● Al-Mashat: Expanding investment guarantees from the World Bank to increase private sector participation

● The Unified Guarantees Platform provides innovative financing tools and guarantees for the public and private sectors

● The diversity of financing tools stimulates private capital flows in development sectors, and we continue our efforts to improve the business environment

H.E. Dr. Rania A. Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, inaugurated the workshop "Enhancing Foreign Direct Investment in Egypt through World Bank Group Guarantees," organized by the Multilateral Investment Guarantee Agency (MIGA). The event was attended by Stefan Gimbert, Regional Director for Egypt and Yemen at the World Bank, and representatives from various ministries, including Electricity and Renewable Energy, Industry, Finance, Housing, Utilities and Urban Communities, Investment and Foreign Trade, Health and Population, Supply and Internal Trade, the Suez Canal Economic Zone, and the Small and Medium Enterprises Agency. The workshop also welcomed representatives from the private sector, including El Sewedy Electric, Actis, Hassan Allam, Infinity Power, Arab Energy, and Egyptian banks.

In her speech, H.E. Dr. Rania A. Al-Mashat emphasized the significant importance of the World Bank Group's Unified Guarantee Platform, which was launched earlier this year to encourage private capital flows and promote development. By pooling the guarantees provided by the Multilateral Investment Guarantee Agency, the International Finance Corporation, and the World Bank, the platform makes these guarantees available through a single channel to offer the best innovative solutions for both the public and private sectors.

Al-Mashat highlighted that this platform comes at a crucial time, as the government is mobilizing efforts to involve the private sector in driving economic growth. In this context, the Ministry of Planning, Economic Development, and International Cooperation is working to enhance the efficiency of investment spending and aims to increase the private sector's contribution to the state’s investment plan projects. The ministry is also expanding cooperation with development partners to provide more mechanisms, both direct and indirect, for the private sector in Egypt, noting that the private sector has received approximately $12 billion in financing since 2020.

H.E. Dr. Rania Al-Mashat further pointed out the ongoing cooperation with the World Bank to stimulate growth and employment, with a focus on the driving sectors of the Egyptian economy. She explained that the World Bank's Unified Guarantee Platform would open up prospects for more varied financing tools from the bank's affiliated institutions to meet the financing needs of both the public and private sectors.

H.E. added that the World Bank Group, which includes the International Bank for Reconstruction and Development, the International Finance Corporation, and the Multilateral Investment Guarantee Agency, has always been a long-term partner of the Egyptian government in various fields, including implementing development projects, providing technical assistance, and conducting research and technical analysis. Over the decades, the World Bank Group has contributed to many sectors such as education, health, transportation, social protection, housing, and strengthening the private sector.

Al-Mashat also mentioned that, based on previous experiences, the Egyptian government can benefit from the expertise of the Multilateral Investment Guarantee Agency in utilizing the guarantee tool in other countries, which can be applied to Egypt in sectors such as expanding renewable energy generation, infrastructure and public transportation projects, and increasing investor confidence in state-owned companies, thus reducing costs.

H.E. noted that two strategies are being developed in cooperation with the World Bank: the Foreign Direct Investment Strategy and the Industry Development and Trade Promotion Strategy in Egypt. Both strategies focus deeply on improving the business environment and implementing the necessary policy measures for state-owned companies to enhance private sector investment.

Furthermore, the Minister stated that the International Finance Corporation collaborates closely with the Egyptian government to increase private sector participation in the economy, which helps boost competitiveness and create job opportunities. She added that the Corporation has been appointed as a strategic advisor for the Government Assets Monetization Program, which will focus on leveraging private capital and expertise to manage state-owned assets.

Regarding innovative financing mechanisms, H.E. Dr. Rania Al-Mashat emphasized the need to explore new financial tools to bridge development gaps, eradicate extreme poverty, and enhance shared prosperity. She highlighted that, in line with the global need for cooperative financial governance frameworks, Egypt launched an international framework for innovative financing at COP27, entitled "Sharm El-Sheikh Guidebook for Just Financing." This initiative is aimed at translating commitments into implementable projects and mobilizing financing to support the climate agenda.

H.E. continued by explaining that the World Bank Group Guarantee Platform is an example of a tool designed to stimulate financing for development, especially in light of current development gaps. This platform is a new tool being expanded as part of the World Bank Group's evolution roadmap. Although it has not yet been utilized in Egypt, it aims to ensure that development financing is well-directed and effective in addressing the most pressing development issues, in line with national priorities and strategies.

H.E. also elaborated that the World Bank Group Guarantee Platform aims to encourage the flow of private capital for development by increasing the World Bank Group’s annual guarantee issuance to reach $20 billion by 2030.

Al-Mashat concluded by stating that, in the face of global challenges, the platform offers the best guarantee solutions for countries and their entities, streamlining procedures for greater simplicity. It provides speed and efficiency in execution, ensuring that the World Bank Group can help meet countries’ project needs and development priorities.