the main investor in the first 13 independent power producer projects within the complex.
IFC continues to finance major energy projects in Egypt, including the Abydos solar plant in Kom Ombo and the Amunet wind farm in Ras Ghareb, developed by AMEA Power. These projects, with a combined capacity of 1,000 megawatts, are complemented by battery energy storage projects of similar scale. Egypt's commitment to increasing renewable energy's share to 42% by 2030 positions it as a leader in Africa alongside South Africa.
Seydi also highlighted IFC's role in climate finance, supporting Egypt's first private-sector green bond issuance and sustainable bond efforts. Future focus will be on expanding green financing to small and medium-sized enterprises in cooperation with the Central Bank of Egypt under the global '30x30' initiative.
In the financial sector, IFC has extended credit lines to Egyptian banks for on-lending to SMEs, particularly those led by women and climate-focused businesses. It has also expanded non-banking activities through partnerships in leasing, microfinance, and healthcare investments.
Seydi emphasized IFC's active involvement in fintech and venture capital, citing Egypt's strong innovation ecosystem. A recent investment of around $13 million in Egyptian e-commerce platform Bosta underscores IFC's commitment to scalable business models across African markets.
With Cairo serving as a key regional hub for IFC in Africa, the local team comprises about 120 staff, 60% of whom are women and more than 65% Egyptian. This reflects the strength of IFC's local presence and commitment to complement rather than compete with local banks and the private sector.