Al-Mashat:

• Innovation and entrepreneurship are two main pillars for overcoming the "middle-income trap”.

• Egypt launched the Ministerial Group for Entrepreneurship to enhance the growth capacity of startups.

• Possessing a national vision, policy consistency, and identifying priority projects stimulate partnerships with the private sector.

H.E. Dr. Rania A. Al-Mashat, Minister of Planning, Economic Development and International Cooperation, and Egypt's Governor to the Islamic Development Bank (IsDB) Group, participated in a discussion session titled "Avoiding the Middle-Income Trap: Accelerating the SDGs Achievement in IsDB Middle-Income Countries."  

This session was part of the IsDB Group's 2025 Annual Meetings, held from May 19 to 22, 2025, in Algiers, Algeria, under the theme "Diversifying Economies, Enriching Lives." 

The meetings saw broad participation from finance, economy, planning, and international development ministers from the 57 member countries, alongside leaders of global financial institutions, development partners, policymakers, and private sector representatives.

The session was attended by Ms. Amina Mohammed, UN Deputy Secretary-General; Dr. Muhammad Al-Jasser, Chairman of the Islamic Development Bank (IsDB); Dr. Alvaro Lario, President of the International Fund for Agricultural Development (IFAD); Mr. Ismael Nabé, Minister of Planning and International Cooperation of Guinea; Zeina Toukan, Minister of Planning and International Cooperation of Jordan; and Cheick Oumar Sylla, Regional Director for North Africa, International Finance Corporation (IFC).

Innovation and Entrepreneurship

During her speech, H.E. Dr. Rania Al-Mashat emphasized that innovation and entrepreneurship are essential factors for overcoming the middle-income trap. She noted the necessity for countries to have a clear national vision and defined development priorities to attract private investments and strengthen partnerships.

H.E. Dr. Rania Al-Mashat highlighted that the government established the Ministerial Group for Entrepreneurship to enhance the capacity of startups and the entrepreneurship ecosystem. This aims to achieve sustainable and accelerated economic growth based on competitiveness and knowledge, contributing to the creation of decent job opportunities, reflecting Egypt's broader focus on innovation and private sector growth.

Addressing Climate Challenges

H.E. Dr. Al-Mashat pointed out that addressing climate challenges can simultaneously be an opportunity for development. Egypt has adopted this approach in developing its country "NWFE" program platform, which connects climate finance with priority development projects in the energy, food, and water sectors. 

This initiative has attracted approximately $4 billion in international private sector investments within two years, leading to the generation of 4 gigawatts of renewable energy.

H.E. Minister Al-Mashat affirmed that the success of countries in stimulating private sector participation requires several factors, including possessing a clear national vision, coordinating policies among government entities, identifying priority projects capable of attracting investors, and leveraging international relations to mobilize concessional financial resources.

H.E. Dr. Al-Mashat stressed the importance of credibility in policy implementation to ensure continuous support from international financial institutions. She also mentioned that multilateral financial institutions, including the IsDB, have shown increasing readiness to support development partnerships, but the role of countries remains crucial in identifying projects and providing an attractive environment for investors.

Stimulating Investment and Innovation to Address Climate Challenges

The Minister of Planning, Economic Development and International Cooperation also addressed the challenges related to water scarcity, reaffirming that Egypt has been working for over a decade to implement major investments to maximize the efficiency of water resource utilization and expand water treatment and desalination projects.

She indicated that national efforts to combat climate change serve global goals, and therefore, supporting these efforts through concessional financing and technological innovation is crucial, not only for developing countries but for the common global good.

H.E. Dr. Al-Mashat reviewed the state's efforts to transform climate challenges into development opportunities, noting that water desalination projects are among the most attractive areas for partnership with the private sector. However, she emphasized that these projects require a sustainable economic approach that balances production costs and service pricing.

H.E. Minister Al-Mashat emphasized the importance of technology transfer and localization in water desalination, especially since most water-scarce countries lack the advanced technologies used in this industry. She highlighted the significance of partnerships with institutions such as the IFC, EBRD, and EIB in financing these projects through Public-Private Partnership (PPP) models.