Planning Minister discusses the report on financing sustainable development during her participation at OMFIF

Egypt is making great strides in confronting climate change by shifting toward a sustainable green economy: Says Hala El-Said

Dr. Hala El-Said, Minister of Planning and Economic Development and Chairperson of the Board of Directors of The Sovereign Fund of Egypt (TSFE) participated – virtually- in the round table of the Official Financial and Monetary Institutions Forum OMFIF , which is the independent think tank for central banks, and economic policy, and public investment.

 Its (Official Financial and Monetary Institutions Forum) scope revolves around global policy and investment in central banks and sovereign funds. The forum also provides a neutral platform for public and private sector participation in countries around the world.
The forum was attended by Dr. Mahmoud Mohieldin, Executive Director of the International Monetary Fund (IMF) and Special Envoy of the Secretary-General of the United Nations on Financing the 2030 Agenda for Sustainable Development.
During her participation, Dr. Hala El-Said discussed the report on financing sustainable development in Egypt as the first national report on financing for development in the world.El-Said emphasized that Egypt, since the launch of its vision for sustainable development in 2016; has spared no effort in reforming its economy and improving its business environment, setting priorities, and implementing national programs that emphasize the principle of leaving no one behind.






She explained that Egypt is the first Arab country to release the Financing for Development Report under the umbrella of the League of Arab States, and in cooperation with all development partners.El-Said said that the report, in its thirteen chapters, provides an objective and in-depth analysis of a range of financing for development issues that significantly affect the achievement of the UN Sustainable Development Goals.The report provides an analytical review of the various development and economic sectors and their impact on the development situation in Egypt. It also contributes to highlighting the Egyptian state's efforts to mobilize and diversify financial resources to finance sustainable development projects. El-Said pointed to the pivotal role played by the Ministry of Planning in this report, as it provides the required national data and statistics to the authors, in addition to coordinating with the concerned national authorities to provide their vision on the content of the report.On the challenges facing the promotion of sustainable finance development in Egypt; El-Said said that these challenges are no longer entirely related to the inefficient distribution of resources available for projects that accelerate the achievement of the 2030 Agenda, but rather to a lack of available funding worldwide.El-Said stressed that this shortage was exacerbated by the repeated shocks to the global economy, which affected developed and developing countries alike, impeding investment in recovery, climate action, and achieving sustainable development goals.She explained that addressing financing challenges requires an evidence-based approach supported by effective institutions and well-coordinated public policies with frequent monitoring and evaluation to achieve the public good sought in the sustainable development goals.El-Said added that the report highlighted some unique challenges in the Egyptian context, most notably the presence of a large percentage of the population that does not deal with banks, the spread of the informal sector that provides informal financial services, and the limited role of non-bank financial institutions.El-Said explained that over the past few years, the Egyptian government has focused its efforts on creating a path for inclusive growth and prioritizing financial inclusion through many initiatives, in addition to the country's trend towards digital transformation, encouraging digital payments and investing in digital infrastructure.El-Said pointed to the state's emphasis on strengthening the role of the private sector in the economy through several policies, including the establishment of Egypt's sovereign fund as a reliable mechanism for the government to participate in the investment with local and foreign partners, and exploit untapped assets.




The Minister of Planning explained that despite the challenges posed by the Corona pandemic; Egypt remained at the forefront of foreign direct investment in Africa for the fifth year in a row in 2020/2021, reaching $5.9 billion, which represents 53% of foreign direct investment directed to North Africa.El-Said indicated that foreign direct investment increased in the first quarter of 2021/2022 by 4%, with inward investment in non-petroleum sectors increasing by 28%, including industry, financial services, construction, and information and communication technology, explaining that the United Kingdom represented 34%  of the total foreign direct investment followed by the United States.Dr. Hala El-Said reviewed Egypt's efforts to improve the business environment, which includes benefiting from and building on institutional and legislative reforms, such as the new investment and bankruptcy laws, as well as amending the Public-Private Partnership Law and amending the Capital Market Law.The efforts included launching the National Structural Reform Program, which includes a set of supporting pillars, including increasing the relative weight of the industrial, agricultural, communications, and information technology sectors in the Egyptian economy. Efforts also included improving the efficiency of the labor market and technical and vocational education and training through developing the technical education and vocational training system and setting the institutional framework to activate the role of the private sector in education and training, integrating the supply and demand sides in the labor market, and empowering women, youth and people with special abilities.Regarding Egypt's hosting of the COP 27 climate summit, El-Said said that the Egyptian government is making great strides in confronting climate change by shifting towards a green and sustainable economy and preserving environmental and natural resources.El-Said indicated that Egypt has made great progress in increasing the share of renewable energy in the energy mix to 20% in 2022, to reach 42% in 2035, through the implementation of major projects such as the Benban solar energy complex in Aswan, and the largest wind farms in the world in the Gulf of Suez (Jabal). oil), and e-mobility projects such as monorail and speed trains, and the conversion of gasoline-powered vehicles to natural gas.El-Said touched on preparing the "National Climate Change Strategy" and the "National Hydrogen Strategy" to encourage the use of blue and green hydrogen as a zero-emissions energy source, in addition to green incentives to stimulate private investment in green sectors.
El-Said pointed to The Sovereign Fund of Egypt (TSFE) participation in investments in projects to promote renewable energy, especially green hydrogen, water resources management, and waste management, and the state’s launch of environmental sustainability standards aimed at increasing the percentage of green projects in the investment plan, as well as Egypt’s issuance as the first country in MENA for green bonds.


After her participation, the Minister of Planning and Economic Development affirmed Egypt's full readiness to host the COP 27 climate summit in Sharm El-Sheikh and to continue its pioneering role toward reaching a consensus among all parties regarding the implementation of the "Paris Agreement" in a comprehensive manner.
 El-Said indicated that the summit opens the door to more opportunities for cooperation and partnerships, expands the scope of collective green recovery, and mobilizes all stakeholders to actively participate in climate action.