(MENAFN- Daily News Egypt) The Egyptian House of Representatives has approved an agreement with the African Development Bank (AfDB) for $131m to finance the first phase of the Private Sector Development and Economic Diversification Program, a component of the country's general state budget support. The decision, President No. 383 of 2024, was ratified during a general session of the parliament.

Rania Al-Mashat, the Minister of Planning, Economic Development, and International Cooperation, said the agreement with the African Development Bank complements existing efforts with international partners to implement the national structural reform programme, support the budget, and boost private sector development. The approval follows the recent parliamentary nod to the first phase of a macroeconomic support mechanism with the European Union, valued at one billion euros.

Al-Mashat explained that the Private Sector Development and Economic Diversification Program has two primary objectives. The first is to encourage private sector investment by improving the investment climate, strengthening the competitive framework and ensuring fair trade. The second is to support economic diversification and the green transition by strengthening vital productive sectors, particularly industry and agriculture, and supporting the shift towards a green economy.

She said these initiatives are in line with the government's ongoing actions to improve the investment climate and pursue economic and structural reforms. Under the program's first component, measures have included the establishment of the Supreme Investment Council, amendments to Investment Law No. 72 of 2017 to introduce new incentives and more flexible criteria for investment projects, the cancellation of tax and fee exemptions for state-owned institutions engaged in investment activities and the creation of the Egyptian Intellectual Property Office.

Regarding the second component, which focuses on supporting economic diversification and the green transition, several reforms have been enacted, including the issuance of a law to regulate unlicensed industrial facilities and increasing the land allocated for renewable energy investments, with 26,000 square kilometres of state-owned land designated for such purposes.

Al-Mashat emphasised that improving macroeconomic stability and implementing structural reforms are central to the Ministry of Planning, Economic Development, and International Cooperation's work. She stated that Egypt is working to achieve sustainable and inclusive development through the concerted efforts of its various institutions, guided by integrated strategic plans. She also affirmed the country's commitment to continuing structural reforms to improve the business environment and drive the green transition.

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