UK's British International Investment Urges Egypt to Boost Private Sector Growth
British International Investment plans to ramp up investments in Egypt, emphasizing the need for Cairo to create a more equitable environment for private sector growth.
In a strategic move aimed at bolstering economic growth, British International Investment (BII), the UK government's overseas development finance body, has announced plans to increase its financial footprint in Egypt. This comes with a call for Egyptian authorities to create a more balanced playing field between state-owned enterprises and the private sector.
BII, which exclusively invests in private ventures, currently holds £850 million ($1.1 billion) in various projects throughout Egypt. Leslie Maasdorp, BII’s Chief Executive, highlighted Egypt as the organization’s largest investment destination in Africa, a decision rooted in strategic design. During his recent visit to Cairo, Maasdorp outlined plans to further enhance investment activities in the country.
To date, BII’s investments have largely supported climate finance initiatives, with over $300 million allocated to projects such as a 1.1-gigawatt wind farm in the Gulf of Suez and a solar and battery storage facility developed alongside Norway's Scatec. The institution aims to invest a total of £5 billion ($6.61 billion) across Africa over the next five years, mobilizing an additional £4 billion from private investors.
While Maasdorp refrained from setting specific investment targets for Egypt, he assured that BII would continue to seek viable opportunities. Egypt's recent economic reforms under an $8 billion IMF program have been promising, including the adoption of a flexible exchange rate and commitments to reduce state intervention. Maasdorp commended Egypt's 2024 exchange rate liberalization, viewing it as a robust structural change. However, he emphasized that fostering clear economic parity between state and private actors is crucial for attracting more investors.
Maasdorp believes that the single most impactful action Egypt could take to enhance investment appeal is private sector reform. He stated, “Levelling the playing field, if you ask me to identify one intervention, it could be that one.” According to Maasdorp, the private sector remains a vital engine for growth, development, and prosperity, and a fair competitive environment is essential for it to thrive.
As BII continues to explore investment opportunities in Egypt, the focus remains on creating a more equitable landscape where private enterprises can compete and grow alongside state-owned entities. This approach not only promises to boost economic growth but also aligns with BII's broader mission to drive sustainable development across the African continent.