EGYPT Trends and Developments Contributed by: Nermine Tahoun, Tahoun Law Firm
and safety, such as wastewater treatment plants and emergency response systems. The role of local SMEs in PPPs Small and medium-sized enterprises (SMEs) are playing an increasingly important role in Egypt’s PPP ecosystem. The government is actively encouraging the participation of local SMEs in PPP projects through subcontracting opportuni - ties and capacity-building programs. For exam - ple, in the construction of the New Administra - tive Capital, local SMEs were involved in various aspects of the project, from supplying materials to providing specialised services. By involving SMEs, the government is not only promoting economic inclusivity but also foster - ing innovation and competition. However, chal - lenges endure, such as limited access to financ - ing and technical expertise. To address these issues, the government is working with inter - national organisations to provide training and financial support to local SMEs, enabling them to compete more effectively in the PPP market. The future of PPPs in Egypt: a vision for 2030 Looking ahead, Egypt’s PPP landscape is poised for significant growth and transforma - tion. The government’s Vision 2030 strategy out - lines ambitious goals for infrastructure develop - ment, economic diversification, and sustainable growth. PPPs are expected to play a central role in achieving these objectives, particularly in sec - tors such as renewable energy, transportation, and digital infrastructure. One of the key priorities is to create a more investor-friendly environment by simplifying regulations, improving transparency, and reduc - ing bureaucratic hurdles. The government is also exploring the use of performance-based con - tracts, which tie payments to the achievement
of specific outcomes, such as improved service delivery or reduced environmental impact. In addition, Egypt is looking to position itself as a regional leader in PPPs by sharing its experi - ences and best practices with other African and Middle Eastern countries. This includes hosting international conferences and workshops on PPPs, as well as participating in cross-border initiatives that promote regional integration and cooperation. Lessons learned from global PPP models Egypt can draw valuable lessons from success - ful PPP models in other countries. For exam - ple, India’s PPP framework has been widely praised for its emphasis on transparency and stakeholder engagement. The country’s use of Viability Gap Funding (VGF), where the govern - ment provides financial support to make pro - jects commercially viable, could be adapted to the Egyptian context. Similarly, South Africa’s Renewable Energy Inde - pendent Power Producer Procurement (REIPPP) programme offers insights into how competitive bidding processes can drive down costs and attract private investment. By studying these global models, Egypt can refine its own PPP framework and address some of the challenges it currently faces. The role of civil society in PPPs Civil society organisations (CSOs) are increas - ingly playing a role in shaping Egypt’s PPP land - scape. These organisations act as watchdogs, ensuring that PPP projects are implemented in a transparent and socially responsible manner. For example, CSOs have been instrumental in advo - cating for the inclusion of environmental and social safeguards in PPP contracts, particularly in sectors such as energy and transportation.
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