Al-Mashat:
• We work in integration with international partners and relevant entities to increase innovative financing tools for the private sector in Egypt.
• We collaborate with the Federation of Egyptian Banks to advance the financial sector's benefit from international partnerships through credit lines and technical support.
• Development financing for the private sector boosts economic growth, employment, and increasing local and foreign investments.
H.E. Dr. Rania A. Al-Mashat, Minister of Planning, Economic Development and International Cooperation and Governor of Egypt at the European Bank for Reconstruction and Development (EBRD), witnessed the signing of a $100 million sustainability-linked financing agreement between the EBRD and Banque Misr.
The agreement was signed by Mr. Hisham Okasha, CEO of Banque Misr, and Mr. Francis Malige, Managing Director and Head of Financial Institutions Business Group at the EBRD.
The event was attended by Mr. Mark Davis, EBRD Managing Director for the Southern and Eastern Mediterranean (SEMED) region, and senior executives from both sides.
H.E. Dr. Al-Mashat emphasized that the Ministry works in integration with international partners to mobilize resources and stimulate private investment, particularly in green transformation projects, within a comprehensive vision for achieving sustainable development.
Consequently, development financing for the private sector has risen to over $15.6 billion since 2020, with more than 40% directed to financial institutions.
She noted that the Ministry is working, through the cooperation protocol signed with the Federation of Egyptian Banks last June, to advance the financing tools available to the banking sector through the Hub for Advisory, Finance, and Investment for Enterprises, "HAFIZ" platform.
H.E. Minister Al-Mashat commended the strategic partnership with the EBRD, which allocates a significant portion of its portfolio – exceeding 28% – to financial institutions, as part of its support for the private sector and its role in boosting economic activity. This also reflects a true understanding of market needs and the skills and capabilities of the Egyptian banking sector.
She also lauded the unwavering efforts of the Central Bank of Egypt and the Financial Regulatory Authority in regulating the market, facilitating the entry of new products, and activating innovative financing tools, in addition to the endeavors in the field of interbank financial cooperation, considering it a key element in the dimensions of partnership with the banking sector.
H.E. Dr. Al-Mashat added that the EBRD embodies the role of international financial institutions in driving the shift towards private sector participation to achieve climate and sustainable development goals, as it allocates more than 80% of its global financial portfolio to support the banking sector, thereby enhancing the sector's role as a key engine for the economy.
H.E. Minister Al-Mashat also touched upon the "NWFE" platform, which has become a global model cited in international forums, as stated in the concluding statement of the Fourth International Conference on Financing for Development. This reflects the significant effort made by the state in partnership with various financing institutions. She pointed to the importance of making such tools available through similar platforms to other countries, as it is not just about financing, but about how to integrate these tools into the national development structure.
Regarding Egyptian economic indicators, H.E. Dr. Al-Mashat pointed out that despite challenges, the economy recorded a growth of 4.7% in the third quarter of the current year, exceeding expectations, in addition to positive forecasts for the tourism, industrial production, and private investment sectors, where private investments have increased to over 60%, which enhances job creation and builds a more resilient economy.
It is worth noting that during the "Development Finance to Foster Private Sector-Led Growth & Jobs" Conference, the Ministry of Planning, Economic Development and International Cooperation signed a cooperation protocol with the Federation of Egyptian Banks. This aims to promote dialogue between the banking sector and international development partners, particularly in supporting small and medium-sized enterprises, and cooperating to maximize the benefit from the Hub for Advisory, Finance, and Investment for Enterprises, "HAFIZ" platform, which the Ministry launched as one of the innovative mechanisms to advance the private sector empowerment agenda by facilitating access to development financing and technical services.
Under the protocol, the Ministry of Planning, Economic Development and International Cooperation, through its "Private Sector Engagement Unit," will share requests from small and medium-sized enterprises applying to the "HAFIZ" platform for financial and technical support with member banks of the Federation.
This includes providing necessary information and data to the banks about these projects.
The Ministry, in cooperation with the Federation, will also grant member banks the authority to register on the "HAFIZ" platform as users and benefit from the data, financing and technical opportunities it provides from international development partners.
The Ministry will also enable interested banks to participate on the platform as providers of financial or consulting services by listing their financing and training programs on the platform.