● Budget support funds enhance efforts made in the health sector to implement the comprehensive health insurance project, support green growth programs in the electricity sector, and respond to food security challenges.
● Providing two guarantees from the AfDB and the AIIB for the offering of panda bonds to enhance access to international markets and stimulate the transition to a green economy.
The annual report of the Ministry of International Cooperation for 2023, under the title The annual report of the Ministry of International Cooperation for 2023, entitled “International Partnerships for Sustainable Development: Platforms for Policy and Practice,” revealed that the total development financing for the various sectors of the country amounted to $28.5 billion from multilateral and bilateral development partners, including $3.9 billion in Budget support sector during the years 2020, 2021, 2022 and 2023.
These financings were distributed at $1.06 billion during the year 2020, including development financing worth $638 million from the Arab Monetary Fund for the project to facilitate the structural adjustment of the government finance sector. The French Development Agency (AFS) also provided financing worth $171 million for the energy sector budget support program, and another agreement worth $254 million from the African Development Bank (AfDB) for the Electricity and Green Growth Support Programme. The two programs aim to enhance sustainability and competitiveness in the electricity sector, ensure energy supplies, enhance mitigation of the effects of climate change, and stimulate green growth.
In 2021, the Ministry of International Cooperation concluded a development financing agreement worth $400 million from your international group, and another agreement worth $182 million from the AFD to support the health sector budget to implement the comprehensive health insurance program, thus enhancing the implementation of the comprehensive health insurance project, which it adopts. The government develops health care services and provides comprehensive insurance coverage for all Egyptians. Egypt is working to implement a comprehensive health insurance project, which aims to include all Egyptians with an insurance coverage system by 2032.
In addition, Japan has provided development financing worth $238 million for the energy sector development policy financing project, supporting the electricity sector budget and stimulating green growth.
In 2022, development funds to support the budget amounted to about $1.58 billion, including the Development Policy Framework financing program financed by the World Bank and the Asian Infrastructure Investment Bank (AIIB) at a value of $720 million, at $360 million for each, which aims to support the government’s recovery efforts in the wake of the pandemic while addressing some of the long-term structural challenges that have affected the growth model that Egypt offers. The objectives of development policy financing are to: (a) enhance overall financial sustainability, (b) create a supportive environment for private sector development, and (c) enhance women's economic inclusion.
In addition, a development financing agreement was signed with the AfDB worth $90 million to support the green growth program in the electricity sector, in addition to two development financing from the World Bank and the AfDB worth $500 million and $271 million, respectively, for the emergency response project to foods security challenges to confront the effects of the pandemic and enhance food security in Egypt.
In 2023, the total funding to support the budget amounted to about $458 million, including $327 million for the comprehensive health insurance project from Japan, and $131 million to support the budget from the AfDB.
In addition, the annual report revealed the guarantees provided by development partners during the current year to enhance the country’s ability to access international markets and issue panda bonds, as the AfDB provided a guarantee worth $345 million, and the AIIB provided a guarantee worth ¥3.6 billion Chinese, which contributed to supporting the state’s ability to offer Panda bonds in the Chinese market worth $500 million, to finance green projects in many sectors.
For more details about the annual report of the Ministry of International Cooperation