Dr. Rania Al-Mashat:
The agreement enhances the green transformation in the tourism sector and supports its contribution to economic growth rates.
Structural reform measures and macroeconomic stability have contributed to increased investments from international partners in Egypt’s private sector.
H.E. Dr. Rania A. Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, and Egypt's Governor at the World Bank Group, witnessed the signing of an agreement between the International Finance Corporation (IFC) and Orascom Development Egypt. The agreement, which includes a financing package of USD 155 million, aims to promote the green transformation of Egypt’s tourism sector by improving energy and water efficiency and reducing greenhouse gas emissions (GHG) at several hotels in El Gouna, located on the Red Sea.
The signing took place during the visit of Mr. Sérgio Pimenta, IFC Vice President for Africa, to Egypt, in the presence of Mr. Omar El-Hamamsy, CEO of Orascom Development. The agreement was signed by Mr. Ashraf Nasim, CFO and Board Member of Orascom Development Egypt, and Cheikh Oumar Sylla, IFC Regional Director for North Africa and the Horn of Africa.
In H.E.’s speech, Dr. Rania Al-Mashat clarified that this agreement represents more than just financial support; it marks the beginning of a new and sustainable path for the important tourism sector in Egypt. The focus will be on prioritizing energy and water efficiency and reducing harmful emissions, in collaboration with the private sector. H.E. Dr. Al-Mashat highlighted that the financing will allow the company to reduce energy consumption in hotels by up to 50% from non-renewable energy sources and reduce water usage by at least 20%. This will enhance the tourism and hotel sector’s contribution to economic growth.
H.E. Minister Al-Mashat added that this partnership signifies a shared commitment to strengthening environmental resilience in Egypt and is a testament to the positive impact that innovative financing tools can have when paired with a commitment to sustainability.
H.E. Dr. Al-Mashat noted that El Gouna has long been a leader in sustainable tourism, setting standards for environmentally friendly development. H.E. emphasized that through this investment, the city will strengthen its position as a global sustainable tourism destination, not only within Egypt but also across the region. Furthermore, implementing advanced energy and water conservation measures sets a new benchmark for sustainable business practices and addresses the critical challenges Egypt faces in preserving water resources and achieving energy efficiency.
The Minister also emphasized that this collaboration aligns perfectly with Egypt's development vision and the National Climate Change Strategy 2050. H.E. Dr. Al-Mashat clarified that the vision aims to build a diversified, resilient economy and transition towards sustainable and energy-efficient systems. She stated that supporting environmentally friendly projects like the one in the agreement fosters economic progress and adheres to climate goals by reducing environmental footprints and paving the way toward carbon neutrality.
H.E. Minister Al-Mashat also pointed out that this partnership reinforces Egypt’s commitments under its Nationally Determined Contributions (NDCs), with the goal of reducing greenhouse gas emissions by 33% in the energy sector, 65% in the oil and gas sector, and 7% in the transport sector by 2030. These targets are supported by specific projects and initiatives, such as expanding renewable energy capacity and improving energy efficiency.
It is worth noting that the tourism and hotel sector was one of the largest contributors to growth rates in the fiscal year 2023/2024, with a contribution of 9.9%.