● H.E. Dr. Al-Mashat: “Investment in infrastructure to provide essential services to citizens is a cornerstone of economic development and achieving the SDGs”.

● Emerging economies face development gaps that necessitate advancing developmental cooperation and concessional financing through international financial institutions

● Expanding blended finance mechanisms and engaging the private sector are national and international priorities to close the infrastructure financing gap

● We commend the collaboration between the New Development Bank, the Asian Infrastructure Investment Bank, and the African Development Bank in expanding innovative financing tools for member countries

● President of the Asian Infrastructure Investment Bank: International financing institutions are called to rethink their financing methodologies and emphasize the need to reduce costs and burdens associated with obtaining finance

● Senior Vice President of the African Development Bank stresses the importance of simplifying approval processes and timeframes for financing for governments and the private sector

During the annual meetings of the New Development Bank (NDB) of the BRICS group in South Africa, H.E. Dr. Rania A. A. Al-Mashat, Minister of Planning, Economic Development, and International Cooperation and Egypt’s Governor at the New Development Bank, participated in a panel discussion titled “Development Finance Institutions at the Forefront of Infrastructure Investments.” The discussion was attended by Mr. Jin Liqun, President of the Asian Infrastructure Investment Bank, and Ms. Swazi Tshabalala, Senior Vice President of the African Development Bank Group, with Mr. Bin Han, Director General of the Private Sector and Non-Sovereign Guaranteed Transactions Department at NDB, serving as the moderator.

In her speech, Al-Mashat highlighted the significance of the NDB’s annual meetings held in South Africa and the developmental model implemented by the country. She noted that this reflects the considerable diversity in development models applied by the bank’s member countries, which is also evident in the NDB’s interactions with other multilateral development banks to finance various projects.

H.E. Minister Al-Mashat emphasized the importance of infrastructure in connecting markets, boosting economic growth, and improving citizens' quality of life.

H.E. Dr. Al-Mashat explained that the infrastructure needs in emerging markets and developing countries are immense, requiring trillions of dollars annually to address these needs in various sectors such as water, sanitation, renewable energy, and transportation. This underscores how infrastructure development directly impacts the quality of life of citizens and drives economic advancement.

H.E. Minister Al-Mashat also noted that as infrastructure project demands increase, investment costs rise, with the infrastructure financing gap in Africa alone estimated at around $100 billion. Public resources are no longer sufficient, and in Sub-Saharan Africa, infrastructure financing needs account for 7% of GDP, with higher percentages in other regions.

H.E. Dr. Al-Mashat continued, "According to the World Bank, low and middle-income countries need trillions of dollars to bridge these gaps. We must also consider the technological gap, as the inability of middle and low-income countries to keep pace with technological progress leads to widening development financing gaps and limits their ability to achieve desired progress." Additionally, the Minister addressed the insufficiency of climate finance.

The Minister pointed out that while climate change imposes harsh realities and unprecedented challenges, there is a significant disparity in accessing finance, which multilateral development banks are working to overcome and address, particularly in Africa.

H.E. Minister Al-Mashat stated that attracting investment for climate projects requires substantial effort, involving development banks, governments, the private sector, philanthropic organizations, and other financing sources that can mitigate risks for the private sector.

H.E. Dr. Al-Mashat explained that the shared vision of the New Development Bank, the Asian Infrastructure Investment Bank, and the African Development Bank can drive practical solutions for climate finance and reduce project implementation costs through innovative financing tools, thereby advancing from climate pledges to implementation. She also discussed national efforts to enhance climate finance solutions, including hosting COP27 and working with development partners to launch the "Sharm El-Sheikh Guidebook for Just Financing," which aims to improve climate finance both in quantity and quality and address gaps and disparities between countries. This should be a focus for international institutions and multilateral development banks to create a sustainable approach to climate projects and provide more financing tools.

Moreover, the Minister emphasized the importance of national ownership and clear strategies for implementing each country's priorities, as well as the integration between climate and development efforts.

Al-Mashat concluded by underscoring the importance of leveraging the BRICS group and its New Development Bank to enhance investment flows among member countries to meet the aspirations of various nations. She also highlighted the increased cooperation and integration among multilateral development banks, which was not previously observed.

H.E. Minister Al-Mashat added, "We, as countries, must also play our part in advancing this cooperation by presenting transparent and clear investment projects capable of attracting blended finance and private investments."

The President of the Asian Infrastructure Investment Bank stated that investments in sustainable infrastructure are essential for achieving inclusive and resilient growth and meeting global climate goals. He noted that, given the increasing gap in infrastructure financing, development finance institutions need to rethink their approaches to rapidly expand infrastructure financing in developing economies, provide finance swiftly, and mobilize the necessary technical and financial resources for efficient project implementation. He also addressed the importance of cooperation among multilateral development banks through co-financing and the need to reduce transaction costs.

Meanwhile, the Senior Vice President of the African Development Bank highlighted that without expanding infrastructure projects, achieving sustainable development in Africa and the African Union Agenda 2063 would be extremely challenging. She noted that the bank recognizes that addressing the infrastructure gap in Africa requires partnership and cooperation. She emphasized that accelerating infrastructure development will not occur without reconsidering the complex approval processes within international financing institutions and development banks, stressing the need to simplify and reduce approval times to enhance benefits for government and private sector clients.