Egypt’s Planning Minister Discusses Sustainable Development Financing Efforts at IsDB Annual Meeting in Riyadh

H.E.Dr. Hala El-Said, Minister of Planning and Economic Development, and Egypt’s Governor to the Islamic Development Bank Group, participated in a panel discussion entitled “Midway Momentum: Celebrating the Islamic Development Bank in its Fiftieth Year; Charting a Path to Scale Up Financing for Sustainable Development Goals.” The discussion took place on the sidelines of the 49th annual meetings of the Bank Group, held in Riyadh, the capital of the Kingdom of Saudi Arabia, from April 27 to 30, coinciding with the Bank’s Golden Jubilee celebration marking 50 years since its establishment.

The discussion aimed to exchange ideas, lessons learned, and policy recommendations among development leaders and country representatives regarding gaps in financing for sustainable development goals and shortcomings in the current global financial system in addressing these gaps. Dr. Mohamed Al-Jasser, President of the Islamic Development Bank Group, Amina Mohammed, Deputy Secretary-General of the United Nations, Amir Hamza Sayed, Leader of the Community of Practice on Sustainable Development Goals (COP), Faisal Al-Ibrahim, Saudi Minister of Economy and Planning, Dr. Sri Mulyani Indrawati, Indonesian Minister of Finance, Yeli Edon, Nigerian Minister of Finance and Budget, Kristalina Georgieva, Managing Director of the International Monetary Fund, Dr. Akinwumi Adesina, President of the African Development Bank, Dr. Mahmoud Mohieldin, Special Envoy of the United Nations for Financing the 2030 Agenda, participated in the session. Dr. Rami Ahmed, Chief Adviser to the President of the Islamic Development Bank Group, moderated the session.

During her speech, Dr. Hala El-Said stated that Egypt, like other countries worldwide, faces immense challenges at this time, ranging from the COVID-19 pandemic to wars in Ukraine and Gaza and climate change. All these events have pushed countries to adopt unconventional policies. The challenges facing Egypt and other middle-income and developing countries include disruptions in supply chains due to COVID-19 and geopolitical challenges, leading to increased food and energy prices. This situation prompted central banks to raise interest rates rapidly, negatively affecting loan costs and the difficulty of obtaining financing. It also led to a reduction in government budgets and limited financial support for vulnerable groups in society. Therefore, Egypt has taken serious steps to address these challenges and utilized the COVID-19 crisis to implement structural reforms. We focused on monetary and financial reforms and managed to achieve stability in the exchange rate through a flexible system. We also managed to control inflation, which was high due to the increased costs of our food and energy imports. At the same time, we began implementing a large-scale development program, the Decent Life Initiative, which targets multidimensional poverty. The aim of this initiative is to improve the quality of life for more than half of the population, especially in rural areas, by providing sanitation, clean water, electricity, decent housing, communication services, and job opportunities. In addition, we expanded the “Takaful and Karama” cash transfer program to include 12 million women, accounting for 75% of total beneficiaries, focusing on the female population.

El-Said pointed out the significant investment in infrastructure to make the economy more resilient and adaptable to external challenges by building 58 ports, including 18 commercial ports, and connecting this port network to railways and main roads. She added that our goal is to connect the sea with the land through 18 ports on the Red Sea and Mediterranean coasts to enhance trade and exports. Egypt focuses on key economic sectors such as manufacturing, agriculture, and information technology to make the economy more resilient. Most of Egypt’s population is young and under the age of forty, so the youthful workforce is of great importance to us. Investing in education and vocational training is vital, in addition to infrastructure. Regarding financing, we are exploring innovative ways to bear the costs of investment in energy and environmental projects and improve the competitiveness of the economy.

El-Said added, “We are the first country to issue sustainable bonds in the Chinese market and are working on developing financial laws to support environmental investments and empower women. We invest the proceeds of the bonds in climate development projects and direct public investments towards environmental goals. An environmental sustainability guide has been developed to guide projects towards sustainability. Debt swaps with some countries have also been improved to alleviate the financial burden. The main goal is to attract the private sector to invest in vital projects, with the necessary financial support, and we must communicate with the private sector through public dialogue.”

El-Said explained that one of the main concerns expressed by the private sector is the extent of public sector intervention, especially in Egypt during the period from 2011 to 2014, when the country witnessed political disturbances. The government made large investments to upgrade infrastructure, such as ports, roads, and energy systems, and the private sector expressed concern about the government’s role in these efforts. To address this issue, the government launched a national policy document as a roadmap that defines the state’s role in various sectors as a regulator of economic activity according to market mechanisms and how the state can exit some activities. We have also implemented many reforms to simplify our business environment and trade policies in close cooperation with private companies.

El-Said emphasized that cooperation with the international community is of utmost importance, especially for developing countries. These countries need more foreign direct investment and support for projects, studies, and education. They have a large pool of talented youth who need support. Although developing countries represent 85% of the world’s population and produce 45% of global goods, partnering with them will be beneficial for all.”