On the Sidelines of her Participation in the Meetings of the African Development Bank in Sharm El-Sheikh: The Minister of Planning and Economic Development Meets with the Director of the French Development Agency to Discuss a Number of Local and International Issues

The Minister of Planning and Economic Development Dr. Hala El-Said met with the Director General of the French Development Agency Mr. Remy Rioux to discuss a number of local and international issues, the macroeconomic perspective, the Sovereign Fund for Energy and Water Desalination, on the sidelines of the activities of the African Development Bank meeting hosted by Egypt in Sharm El-Sheikh this year. The meeting was attended by Director of Office of the French Development Agency in Egypt Clemence Vidal de Lablache.

During the meeting, Dr. Hala El-Said explained that despite global and geopolitical challenges, and negative economic forecasts by international financial institutions, preliminary indicators estimate the real GDP growth rate at about 4.2% of GDP in the first half of fiscal year 2022/2023; clarifying that Egypt has taken serious measures to ensure the implementation of structural reforms, whether in the short or long term, noting that all sectors registered positive growth in the first half, with the exception of simple sectors. The minister also added that some sectors are expected to continue their positive trend in the second half, represented in the telecommunications sector, the Suez Canal and agriculture, explaining that with regard to the next fiscal year, the real growth rate is expected to be in the range of 4.1%, due to the prevailing uncertainty attributed to high inflation globally, and locally, and the exchange rate changes. She continued that with regard to unemployment, no significant change is expected and the rate will be around 7.6% next year.

Regarding the Sovereign Fund for Energy and Water Desalination, El-Said explained that the Sovereign Fund of Egypt is currently representing one of the most pivotal partners, by being the government arm acting as a catalyst for the participation of the private sector and the creation of a favorable ecosystem through which international and private cooperation can flourish. She further indicated the accomplishments of the Sovereign Fund of Egypt like enhancing the participation of the private sector, especially in the field of renewable energy. Additionally, she followed up that the Fund is preparing standards for sustainable financing in partnership with the Central Bank, along with the preparation of a package of green incentives for the private sector in partnership with the Ministries of Finance and Environment.

El-Said added that Egypt has taken great steps to ensure a sustainable and capable environmental system, as it already possesses the necessary infrastructure to meet the growing demand for energy security, stressing that Egypt included this matter on its priority agenda, in addition to taking major steps to build capacities in the field of renewable energy and ensure its adequacy, adding that The trend towards a clean and green transformation has become a major focus in the structural reforms program. She also emphasized that the endeavor to target the real sector and develop the role of the private sector in the economy, especially attracting foreign and domestic investments in green activities and energy sectors

Moreover, El-Said added that Egypt has already established an ecosystem suitable for the private sector, with a list of many green projects in all governorates of the Republic, explaining that the country is in the process of developing and rehabilitating wind plants to raise their capacity. Furthermore, El-Said announced that the fund is close to launching the “Green for Growth” platform, in response for the swiftly growing number of projects in the fields of clean energy, water desalination, green transportation, and green digital infrastructure.

Al-Saeed also referred to the launch of the fund EGYCOP

during COP27 as the first direct investment company in Egypt to invest in the voluntary carbon market, explaining that the platform is designed to increase private sector participation in financing climate action projects, while taking advantage of the growing global demand for carbon credits and certificates. She followed up that regarding the investment, the Sovereign Fund Egypt is working hard To support a just energy transition, noting the signing of 9 prominent framework agreements during the Conference of the Parties for the production of green hydrogen, with expected investments of about $85 billion, taking advantage of the unique natural and logistical resources available in Egypt, adding that a green water desalination program is being implemented.

At the end of the meeting, the two sides discussed the global financial infrastructure summit, which will address four main axes, including restoring fiscal space for countries facing short-term challenges, especially the most indebted ones, promoting private sector development in low-income countries, and encouraging investment in "green" infrastructure as the energy transition in emerging and developing countries, and mobilizing innovative financing for countries vulnerable to climate change.