The World Bank Group has mobilised nearly $6.7bn in private capital for Egypt since fiscal year (FY) 2022, supporting investments in renewable energy, port infrastructure, affordable housing and entrepreneurship, according to the group.
Private capital mobilisation involves attracting funding from private-sector investors to finance development projects, helping bridge the gap between governments’ development priorities and the limitations of public financing. The World Bank Group uses financing, guarantees, partnerships and risk-mitigation mechanisms to attract additional investment alongside its own resources.
One of the key examples is the group’s partnership with AMEA Power, which supports several renewable energy and battery storage projects in Egypt.
The International Finance Corporation (IFC) provided approximately $289.9m in financing and blended finance resources, mobilising more than $1bn from private-sector investors and partners for four projects: the Abydos 1 and Abydos 2 solar power plants, the Amunet wind power project, and Egypt’s first utility-scale battery energy storage system.
The projects are expected to expand Egypt’s supply of clean and reliable electricity. Abydos 1 and Amunet are expected to provide electricity to around one million people, while Abydos 2 is projected to create more than 4,000 construction jobs.
Meanwhile, the Multilateral Investment Guarantee Agency (MIGA) provided a $1.48bn guarantee covering AMEA Power’s portfolio. The guarantee supports the four projects and two additional projects in Egypt, as well as other projects across the Middle East, Africa and beyond.
The World Bank Group has also supported the development of Egypt’s port and logistics infrastructure through the multipurpose terminal in Safaga on the Red Sea, which is being developed by AD Ports Group.
The IFC provided $61m in loans and mobilised up to $158.9m in private capital for the project. The terminal is expected to handle around 450,000 containers annually, improve the movement of goods and generate direct and indirect employment in trade, construction, maritime services and logistics.
In the housing sector, Egypt’s Inclusive Housing Finance Programme has helped approximately 750,000 low-income households access affordable homes through the mortgage finance market.
The programme enabled the government to provide down-payment assistance, making monthly mortgage instalments more affordable for lower-income households and allowing public and private banks to extend financing to borrowers they had previously been unable to serve.
For every EGP100 in public subsidy, commercial banks contributed EGP650 in mortgage financing. Government support worth $441m helped unlock a total of $2.88bn in private mortgage financing. The programme also strengthened Egypt’s housing finance market and supported an estimated 3.8 million jobs.
The World Bank Group has also supported entrepreneurship and job creation through its project to stimulate entrepreneurship for job creation, which attracted more than $200m in private investment and approximately $450m in foreign direct investment (FDI).
The project supported around 150 startups and high-growth companies, helping innovative businesses expand, create jobs and contribute to economic growth.
It generated an estimated 130,000 jobs, with women accounting for 40% of them. Its broader support reached more than 200,000 business owners and contributed to approximately 500,000 jobs nationwide.
These investments form part of the World Bank Group’s partnership with Egypt to promote green, resilient and inclusive development.
Under its Country Partnership Framework for fiscal years 2023-2027, the group is focusing on three interconnected priorities: creating more and better private-sector jobs, improving human capital outcomes, and strengthening resilience to economic and environmental shocks.