The government of Egypt has inked a deal with the International Finance Corporation (IFC), the private sector arm of the World Bank, to increase private sector participation in the country’s airport sector. The agreement was signed at the government headquarters in the New Administrative Capital, with Prime Minister Mostafa Madbouly overseeing the ceremony.
Minister of Planning and Economic Development and International Cooperation, Rania Al-Mashat, along with Minister of Civil Aviation, Sameh El-Hefny, and IFC Vice President for Africa, Sergio Pimenta, signed the agreement. The partnership aims to enhance airport services and capacity through strategic involvement from private investors.
Strategy
Prime Minister Madbouly highlighted that the agreement builds on ongoing cooperation with the IFC, which has been providing advisory support for Egypt’s initial public offering (IPO) programme. He stressed the government’s commitment to fostering this collaboration to modernize airport infrastructure, improve efficiency, and create new investment opportunities. By strengthening public-private partnerships, the government aims to attract both local and international investors, ultimately improving the quality of airport services and positioning Egypt as a key hub for global travel and trade.
Minister Rania Al-Mashat emphasized that the agreement complements the ongoing partnership with the IFC on Egypt’s IPO programme, initiated in June 2023. This collaboration supports the government’s State Ownership Policy, which seeks to expand private sector involvement in driving economic growth. Al-Mashat stated that the government is focused on restoring confidence in the economy through structural reforms, fiscal adjustments, and measures to stimulate foreign direct investment (FDI). Strengthening the role of private investors is part of a broader strategy to improve the business climate and increase economic resilience.
Minister Sameh El-Hefny explained that the partnership with the IFC will help identify promising airport projects suitable for private sector participation. This initiative is part of a strategic plan to modernize Egypt’s airport infrastructure and improve operational efficiency. Sergio Pimenta, IFC’s Vice President for Africa, remarked that enhancing Egypt’s airport network through public-private partnerships will create new economic opportunities and strengthen the country’s role as a global transport and trade center.