Governance

Transparency for Effectiveness

Dialogue creates more than just verbal ties, but also common destinies.

Transparency for Effectiveness

To ensure no one is left behind, the Government of Egypt has set a targeted approach to openness, transparency and participation, through constructive dialogue with all stakeholders, including civil society in the sphere of development cooperation. The Ministry of International Cooperation aims to shift mindsets through ‘Economic Diplomacy’ through its three key principles: 1) Multi-Stakeholder Platforms 2) ODA SDG Mapping Framework 3) Global Partnerships Narrative. These principles aim to ensure that development financing is more accountable and effective by enabling stakeholders to have access to comprehensive information on ODA initiatives and opportunities to engage on its programs, playing a key role in mobilising resources to support the SDGs.

Reform as an Imperative

In its continuous efforts to implement reforms, the Ministry of International Cooperation announced the new senior-staff team, initiating a new structure to optimize resources and procedures to enhance efforts under the Ministry's Economic Diplomacy.

Together, in a collective effort, the team brings to the table imagination and innovation, designing a modern modus operandi to further develop and strengthen cooperation between Egypt and its multilateral and bilateral partners. This culture of open governance is based on innovative and sustainable practices inspired by accountability, commitment and transparency that fosters sustainable and inclusive growth.

People at the Core

Transparency in development projects through the “External Debt Management Committee” helps to create an environment in which information on the objectives, frameworks, rationale and accountability is provided to all stakeholders in a comprehensible, accessible and timely manner. The External Debt Management Committee, established by the Prime Minister, manages external borrowing in coordination with the Ministries of International Cooperation, Finance, Planning and Economic Development and the Central Bank of Egypt.

The Mandate of the External Debt Management Committee is the effective and sustainable management of external debt and maintain a competitive credit rating of Egypt through setting an annual ceiling for external borrowing (exceptions possible pending the committee approval), receiving financing needs of ministries and national entities accompanied with feasibility studies on the estimated cost and consistent with the national objectives, identifying the financing gap and sources of finance to be provided externally. The gap is either financed through ODA or Commercial Loans.

The main procedures of ODA Loan Request are as follows

1. Ministries and national entities submit the request of financing to the External Debt Management Committee with preliminary feasibility studies including the estimated cost and the potential impact and consistent with the national objectives

2. Upon the Committee's approval of financing projects through ODA, the Ministry of International Cooperation is approached to secure financing

3. The Ministry of International Cooperation studies the financing requests submitted, determines the appropriate development partner, and negotiates the most suitable financing terms, taking into account the degree of sectoral concentration and diversification of the international cooperation portfolio, technical support and grants required, complementarity with existing projects.

Open Dialogue with Stakeholders

Communicating with openness, accuracy and transparency deepens our understanding of the challenges we face and the solutions that we can offer.

The Ministry of International Cooperation co-hosted the ‘Development Partners Group’ meeting in November 2020 with the United Nations and representatives from development partners. The DPG meeting aims to harness and harmonize the development efforts of all diverse actors involved in development – government, development partners, private sector, and civil society and pave the road to effective and transparent cooperation.

Projects in Action

In 2020, the Ministry secured $68 million in governance from cooperation with USAID, the World Bank, China, and Spain. SDG 16: Peace, Justice, and Strong Institutions includes 32 projects making up for $240 million and 0.9% of total ODA financing.

The Comprehensive Picture

Egypt scored the highest implementation of a national reporting platform for the Sustainable Development Goals (SDGs) by 50% in the region, as reported by the United Nations Economic and Social Commission for Western Asia (ESCWA). To promote engagement and open dialogue on progress, the Ministry of International Cooperation has institutionalized regular monitoring of ODA financed projects at all stages of the project cycle to review projects’ performance and implement corrective actions.

Digital Storytelling

Digital and social media platforms pose an opportunity for effective and purposeful development communication; as they provide the means to document the physical results of development projects across the country.

People connect to the powerful storytelling showcasing the impact of development financing on ground. The Global Partnerships Narrative Strategic Ecosystem; plays an important role in streamlining development cooperation efforts under one umbrella of mindful mobilization; and through the MoIC Narrative Task Force with members of the Development Partners community, create a variety of messaging to engage stakeholders through “pitch, plunge and play” content adopting to a shared vision and language for collaboration.

Purpose as the Driver

Together with all development partners, the Ministry of International Cooperation calls for a "new era" of cooperation championing effective development cooperation, nurturing transparency, open dialogue and governance.

This ‘new era’ is tech-based, harnesses the meteoric rise of digital and social media and is built on powerful storytelling and prefers two-way communication where we collectively inform, and engage the people.

Here are a few of the targets being met:

Goal 16 (Target 16.3)

Promote the rule of law at the national and international levels and ensure equal access to justice for all.

Goal 16 (Target 16.6)

Develop effective, accountable and transparent institutions at all levels.

