By: Arab news

Egypt’s mining sector is set to benefit from a new agreement with the European Bank for Reconstruction and Development aimed at supporting its development and growth.

The memorandum of understanding aims to strengthen frameworks for joint cooperation, contributing to the North African country’s objectives of maximizing the utilization of mineral resources, increasing the sector’s contribution to the national gross domestic product, and enhancing its attractiveness to local and foreign investments, according to a statement.

Egypt is pursuing an ambitious transformation of its mining sector, which currently contributes around 1 percent to national GDP. The government aims to raise this share to 5 to 6 percent in the medium term by improving the investment climate and unlocking the country’s substantial untapped mineral resources.

This strategy focuses on attracting greater foreign direct investment and positioning the mining industry as a key pillar of economic growth, supported by regulatory reforms and efforts to maximize the value of the country’s vast reserves of precious and base metals.

The newly released statement said: “The memorandum comes within the framework of leveraging international expertise in implementing programs to develop the Egyptian mining sector. This will be achieved through several initiatives aimed at aligning the sector’s legal and regulatory frameworks and governance principles with global best practices.”

It added: “The memorandum also includes studying incentives and procedures to attract mining companies operating in exploration and early-stage project development, thereby enhancing the economic viability of projects and maximizing their expected returns.”

Following the signing, Egypt’s Minister of Petroleum and Mineral Resources, Karim Badawi, said the partnership marks an important step for the mining sector and will support ongoing development efforts, with the ministry closely monitoring its implementation.

He added that the timing is significant ahead of the Egyptian Mining Forum in September, as it will help boost engagement among government entities, investors, and sector stakeholders.

Badawi also highlighted rapid progress in digital transformation within the mining sector’s technical systems, noting that further support is needed to sustain momentum.

He said parallel efforts are underway to upgrade infrastructure and incentives to create a more attractive investment environment and strengthen the competitiveness of the sector.

Managing Director for the Southern and Eastern Mediterranean region at the EBRD, Mark Davis, expressed appreciation for the efforts of Egypt’s Ministry of Petroleum and Mineral Resources in advancing the development of the mining sector.

He highlighted that ongoing reforms have strengthened the EBRD’s interest in cooperation with Egypt, given the sector’s significant potential and investment opportunities.

Davis said working groups have already begun identifying potential pilot projects and testing new technologies, with careful selection of opportunities to ensure optimal outcomes.

He added that the EBRD is keen to review the ministry’s investment vision and development plans, stressing that advancing the mining sector is a shared priority and that the bank will continue to support the process.