● Dr. Al-Mashat reviews facilitative financing mechanisms from development partners for the private sector.
● Available financial tools from international institutions have stimulated public-private partnerships and supported structural reforms in Egypt.
H.E. Dr. Rania Al-Mashat, Minister of International Cooperation, highlighted that cooperation between Egypt and development partners is based on a clear national strategy and priorities set by the state, within the framework of the concept of "country ownership". H.E. Dr. Al-Mashat emphasized that when considering projects and moving forward, alignment with executable projects is essential. Egypt has already worked towards this and strengthened its partnerships with various multilateral and bilateral development partners and international institutions.
This came during her participation in a high-level panel discussion titled " "Financing the Future: Financial Vehicles to Support Investments in Egypt", as part of the Egypt-European Investment Conference. The session was attended by Mr. Jürgen Rigterink, EBRD First Vice President; Mr. Gert Jan Koopman, Director-General for Neighbourhood and Enlargement Negotiations at the European Commission; Gelsomina Vigliotti, EIB Vice President ; Engineer Khaled Abu Bakr, Chairman of TAQA Arabia; and Mr.Amir Mishricky, Managing Director, Ezdehar PE fund.
The Minister of International Cooperation highlighted the importance of concessional financing as one of the tools available to reduce investment risks, encourage foreign investments, and enhance partnership between the public and private sectors in Egypt. This is achieved through international partnerships that reinforce the concept of partnering with the private sector and implementing strategic projects in the country in collaboration with relevant stakeholders.
H.E Dr. Al-Mashat pointed out the strategic partnership between the Arab Republic of Egypt and the European Union, underscored by the political declaration signed last March, which enhances future prospects for this partnership. H.E. explained that there are several strategic sectors of mutual interest, including green hydrogen, renewable energy, food security, water security, and digital transformation. The European Union and European financial institutions are key partners in implementing the National Platform for Green Projects under the "NWFE" program.
H.E. Dr. Al-Mashat emphasized the role of these partnerships in providing concessional financing to the private sector in Egypt to achieve development goals and enhance climate action within the framework of the National Climate Action Strategy 2050. The government has ensured the creation of a common approach that ensures collaboration among all relevant entities in funding and implementing development projects in Egypt.
The Minister of International Cooperation stressed the importance of structural reforms in creating and encouraging an investment-friendly climate. In this context, our relationship with the European Union through mechanisms such as Macro-Financial Assistance (MFA) to support the overall economy and budget deficit, Development Policy Financing (DPF) from the World Bank, and budget deficit financing from the African Development Bank, is based on clear structural reforms to promote private sector involvement in development and implement structural reforms. These programs focus on three important pillars: enhancing economic stability, supporting and improving competitiveness and the business environment, and promoting the green transition.
H.E Dr. Rania also discussed the strong partnership with development partners, which has unified efforts to support Egypt's developmental challenges, find innovative solutions to drive development efforts, and stimulate private sector investments, and whether through financing, technical support, or supporting structural reforms undertaken by the Government of Egypt.
Dr. Al-Mashat noted that the structural reforms implemented by the state since 2014, including the issuance of the electricity feed-in tariff, have attracted significant financial and investment flows to the renewable energy sector. These efforts continue to create an environment conducive to expanding green hydrogen production, especially following the issuance of the National Green Hydrogen Strategy with support from the European Union and the European Bank for Reconstruction and Development, contributing to attracting substantial investments in this sector.
The Minister of International Cooperation mentioned that there are numerous concessional financing mechanisms offered by development partners, including credit lines for banks that enhance financing for small, medium, and micro enterprises, as well as funding for startups, concessional financing, investment contributions, technical support, and investment guarantees available from development partners such as the European Union and others.