Mr. Mark Davis, Regional Director for the Southern and Eastern Mediterranean region at the European Bank for Reconstruction and Development (EBRD), affirmed that the recent period is witnessing a notable increase in the volume of investments initiated by banks, especially in the field of digital infrastructure, as these investments represent more than half of our financial portfolio and fall under tools such as trade finance, structured finance, and other financing tools.
This came during his speech at the conference organized by the Ministry of Planning, Economic Development, and International Cooperation under the title “Development Finance to Foster Private Sector-Led Growth & Jobs” held under the patronage and in the presence of H.E. Dr. Mostafa Madbouly, Prime Minister of Egypt, along with several ministers, the Federation of Chambers of Commerce, the Federation of Industries, business councils, development partners, and ambassadors.
He added that the current regional situation, with the challenges facing the region, negatively impacted economies and societies. However, we believe this is the right time to seize the opportunity for reconstruction and development.
He explained the importance of directing investments towards quick-impact projects, such as facilitating the transition of the private sector to renewable energy sources and providing a nurturing environment for these projects, explaining that in the medium term, the focus must be on structural reforms, as they send strong and clear signals to markets and investors, as these reforms include improving fiscal and monetary policies, facilitating the business climate, and opening the way for greater participation of the private sector, weather local and international.
They also include restructuring public institutions and expanding the scope of public-private partnerships, as seen in successful models such as airports and some governmental projects in Egypt, pointing to the cooperation between the the European Bank and the Egyptian government on programs to develop partnerships with the private sector to support priority development projects and provide greater fiscal space to invest in vital infrastructure.
Regarding the issue of energy security, the Davis confirmed that access to clean and secure energy is a foundation for economic and social stability, which requires significant investments in renewable energy projects and sustainable urban expansion, noting the Bank’s role in supporting a range of investment programs that focus on clean energy, sustainable infrastructure, digital transformation, as well as supporting small and medium-sized enterprises, which are a key driver of inclusive growth in the region.
He also referred to the ongoing project in solar energy and battery energy storage, which is considered one of the model projects in the field of renewable energy and represents a true qualitative leap as it supports the establishment and operation of a solar power plant with a capacity of 1 gigawatt, alongside a battery-based electricity storage system, making it one of the largest projects in Africa, and the project contributes to reducing reliance on energy imports, thereby easing pressure on foreign exchange reserves. It also supports Egypt’s vision to shift to 42% renewable energy by 2030.