In conjunction with its official launch at a high-level event under the patronage and attendance of H.E. Dr. Mostafa Madbouly, Prime Minister of Egypt, the Ministry of Planning, Economic Development, and International Cooperation presents the objectives, approach, and components of Egypt’s Integrated National Financing Strategy (E-INFS), which was launched as part of the "Financing the Sustainable Development Goals (SDGs) in Egypt" framework.
The Egyptian government, represented by the Ministry of Planning, Economic Development, and International Cooperation, signed the "Sustainable Development Goals Financing Strategy for Egypt" framework in partnership with the United Nations Resident Coordinator’s Office in Cairo in March 2021, with support from the United Nations Joint SDG Fund.
The strategy aims to answer three key questions: What is the financial funding required to achieve the main SDGs? What are the current financial flow sources and how are they allocated? What are the available opportunities to increase financing and improve its allocation effectiveness?
In the following report, the Ministry presents all relevant details about Egypt’s Integrated National Financing Strategy (E-INFS):
What is Egypt's Integrated National Financing Strategy?
Egypt’s Integrated National Financing Strategy (E-INFS) is a key document that highlights Egypt’s approach to financing the SDGs. It proposes a comprehensive national financing framework that includes various financing initiatives aimed at accelerating the achievement of the SDGs. The strategy, through efforts between different national entities and development partners, provides a clear, context-specific roadmap along with a framework for monitoring and evaluation.
It also highlights measures to bridge the financing gap, increase financial flows to key sectors, enhance innovative financing mechanisms, and encourage private sector involvement in sustainable development efforts.
Why was Egypt’s Integrated National Financing Strategy Launched?
This strategy represents Egypt’s first national financing strategy for the SDGs, following the global approach of the Integrated National Financing Framework (INFF). It provides a comprehensive national financing and resource mobilization framework aligned with the SDGs, Egypt’s Vision 2030, and the Addis Ababa Action Agenda.
The strategy aims to identify financing gaps and improve resource allocation to priority sectors. Egypt is one of 36 African countries that have begun developing and implementing the INFF, and the strategy was globally launched by H.E. Dr. Rania A. Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, during the “Summit of the Future” in New York.
Who Developed Egypt’s Integrated National Financing Strategy (E-INFS)?
The strategy was developed under the leadership of the Ministry of Planning, Economic Development, and International Cooperation, in collaboration with key entities, including the Ministry of Finance, the Ministry of Social Solidarity, the Central Bank, and with technical support from the United Nations Development Programme (UNDP). Other UN agencies, including UNICEF, UNCTAD, UN Women, and the International Labour Organization (ILO), also participated.
The strategy is aligned with Egypt’s key national strategies, including Vision 2030, the national economic and structural reforms program, the country ownership policy document, the sustainable sovereign financing framework, and the economic reform program with the International Monetary Fund (IMF).
What are the Pillars and Objectives of Egypt’s Integrated National Financing Strategy (E-INFS)?
The strategy focuses on mobilizing sustainable financing to bridge the financing gap and reduce future financial risks and debt. It promotes the shift from traditional financing mechanisms to inclusive financing strategies for sustainable development. The goals include addressing financing gaps to achieve SDGs in priority sectors, improving the alignment of public and private financing with Egypt’s strategic priorities and the SDGs, encouraging private sector investments, improving public expenditure efficiency, and creating a practical roadmap for sustainable and innovative financing to mobilize financial resources on both the local and international levels.
What are the Key Components of Egypt’s Integrated National Financing Strategy?
The components of the strategy include identifying financing gaps in priority sectors by assessing the financing needs of seven priority sectors as a percentage of GDP from 2021 to 2030. It also involves analyzing various financing sources, including current public and private financial flows, local and international sources, and innovative financial resources that can be utilized.
The strategy also sets a framework for investment policies to direct investments toward essential sectors directly contributing to the SDGs and enhancing the investment environment through regulatory simplification, improved governance, and public-private partnerships.
Additionally, the strategy includes a comprehensive roadmap for sustainable and innovative financing through plans to improve public and private resource flows, enhance revenue collection efficiency, increase budget transparency, and stimulate private financing through innovative mechanisms like Islamic sukuk and carbon markets. The governance and coordination mechanisms include a comprehensive government approach to ensure effective coordination between concerned entities through a high-level supervisory committee, technical working groups like the Finance for Development Working Group (FDWG) and the Sustainable Finance Working Group (SFWG), and engaging non-governmental stakeholders in the implementation processes. The strategy also includes monitoring and evaluation mechanisms to track progress towards financing the SDGs in priority sectors and ensure transparency by involving civil society, private sector institutions, and relevant government bodies in the monitoring processes.
How Were the Priority Sectors Determined for the Project?
The targeted sectors were selected based on those identified by Egypt’s “Mainstreaming, Accelerating, and Policy Support (MAPS)” program, implemented in collaboration with the UN. This program aimed to support countries in achieving the SDGs, focusing on social protection, education, health, water and sanitation, transport, and women’s empowerment, as these sectors have significant impacts on other SDGs. Climate change was also added as a key sector during the project’s first steering committee meeting in October 2021 due to its importance.
What Are the Key Takeaways from the Preparation Process of Egypt’s Integrated National Financing Strategy?
Aligning development planning with financial planning.
Continuing dialogue with all partners to enhance local and international resource mobilization.
A bottom-up approach: starting with cost and flow determination, measuring financing gaps, and then establishing appropriate resource mobilization mechanisms.
Paying attention to the national context when determining methodologies and approaches.
Enhancing evidence-based financing.
Are There Mechanisms to Achieve Institutional Integration within the Ministry of Planning, Economic Development, and International Cooperation to Support Financing for Development Efforts?
Yes, there are several mechanisms to achieve institutional integration within the Ministry of Planning, Economic Development, and International Cooperation to support financing for development. The ministry contributes to development financing efforts through the "Framework for Sustainability and Financing for Economic Development", which operates on national coordination and international cooperation. This framework aims for quality, sustainable economic growth through three main pillars, along with the "National Narrative for Economic Development," which was developed to support this framework with tangible, actionable steps, specific time-bound reforms, and policies aimed at achieving sustainable growth and enhancing Egypt’s economic competitiveness.
To download Egypt's Integrated National Financing Strategy (E-INFS), click here.