On Wednesday 5 February, the Egyptian government signed two agreements with the Islamic Development Bank Group, securing USD 1.6 billion (EGP 80 billion) in funding dedicated to trade financing and the development of the private sector.
The agreements were formalized during a ceremony attended by prominent officials, including Kamel Al-Wazir, Deputy Prime Minister for Industrial Development, and Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation.
The financing package consists of USD 1.5 billion (EGP 75 billion), allocated to address pressing needs within the country. Of this amount, USD 800 million (EGP 40 billion) is dedicated for the Egyptian General Petroleum Corporation (EGPC) to secure energy and petroleum supplies.
Meanwhile, USD 700 million (EGP 35 billion) will be directed to the General Authority for Supply Commodities to enhance food security for the population.
Additionally, the Islamic Corporation for the Development of the Private Sector (ICD) has committed USD 100 million (EGP 5 billion) to support financial institutions in funding small and medium-sized enterprises (SMEs) and larger private sector companies.
Beyond direct financing, the agreements emphasize the importance of investment and advisory services in Islamic Sukuk financing for both public and private sector entities.
Capacity-building programs will also be implemented to enhance expertise in Islamic finance and to diversify funding sources.
Salm Sinbel, CEO of the International Islamic Trade Finance Corporation (ITFC), underscored the organization’s long-standing commitment to Egypt, having provided USD 18.7 billion (EGP 940 billion) in financing since 2008.
Looking ahead to 2025, the ITFC plans to introduce new initiatives aimed at empowering women, youth, micro-businesses, and exporters.
With a focus on enhancing private sector participation and supporting critical sectors, this funding is poised to address both immediate challenges and long-term economic goals according to the Ministry of Planning, Economic Development.
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