Al-Mashat: The European Bank for Reconstruction and Development’s investments in Egypt increased to 13.8 billion euros in 194 projects
More than 84% of these funds were directed to the private sector.
Dr. Rania Al-Mashat, Minister of Planning, Economic Development and International Cooperation and Governor of Egypt at the European Bank for Reconstruction and Development, received Mark Davis, Regional Director for the Southern and Eastern Mediterranean at the European Bank for Reconstruction and Development, who assumed his position succeeding Dr. Heike Harmgart. The two sides discussed joint cooperation files, reviewed the most prominent joint projects implemented during the past year, and prospects for future cooperation.
At the beginning of the meeting, Al-Mashat expressed her appreciation for the strategic and fruitful relations with the bank, considering Egypt a founding member, pointing to the continuous development of joint relations since 2012, as Egypt became an operational country for the European Bank for Reconstruction and Development, which contributed to increasing the volume of investments for the public and private sectors to about 13.8 billion euros in 194 projects, and more than 84% of these funds were directed to the private sector, which reflects confidence in the Egyptian economy and contributes to achieving our development goals.
The Minister of Planning and International Cooperation reviewed the framework for sustainability and financing for economic development, which was launched by the ministry following the formation of the new government, and which aims to maximize the benefit from planning tools, elements of the economic and social development plan, and external resources from development partners, in order to support the state’s development vision 2030, achieve maximum benefit for the Egyptian economy, and achieve qualitative and sustainable growth, through 3 pillars: formulating an economic development policy based on data and evidence, to provide information on needs and opportunities, bridge gaps in various development areas, build a flexible economy, enhance macroeconomic stability, and mobilize local and external financing to achieve sustainable development through an integrated national financing framework.
She also referred to the Ministry’s efforts in cooperation with development partners, through economic diplomacy, to push financing for development, explaining that over the past four years, the private sector in Egypt has received about $14.5 billion in soft financing from the private sector. She also reviewed the strategic partnership with the European Union and its developments during the past year, especially at the level of the Macroeconomic Support Mechanism and Budget Deficit Support (MFA), and the negotiations that are scheduled to begin in the coming days regarding the second phase worth 4 billion euros, in addition to the investment guarantee mechanism worth 1.8 billion euros.
The Minister of Planning, Economic Development and International Cooperation added that the current government is working to enhance efforts to stabilize the macroeconomic environment, and continue to implement structural reforms that stimulate the private sector and prepare the investment climate and business environment. The government also intends to move forward with the offering program in order to maximize the return on state-owned assets.
Al-Mashat added that the European Bank for Reconstruction and Development’s investments over the past year reflect the bank’s great confidence in the Egyptian economy and the attractiveness of local and foreign private sector companies to external financing, in addition to the success of the state’s efforts, especially at the level of structural reforms in the renewable energy sector, which enabled the bank, as a major partner in the energy axis of the “Novi” program, to attract innovative financing for many projects.
She pointed out that the relationship between Egypt and the European Bank for Reconstruction and Development has witnessed remarkable progress over the past five years, as we worked together at various levels, paving the way for achieving the targeted development rates in Egypt, stressing that this relationship reflects the continuous progress in cooperation between the two sides and the success in building strong and influential partnerships.
The meeting witnessed discussions to enhance cooperation with the bank in the fields of green finance and renewable energy, as these sectors represent the future of development in Egypt, in addition to the field of transportation and preparing partnership projects between the public and private sectors, confirming the importance of continuing to open horizons of cooperation between the private sector from both sides, in light of its vital role in enhancing development efforts.
At the end of the meeting, the two sides stressed the importance of joint work and coordination to enhance investments and meet development needs in Egypt, while committing to strengthening the strategic partnership between Egypt and the European Bank for Reconstruction and Development.
