Dr. Rania A. Al-Mashat, Minister of Planning, Economic Development, and International Cooperation:
Egypt is one of the largest operational countries for the IFC through investments and financing in the private sector.
The increase in IFC capital enables the institution to provide more financing for the private sector.
The escalation of global challenges necessitates that international institutions enhance their resources and provide more financing for development.
IFC's investments in Egypt span several priority sectors that support inclusive and sustainable growth and green transformation.
We are working with the IFC to expand private sector participation in bridging sectoral development gaps.
The state's initiatives to encourage investment and create space for the private sector support the expansion of the IFC's operations in Egypt.
The House of Representatives , in its general session held today, approved the subscription of the Arab Republic of Egypt to the increase of the International Finance Corporation's (IFC) capital, the largest multilateral institution financing the private sector and part of the World Bank Group, with a share of 28,940 shares, totaling $28.9 million.
This decision aligns with the historic and close relations between the Arab Republic of Egypt, as a founding member of the World Bank Group and its institutions, and enhances its role in supporting the missions of the IFC, which is one of the largest international multilateral financing institutions supporting the private sector in emerging economies and developing countries.
In H.E.’s comments, Dr. Rania A. Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, emphasized that Egypt is a founding member of the World Bank Group and its associated institutions, including the IFC, which specializes in financing the private sector in developing countries and emerging economies. H.E. Minister Al-Mashat noted that the increase in capital enables the institution to direct more funding to private sector companies.
H.E. Dr. Al-Mashat pointed out that the consecutive global challenges, exacerbated by geopolitical tensions in the region, compel international financing institutions and multilateral development banks to enhance their resources to expand financing for development and support the efforts of developing and least developed countries to catch up with global development.
The Minister discussed the long-term partnership with the IFC in supporting and empowering private sector institutions in Egypt through concessional development financing, direct investments, and technical support programs. Additionally, H.E. Dr. Al-Mashat highlighted the strategic partnership with the government to implement the State Ownership Policy Document through consulting services for the government offerings program, aiming to build a more competitive and inclusive economy based on partnership with the private sector as a key driver of economic growth.
H.E. Dr. Al-Mashat noted that the IFC plays a vital role in enhancing the partnership between the public and private sectors, in addition to expanding private sector participation in priority sectors through technical support services and incentivizing private investments. This includes the comprehensive health insurance program, where the IFC provides technical services to the Comprehensive Health Insurance Authority to enhance the private sector's role in delivering services to beneficiaries, as well as consulting services for water desalination projects, enabling the government to expand the implementation of such projects.
H.E. Minister Al-Mashat affirmed that the measures being taken by the state to build a competitive economy that attracts investments and creates opportunities for the private sector will greatly benefit private companies and expand avenues for cooperation with the IFC.
Additionally, H.E. Dr. Al-Mashat addressed the IFC's investments in the Benban solar power project, one of the largest projects of its kind in the region, and its role in supporting the country platform for green projects under the “NWFE” program. The Minister emphasized that the investments and contributions of the IFC to private sector companies in Egypt are creating job opportunities and enhancing employment efforts and financial inclusion.
It is noteworthy that the total IFC investments in Egypt exceed $9 billion, while the current portfolio is approximately $2.3 billion, distributed across trade finance, the financial sector, health, education, industry, agricultural business, tourism, retail, and other priority sectors. The consulting and technical support portfolio amounts to about $24.8 million.