• Egypt has presented a model of resilience in dealing with crises through fundamental reforms since March 2024.

• We have benefited from long-term and innovative capital available from international institutions.

• Investments by international institutions do not only enhance growth, but also pave the way for industrialization and stronger economic competitiveness.

• Ongoing global transformations raise concerns about the technological and digital gap between developed and developing countries.

H.E. Dr. Rania Al-Mashat, Minister of Planning, Economic Development and International Cooperation, participated in a panel discussion entitled “The Future of Emerging Markets” during the World Economic Forum in Davos, alongside Mr. Makhtar Diop, Managing Director of the International Finance Corporation (IFC), and Mr. Bob Sternfels, Global Managing Partner of McKinsey & Company.

During her participation, H.E. Dr. Al-Mashat emphasized that building resilience in emerging economies is not achieved merely by relying on growth indicators or foreign direct investment figures, but rather through the continuous and uninterrupted implementation of reforms.

H.E. Dr. Al-Mashat pointed out that Egypt’s experience represents a clear model in this regard, as March 2024 witnessed the implementation of a package of fundamental reforms encompassing monetary and fiscal policies, in addition to ongoing structural reforms. Despite regional geopolitical challenges and the impact on Suez Canal revenues, the Egyptian economy achieved a growth rate of 4.4% in the previous fiscal year, driven by real productive sectors, most notably manufacturing, information and communications technology, and tourism.

H.E. Dr. Al-Mashat reaffirmed that the current positive returns are a direct result of structural reforms that have opened up the economy and unleashed its latent potential, stressing that reform is a continuous process with no ceiling. It is essential for reforms to continue in a rapidly changing world, while ensuring that they encompass various economic and social dimensions, as well as reforms related to the private sector.

The Minister also mentioned the issue of external capital flows, noting the necessary distinction between short-term, volatile capital and long-term capital that supports real development. She reiterated that managing these flows requires a clear vision and strong institutional readiness, praising the role played by the International Finance Corporation (IFC) in supporting emerging economies.

H.E. Dr. Al-Mashat underscored that Egypt benefits significantly from innovative financing instruments in infrastructure and energy, where renewable energy plans are based on partnerships with the private sector, supported by concessional financing, guarantees from the Multilateral Investment Guarantee Agency (MIGA), and blended finance mechanisms that include grants from development partners. She noted that this financing model has contributed to the implementation of major projects in renewable energy, wind power, and green hydrogen, in addition to climate adaptation projects in the water and waste management sectors.

H.E. Dr. Al-Mashat pointed out that this type of “patient capital” directed toward the private sector not only supports growth, but also creates jobs and paves the way for strengthening industrialization and increasing export-oriented activities. She stressed that Egypt’s investments in ports and logistics infrastructure, within the framework of the African Continental Free Trade Agreement, lie at the heart of supporting emerging economies and connecting them to regional markets.

The Minister further discussed the future challenges related to the technological revolution and artificial intelligence, expressing concern about the risk of widening gaps between countries amid ongoing transformations.

H.E. Dr. Al-Mashat explained that the world is no longer divided into countries that merely use technology and those that produce it; rather, disparities are now linked to the ability to play an effective role within the artificial intelligence ecosystem itself. She referred to a clear lack of international discussions on how to achieve convergence among countries in this field, stressing the need to integrate the AI dimension into the programs of international financial institutions, including economic analysis and diagnostic tools.

H.E. Dr. Al-Mashat considered that classifying economies based on their possession of artificial intelligence capabilities will be a decisive factor in attracting investments, which poses a major challenge for developing countries, despite Africa’s wealth of strategic resources and rare minerals.

In concluding her remarks, H.E. Dr. Al-Mashat addressed transformations in the global economic system, affirming that despite the rise of protectionist tendencies in recent years, there remains an effort to establish common rules governing the global economy, with the private sector playing a pivotal role in this process. She explained that technology has played a fundamental role in sustaining strong global growth and reducing inflation rates, considering it one of the most important tools for confronting external shocks that affect livelihoods.

H.E. Dr. Al-Mashat also spoke about the concept of “global public goods,” noting that the term is frequently used in international statements without a precise definition or clear criteria. This calls for a deeper discussion on how these goods are defined and the role of states and emerging companies in providing them, particularly in a world characterized by intertwined challenges and overlapping crises.