Minister of Planning and International Cooperation Participates in BRICS New Development Bank Governors’ Discussion on Sustainable Development Financing in Emerging Markets and Developing Countries

 

Egypt’s Governor at the New Development Bank: Prioritizing and integrating public investments, development finance, and the private sector drive development efforts*

The New Development Bank is an effective mechanism for enhancing development efforts in BRICS countries*

Progress towards the 2030 Sustainable Development Goals requires linkage between development efforts and climate action*

 

H.E. Dr. Rania A.  Al-Mashat, Minister of Planning, Economic Development, and International Cooperation and Egypt's Governor at the New Development Bank, participated in the Governors' discussion of the New Development Bank on "Unlocking Financing for Sustainable Development in Emerging Markets and Developing Countries." This took place during the Ninth Annual Meeting of the Bank’s Board of Governors, held from August 28-31, 2024, in Cape Town, South Africa.

The opening remarks were delivered by Ms. Dilma Rousseff, President of the New Development Bank, Mr. Jin Liqun, President of the Asian Infrastructure Investment Bank, and Ms. Ngozi Okonjo-Iweala, President of the World Trade Organization, along with the Governors from Brazil, Russia, India, China, South Africa, Bangladesh, and the UAE.

 

In her speech, the Minister emphasized that enhancing the partnership between the public and private sectors and creating space for private sector involvement is crucial for encouraging investments. H.E. Dr. Al-Mashat stressed that governments need to allocate part of their investment budget to implement priority projects. She also highlighted the need for clear prioritization, particularly in infrastructure projects that attract investments and foster public-private partnerships.

 

H.E. Minister Al-Mashat also addressed the financing gaps facing development efforts, underscoring the importance of filling these gaps through blended finance, which combines public investments with other available financing from various stakeholders. She noted that, given the low levels of blended finance, integration between multilateral development banks and governments is crucial for advancing development efforts.

 

The Minister added that governments need to clearly define their priorities and the level of public investment they will provide, while maximizing country ownership principles to identify actual needs from multilateral development banks and encourage private investments. H.E. Dr. Al-Mashat emphasized that clarifying priorities in economic and social development plans enhances effective cooperation with multilateral development banks and attracts private sector investments.

 

In related remarks, H.E. Minister Al-Mashat stressed that cooperation among Global South countries and increasing efforts to exchange successful development practices is critical for helping developing countries overcome their challenges.

 

H.E. Dr. Al-Mashat also discussed the significant interconnection between development efforts and climate action, noting that this linkage cannot be ignored in the pursuit of the 2030 Sustainable Development Goals. Egypt has launched the country platform for the "NWFE" program, which includes priority projects in the fields of mitigation and adaptation in water, food, and energy sectors. The program aims to implement projects that achieve sustainable development goals while focusing on climate action. This allows Egypt to utilize innovative climate finance tools, such as debt swaps for climate action, project preparation grants, and enhancing cooperation among multilateral development institutions.

 

H.E. Minister Al-Mashat concluded by highlighting the importance of integrating government financing with contributions from multilateral development banks or bilateral partnerships to minimize costs. She noted that one of the major challenges is that the financing required for development and climate action will continue to increase over time. Despite the vital role of development finance, it cannot close the ever-expanding gap. Therefore, developing and emerging countries must adopt a multifaceted approach to mobilize financing for sustainable development.