Egypt’s airport sector is set to experience significant modernization and expansion as part of a new agreement with the International Finance Corporation (IFC). The deal, which aims to modernize infrastructure, boost capacity, and attract foreign investment, is expected to increase private sector involvement in the industry.
The signing ceremony, held at the government’s new administrative capital, was overseen by Prime Minister Mostafa Madbouly. The agreement was formalized by Planning Minister Rania Al-Mashat, Civil Aviation Minister Sameh Al-Hefny, and IFC Vice President for Africa Sergio Pimenta.
This partnership builds on Egypt’s ongoing collaboration with the World Bank’s private sector arm, expanding advisory services to support the country’s privatization efforts.
“The agreement signed today… is an extension to strengthen cooperation with the International Financing Corp. to provide advisory services for the governmental proposals program,” Madbouly stated in a message posted on the government’s official Facebook page. He emphasized that the IFC would offer consultative services aimed at increasing the private sector’s participation in the Egyptian airport market.
“This is an important partnership that will contribute to the improvement of the services provided and the capacity of Egyptian airports,” Madbouly added.
The deal aligns with Egypt’s broader strategy to leverage the IFC’s expertise in attracting both local and international investments, supporting national agencies, and promoting public-private partnerships, according to the Prime Minister.
Planning Minister Al-Mashat highlighted that the government’s focus is on expanding private sector partnerships in the airport sector, coinciding with the growth of tourism, transport, and storage sectors. She pointed to strong growth during the first quarter of the current financial year, noting that private sector investments now account for 63 percent of total investments. This increase is driven by the surge in tourism, particularly due to Egypt’s preparations for the opening of the Grand Egyptian Museum, which has also boosted airport traffic.
Al-Mashat also emphasized that the government has laid the foundation for these steps by enhancing macroeconomic stability, implementing measures to control public finances, enacting structural reforms to stimulate the private sector, and creating a more favorable investment climate.
Civil Aviation Minister Al-Hefny stated that the ministry, under the agreement, will work to develop a strategic plan that identifies airport projects suitable for private sector partnerships.
IFC’s Vice President for Africa, Sergio Pimenta, explained that improving Egypt’s airport infrastructure through public-private partnerships will stimulate economic growth. He added that the initiative will help attract global investors to develop modern, high-efficiency airports, further strengthening Egypt’s position as a global hub for travel and trade.
Egypt has seen considerable financial inflows from the IFC, with $900 million in investments between July 2023 and May 2024. Al-Mashat highlighted this during the “IFC Day in Egypt” event in May, underscoring the sustained momentum of investment into the country’s economy.
