AfDB to provide Egypt with $170M for private sector, budget support

Updated 1/19/2026 1:12:00 PM

Arab Finance: Egypt and the African Development Bank (AfDB) signed a $170 million agreement for the second phase of the Private Sector Development and Economic Diversification Financing Program (PSD-EDSP) to support the private sector and promote economic diversification, according to a statement.

Minister of Planning and Economic Development and International Cooperation Rania Al-Mashat penned the deal with Abdourahmane Diaw, Country Manager at AfDB.

The financing is intended to support the state budget and advance the implementation of structural reforms.

The second phase follows the first phase of the program, valued at $131 million, which was approved by parliament in December 2024.

The two sides also signed a grant worth $400,000 (EGP 19 million) to drive the sustainability of the Abu Rawash wastewater treatment plant.

This initiative is part of the ministry’s efforts to maximize economic relations with multilateral development partners and integrate external financing with national efforts to implement the National Structural Reform Program, within the framework of the "National Narrative for Comprehensive Development."

Al-Mashat highlighted the importance of the grant allocated to the Abu Rawash wastewater treatment plant, one of the largest wastewater treatment plants in the world. The grant aims to enhance the plant's environmental sustainability and operational efficiency.

Last May, the government signed a financing agreement with the AfDB for the fourth phase of the Abu Rawash wastewater treatment plant.

It is worth noting that AfDB previously announced around $9.5 billion in concessional development financing to support Egypt's budget from 2023 to 2026.