● Al-Mashat reviews with the President of the WBG the priorities for future cooperation and the Bank’s role in supporting structural reforms to enhance the private sector’s participation in development.
● Al-Mashat meets with the President of the IFC and the Vice-President of MIGA to discuss the expansion of financial and technical support mechanisms and guarantees for the private sector in Egypt.
During her visit to the United States of America, the Minister of International Cooperation and Governor of Egypt at the World Bank Group H.E. Dr. Rania A. Al-Mashat held a bilateral meeting with the President of the World Bank Group, Ajay Banga and the Managing Director and World Bank Group Chief Financial Officer, Anshula Kant, within the framework of bilateral relations and the continuous development of joint work between Egypt and the World Bank.
H.E. also met with the Managing Director of the International Finance Corporation (IFC) Makhtar Diop and held a discussion session with the Executive Vice President of the Multilateral Investment Guarantee Agency (MIGA), Hiroshi Matano.
President of the World Bank Group
During the meeting with the President of the World Bank, the two sides discussed enhancing joint cooperation and priorities for the next stage with regard to partnerships between Egypt and the bank, in light of the 2023-2027 Country Partnership Framework, which was launched last year, and priorities in accordance with the various national and sectoral strategies, the role of the bank in enhancing private sector participation in development and enhancing the implemented structural reforms.
Al-Mashat added that, through the new framework, Egypt, in cooperation with the World Bank, is working to enhance its national priorities and mobilize resources, technical expertise, and knowledge to implement targeted initiatives that will enhance infrastructure, education, health care, and job opportunities, based on the multilateral approach in promoting comprehensive and equitable development, leading to achieving social and economic development in Egypt and improving the quality of life for citizens.
Al-Mashat stressed the depth of the relations between the government and the World Bank and their diversity in various areas of development that serve the government’s priorities, and Egypt’s appreciation for this partnership, at the level of development financing and technical support, and its importance in implementing many projects that directly benefit citizens of the world. Among these is the expansion of social protection programs “Takaful and Karama,” the Universal Health Insurance project, the Upper Egypt development project, and other basic sectors.
It is worth noting that the World Bank cooperates with the government in many fields, in addition to development financing and technical support. The Bank implements many diagnostic reports and studies, and a study is currently being prepared on foreign direct investment in Egypt, as well as the national strategy for industrial development and trade promotion, in particular in light of the importance of the two studies for the state to attract more foreign direct investments and localize industry in various sectors, and their importance in strengthening the steps taken with all partners to achieve the goals and priorities of the Egyptian state.
Al-Mashat also met with the Managing Director and World Bank Group Chief Financial, Anshula Kant, where they discussed strengthening cooperation efforts with the World Bank, and ongoing efforts to develop the role of the World Bank to provide more effective solutions to support development and reduce poverty and inequality.
The International Finance Corporation
In the same context, Al-Mashat met with the Managing Director of the IFC, Makhtar Diop, where the meeting witnessed a discussion of enhancing cooperation with the IFC, the arm of the WBG to finance the private sector, in light of the close and extended relationship with Egypt, and the role of IFC, as the largest global development institution whose work focuses on the private sector in developing countries, discussed the ongoing cooperation developments with the institution, most notably its work as a as strategic advisor to the government’s Asset Monetization Program to the government in implementing the government proposals program in accordance with the agreement signed last June, in light of the government’s endeavor to provide the opportunity for more partnerships with the private sector.
Al-Mashat stressed the government’s appreciation for the joint work with the IFC, and the importance of partnerships and efforts made that are consistent with the government’s vision and priorities to increase the private sector’s participation in development in various fields, through investments and technical consultations that the institution provides to private sector companies in various sectors, which stimulates investments and encourages partnership between the government and private sectors.
H.E. pointed out that through the partnership between the Arab Republic of Egypt and the IFC, financial and technical support is provided with the aim of enhancing the private sector’s participation in economic development. The IFC’s investments play a role in strengthening key sectors such as energy, infrastructure, manufacturing industries, and financial services, in addition to benefiting from the IFC’s vast global network and its financial and advisory resources, which leads to increasing private sector investments, enhancing the competitiveness of Egyptian companies, and aligning them with international standards.
The close partnership with the Corporation is reflected in the volume of IFC investments exceeding $7 billion in total. Also, over the past four years, the IFC’s investment portfolio has reached about $2.46 billion, including an already ongoing portfolio of $1.7 billion for several companies, and a technical cooperation portfolio worth $34 million, in high-priority areas such as the financial sector, fintech, climate finance, manufacturing, infrastructure and renewable energy, healthcare, and gender equality.
Multilateral Investment Guarantee Agency
Al-Mashat held a meeting with the Executive Vice President of the MIGA, Hiroshi Matano, where the meeting witnessed a discussion of efforts to develop cooperation with MIGA to empower the private sector and increase its participation in achieving development, in light of the government’s development vision aimed at increasing the percentage of private sector participation in various sectors.
Al-Mashat and officials from MIGA discussed ways of enhancing joint cooperation during the coming period in light of the government’s keenness to activate its role and support it through international partnerships to increase its participation in various development efforts, stressing the role of MIGA as one of the entities affiliated with the World Bank, in promoting private sector investments in developing countries and emerging economies through guarantees, risk management services, and providing financing to companies.
MIGA is a key partner in the ongoing efforts to enhance the private sector’s participation in development in a way that stimulates comprehensive and sustainable growth, noting that since 2012 the agency has covered investments worth approximately $500 million in the local market.
It also announced its commitment to supporting vital development sectors in Egypt, most notably renewable energy and sustainable transportation, and building on successful partnerships with the private sector, especially in the Benban Solar Energy Park.
Global Concessional Financing Facility Programme
Al-Mashat met with the work team of the Global Concessional Financing Facility (GCFF), established under the World Bank, where ways to advance joint cooperation were explored in light of the role that the program plays in reducing financing costs for development projects that support host communities and refugees.
In the same context, Al-Mashat discussed, with World Bank officials, mechanisms to enhance benefits from the International Bank for Reconstruction and Development Bank for Reconstruction and Development’s (IBRD) guarantee to finance projects and reduce financing costs, which is one of the mechanisms provided by the Bank to reduce investment risks and attract more private sector investments for development projects. different.
During the meeting, Al-Mashat discussed the results of the workshop held last November in cooperation with the World Bank and in the presence of concerned national authorities on the mechanism of the World Bank guarantee, to present cases of use of the guarantee, mechanisms for its implementation, and explore the different types of guarantees provided by the bank. H.E. also touched on future steps to benefit from these mechanisms, to meet the country’s development needs and support the economy to achieve sustainable development.
The Ministry of International Cooperation launched the annual report for 2023 under the title “Platforms for Policy and Practice,” which highlighted that the private sector has received development funding from multilateral and bilateral development partners from 2020 until now, which amounted to about $9.7 billion, in addition to technical support. And other consulting services.
Recently, the Ministry of International Cooperation launched the Private Sector Portal: Hub for Advisory, Finance and Investment for Enterprises, which is considered an integrated platform that connects development partners, agencies, the government, and the local business community, with the aim of enhancing communication and linkage between various private sector companies, whether large companies, or small, medium, and micro companies, emerging companies, investment funds, or local financial institutions, in order to benefit from development financing, technical support, and consultations.
For more information:
The 2023 Annual Report: https://moic.gov.eg/page/annual-report-2023
The Hafiz platform: https://privatesector.moic.gov.eg/?lang=en