• Implementing 14 public and private sectors operations worth $1.46 billion in the water, renewable energy, private sector development and food security sectors 2022-2024
•H.E. Dr. Rania A. Al-Mashat: Strengthening the future partnership with the bank to expand financing mechanisms for development
• Our partnership with the African Development Bank (AfDB) is consistent with national strategies aimed at achieving national development
• Mobilizing technical support and investments to implement water desalination projects within the country platform: NWFE
• AfDB Vice President: We are committed to continuing joint work to enhance economic resilience and improve the business environment in Egypt
H.E. Dr. Rania A. Al-Mashat, Minister of Planning, Economic Development and International Cooperation, launched the workshop on the mid-term evaluation of the joint country strategy for development cooperation between Egypt and the African Development Bank Group (AfDB) 2022-2026, as part of the Ministry’s role in strengthening economic relations with development partners, following up on the implementation of joint strategies, and mobilizing domestic and foreign financing to achieve sustainable development, through an integrated national financing framework that enhances the allocation of resources to priority sectors, stimulates private sector investments, and accelerates the progress towards achieving development goals.
The workshop was attended by Prof. Kevin Urama, Chief Economist and Vice President for Economic Governance and Knowledge Management of the African Development Bank; Mr. Abdourahmane Diaw, Country Manager of the Bank in Egypt, and representatives of the Ministries of Housing, Utilities and Urban Communities, Water Resources and Irrigation, Agriculture and Land Reclamation, Electricity and Renewable Energy, Industry and Transport, Investment and Foreign Trade, the General Authority for Investment and Free Zones, Finance, and the Small and Medium Enterprise SME Development Authority.
During the workshop, the Minister of Planning, Economic Development and International Cooperation reviewed the results of the partnership with the African Development Bank over the past two years, since the country strategy with the bank was announced at the second edition of the Egypt-International Cooperation Forum. The country partnership is focused on two main pillars: Strengthening the country’s competitiveness to support robust private sector led growth and job creation, and Building resilience to achieve food and water security and energy efficiency. This is consistent with the national visions represented in Egypt's Vision 2030, the National Climate Change Strategy 2050, the Government's Work Program, the National Strategy for Sustainable and Integrated Energy, and presidential initiatives, most notably "Decent Life".
The number of operations that the bank contributed to financing during the period from 2022 to 2024 amounted to approximately 14 operations for the government and private sectors, with a value of $1.46 billion, including 6 private sector operations. The partnership with the bank strengthened development efforts in the areas of food security, private sector development, water desalination, water treatment, and expansion of renewable energy projects.
H.E. Dr. Rania A. Al-Mashat emphasized the long-term partnership with the bank, as Egypt is one of the founding members and contributed about 12.5% of the bank’s capital upon its establishment, noting that the bank began its operations in Egypt in 1974 and played an important role in financing various development projects across all sectors through concessional funding, grants, and technical assistance. Today, Egypt ranks second after Nigeria in terms of capital share among regional countries in the African Development Bank.
H.E. Dr. Rania A. Al-Mashat also pointed out the Ministry’s framework after merging the Planning, Economic Development and International Cooperation portfolios, which aims to achieve sustainable economic growth through the design of a comprehensive economic development strategy, based on: Formulating Data-Driven & Evidence-Based Economic Development Policy informs educated discussions about the needs and opportunities in areas such as human Capital, industrial development, SMEs, technology, entrepreneurship, sustainable infrastructure, green investments, among others, while ensuring robust monitoring and evaluation mechanisms to track progress and optimize outcomes; Building a Future-Resilient Economy advances macroeconomic stability through the implementation of structural reforms to foster economic competitiveness, macro-fiscal resilience and the green transition; and Optimizing Resource Allocation by adopting an integrated national financing framework that mobilizes domestic and international financing, thus allocating resources to priority sectors and supporting SDG acceleration.
Furthermore, The Minister highlighted the Ministry's progress in aligning concessional development funding with the Sustainable Development Goals (SDGs), in addition to enhancing follow-up efforts through the AIMS electronic project monitoring system, and following up on concessional funding projects. This comes in line with Egypt’s commitment to digital transformation and enhancing governance, confirming that the system aims to enhance transparency and accountability in development projects across all national entities by simplifying data management and enhancing portfolio follow-up with each development partner, ensuring transparent data availability and addressing challenges.
H.E. also referred to the "Hub for Advisory, Finance & Investment for Enterprises" platform and the launch of the Sharm El-Sheikh Guidebook for Just Financing Financing which was prepared with over 100 relevant entities
Moreover, the Minister reviewed the government's new program for the period 2024-2027, which includes 4 major objectives, including investing in human capital, building a competitive economy that attracts investments, industrial development, and entrepreneurship.
Al-Mashat further commended the collaboration with the bank within the framework of the country platform for the “NWFE” program, as the AfDB is the main development partner in the water sector, which includes the establishment of 5 stations to desalinate water using solar energy in 4 different governorates, with a total capacity of up to 525,000 cubic meters per day. H.E. noted that the bank has mobilized grants worth $843,000, within the framework of the technical preparation of the projects, in terms of preparing the necessary environmental and social studies that contribute to increase the availability of desalinated water using renewable energy within the framework of the public-private sector partnership, in addition to cooperation with the bank in the field of energy.
For his part, Prof. Kevin Urama, Vice President of the African Development Bank applauded the ongoing reforms in the country to implement transformational economic programs aimed at addressing the economic and social challenges facing the country, noting that Egypt's economic outlook remains positive, and that there are expectations of increased growth based on a set of important economic reforms that have been implemented in the country, which include improving the business environment, enhancing transparency and competitiveness, which contributes to supporting the private sector and attracting more domestic and foreign investments.
The AfDB Vice President noted that Egypt continues to be a major destination for investment, given the available economic opportunities, ambitious development plans, and ongoing reforms that position Egypt as an attractive environment for investors, stressing the bank's commitment to continue working with Egypt to build economic resilience and enhance the business environment to attract the private sector, noting that Egypt has been and still is a role model on the continent to achieve sustainable development and enhance investment in key areas.
It is worth noting that the partnership between the Arab Republic of Egypt and the AfDB resulted in financing more than 128 operations for the public and private sectors, worth $7.79 billion, in various sectors including agriculture, industry, energy, transportation, water, developing the financial system, increasing access to financing for small, medium and micro enterprises, and the water and sanitation sector.