Goal 16 (Target 16.7)

Ensure responsive, inclusive, participatory and representative decision-making at all levels

Goal 16 (Target 16.A)

Strengthen relevant national institutions, including through international cooperation, for building capacity at all levels, in particular in developing countries, to prevent violence and combat terrorism and crime.

Goal 17 (Target 17.6)

Enhance North-South, South-South and triangular regional and international cooperation on and access to science, technology and innovation and enhance knowledge sharing on mutually agreed terms, including through improved coordination among existing mechanisms, in particular at the United Nations level, and through a global technology facilitation mechanism.

Goal 17 (Target 17.7)

Promote the development, transfer, dissemination and diffusion of environmentally sound technologies to developing countries on favourable terms, including on concessional and preferential terms, as agreed.

Goal 17 (Target 17.8)

Fully operationalize the technology bank and science, technology and innovation capacity-building mechanism for least developed countries by 2017 and enhance the use of enabling technology, in particular information and communications technology.

Goal 17 (Target 17.16)

Enhance the global partnership for sustainable development, complemented by multi- stakeholder partnerships that mobilize and share knowledge, expertise, technology and financial resources, to support the achievement of the sustainable development goals in all countries, in particular developing countries.

FOR MORE INFO, PLEASE DOWNLOAD THE BROCHURE

Stakeholder Engagement through Economic Diplomacy

To document the experience of the Arab Republic of Egypt in launching a framework for international cooperation and development financing, the Ministry of International Cooperation launched the book “Stakeholder Engagement through Economic Diplomacy” from the London School of Economics. The book that was launched is the first of its kind that works to document Egypt’s experience in international cooperation and development finance.

The launch of the book “Stakeholder Engagement through Economic Diplomacy” through the London School of Economics, with high-level participation from distinguished economists around the world, is an unprecedented documentation and international presentation of the Egyptian experience in the field of international cooperation and development financing, and a recognition of Egyptian leadership in the level of consolidation and inauguration of the principles of economic diplomacy. Moreover, this is also  a reference for emerging and developing countries to benefit from the Egyptian experience in the field of international cooperation.

Objectives of launching the book, which is the first of its kind that documents Egypt’s experience in the field of international cooperation and development financing: -

  1. The book documents the pioneering experience of the Arab Republic of Egypt In launching an institutional framework for economic diplomacy based on three pillars aimed at advancing international cooperation mechanisms and development financing to achieve sustainable development goals.
  2. List the efforts undertaken by the Arab Republic of Egypt And the methodologies developed by the Ministry of International Cooperation to align projects funded by multilateral and bilateral development partners with the United Nations goals for sustainable development.
  3. Discussing the practical application of these methodologies through the development financing matching map With the UN goals for sustainable development, available on the website of the Ministry of International Cooperation.
  4. Highlighting the role that the private sector can play to enhance the state’s development plans, How can international partnerships with multilateral and bilateral development partners advance and stimulate this role?
  5. Documenting this experience through the London School of Economics and in cooperation with development partners To become a model available to developing and emerging countries to benefit from the Egyptian experience and to represent a national contribution to international efforts to advance progress towards achieving sustainable development goals.

To view the book

https://www.lse.ac.uk/africa/Assets/Documents/Stakeholder-Engagement-through-Economic-Diplomacy.pdf 

The Automated Information Management System (AIMS)

The international cooperation experience in Egypt is based on the main principles of the Global Partnership for Effective Development Cooperation (GPEDC), which reflect transparency and accountability. The Ministry of International Cooperation launched the  Automated Information Management System (AIMS), an electronic system for managing data and following up on projects funded by development partners, within the framework of the country’s commitment towards a digital transformation and to promote the principles of international cooperation. Transparency and governance of development cooperation efforts with multilateral and bilateral development partners.

The new system is the first of its kind, and is a mechanism for linking and unifying data related to development cooperation agreements, projects and programs with development partners, in order to ensure the availability of relevant information at all levels between the Ministry and all national agencies, in a way that enhances their role in the follow-up and evaluation process and support decision-making. It also enhances the follow-up of the financial and technical performance of projects funded by multilateral and bilateral development partners, extracting periodic reports for decision-makers, and sharing data with project-related entities.

The system comes to complement the governance and transparency system developed by the Ministry of International Cooperation, through the principles of economic diplomacy, to maximize the returns from development cooperation efforts, and achieve comprehensive and sustainable development, through effective communication with various relevant parties, whether development partners or parties and nationals, to ensure that financing development is more effective and measurable by enabling stakeholders to access information about the implemented programs and available opportunities.

Development financing packages for the governance sector during 2020-2023

From 2020 to 2023, the Ministry of International Cooperation concluded non-refundable grant agreements worth $276 million to finance various governance programs implemented by the state in many sectors. The United States of America, the European Union, the World Bank, and Germany contributed to providing these grants, as well as South Korea, and others. These grants contribute to the implementation of many programs, including the Comprehensive Economic Governance Program, supporting e-government and innovation in public administration, the Trade and Investment Stimulation Agreement in Egypt (TIPE), and the Risk Management Mechanisms Program in Egypt.