The discussions focus on expanding the operations of both institutions in Egypt and issuing innovative financial instruments for the local and foreign private sector.
Minister Al-Mashat explores the utilization of the World Bank's one-stop guarantee platform.
The necessity for integration between the World Bank and its affiliated institutions to innovate new financial instruments that enhance private sector participation.
Maximizing cooperation with the IFC to bridge development gaps in priority sectors.
Continuing H.E.’s meetings with international financial institutions and development partners during the Annual Meetings of the World Bank Group in Washington, Dr. Rania A. Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, and Egypt's Governor at the World Bank, met with Mr. Makhtar Diop, Managing Director of the International Finance Corporation (IFC), and Mr. Hiroshi Matano, Vice President at the Multilateral Investment Guarantee Agency (MIGA), to discuss efforts to intensify cooperation in empowering the private sector through innovative financial tools.
International Finance Corporation (IFC)
During the meeting with the IFC, both parties discussed the ongoing cooperation portfolio and the efforts undertaken by the IFC in Egypt to enhance private sector empowerment. They explored future cooperation areas amid discussions on reforming the global financial structure and the need for innovative financing tools to achieve development in accordance with national priorities.
They reviewed the developments in the current cooperation portfolio, highlighting the IFC's contributions to injecting investments across vital sectors, thus supporting sustainable development and creating diverse job opportunities for youth in Egypt. The current cooperation portfolio amounts to approximately $2.3 billion across various sectors, including financial markets, agriculture, health, education, manufacturing, tourism, retail, construction and real estate, investment funds, and infrastructure. Additionally, the technical assistance portfolio includes programs valued at $24.8 million, directed to support numerous critical sectors such as renewable energy, private sector development, environment, social and environmental governance, finance and insurance, transportation and storage, healthcare, and chemicals.
The Minister of Planning, Economic Development, and International Cooperation emphasized the government's appreciation for the close partnership with the IFC, recognizing it as one of the largest multilateral financial institutions empowering the private sector. H.E. Dr. Al-Mashat emphasized the importance of leveraging the institution's extensive expertise to capitalize on opportunities across these sectors and bridge financing and development gaps in priority areas.
H.E. Minister Al-Mashat also affirmed the importance of integrating the World Bank, the IFC, and MIGA to provide innovative financial tools that empower member countries.
The meeting also addressed the developments in the strategic partnership between the government and the IFC to provide consulting services for the public offerings program, in addition to enhancing private sector participation in various sectors, including the establishment of seawater desalination plants and carbon markets. The discussion included an upcoming mission to Egypt to discuss the Capital Markets Development Program (J-CAP), aimed at assisting emerging economies in strengthening capital markets and enhancing investments in securities while supporting financial diversification in capital markets to attract local and foreign investments.
Multilateral Investment Guarantee Agency (MIGA)
H.E. Dr. Rania Al-Mashat also met with Mr. Hiroshi Matano, Vice President of MIGA, a member of the World Bank Group, where both parties discussed enhancing cooperation in empowering the private sector and expanding MIGA's operations in Egypt to provide more financing tools and mechanisms that open the door for local and foreign investments.
H.E. Minister Al-Mashat discussed with MIGA officials future projects in Egypt, particularly regarding the expansion of export guarantees and trade financing tools. In this regard, H.E. emphasized the importance of joint coordination to enhance communication between MIGA and local and foreign private sector institutions to meet their requirements.
The meeting also addressed the one-stop guarantee platform launched by the World Bank Group, which serves as a dedicated window for all types of guarantees available from the agency and international financial institutions.
It is noteworthy that MIGA has provided guarantees worth $500 million for the private sector since 2012, stimulating foreign direct investments and supporting 15 projects in sectors such as energy, infrastructure, manufacturing, and others.