Egypt Hosts High-Level Event at the “Summit of the Future” to Leverage Innovative Financing Tools for Sustainable Development

 

 H.E. Dr. Rania Al-Mashat: The global financial system is experiencing profound transformations, placing significant challenges on developing nations’ efforts to achieve the 2030 Agenda.

An integrated, evidence-based financial framework is crucial for mobilizing private sector investments and international financing to address development gaps across various sectors.

 UNDP Regional Director warns that achieving the Sustainable Development Goals (SDGs) is becoming increasingly difficult due to rising economic pressures and geopolitical challenges.

The European Investment Bank applauds Egypt’s NWFE program, underscoring the need for greater private sector engagement and increased climate action efforts.

 

The Ministry of Planning and Economic Development, in collaboration with the United Nations Development Programme (UNDP) and the European Union, hosted a high-level event titled “Tapping Innovative Financing Instruments to Accelerate Sustainable Development: A Roadmap for Just Development Finance” during the “Summit of the Future” and the High-Level Week of the United Nations General Assembly in New York. The event gathered prominent speakers, including Dr. Abdallah Dardari, UNDP Regional Director for Arab States; Dr. Markus Berndt, Head of the European Investment Bank (EIB) Group Representation to the UN and the United States; Dr. Mahmoud Mohieldin, UN Special Envoy for Financing the 2030 Agenda; Anna Bjerde, Managing Director of Operations at the World Bank; and Alessandro Fracassetti, UNDP Resident Representative in Egypt. Together, they discussed how innovative financial instruments can accelerate sustainable development and fill the existing financing gaps in developing nations.

 

H.E. Dr. Rania Al-Mashat, Egypt’s Minister of Planning, Economic Development & International Cooperation, delivered the opening address, emphasizing the importance of the event in the current global context. Dr. Al-Mashat highlighted that the global financial system is undergoing rapid and profound changes, with significant implications for developing and least developed countries. She outlined key challenges, such as multidimensional poverty, climate change, poor natural resource management, and global health crises, all of which are hindering progress toward achieving stability, sustainable development, and economic growth.

 

Dr. Al-Mashat pointed out that these global challenges are creating immense financial pressures on developing nations, making it increasingly difficult for them to meet their international commitments under the 2030 Agenda for Sustainable Development. Many of these countries, she noted, are struggling to preserve the developmental progress they have already achieved and are finding it hard to maintain economic stability in the face of escalating global uncertainties.

 

She noted Egypt’s partnership with UNDP, the European Union, and the European Investment Bank, which has been instrumental in supporting the country’s development efforts. The event, she explained, was aimed at exploring ways to effectively utilize financial resources for sustainable development and addressing sectoral gaps that continue to hamper progress. Dr. Al-Mashat emphasized that financing development initiatives should not fall solely on the shoulders of governments. Rather, there is a growing need for a collaborative approach involving international financial institutions, multilateral development banks, and the private sector. She stressed the importance of blended finance mechanisms that integrate public and private sector investments to bridge the financial gaps in development sectors.

 

Reflecting on the specific challenges faced by developing nations—particularly those with high levels of debt and rising financing costs—Dr. Al-Mashat reiterated the need for a comprehensive, integrated financial framework. Such a framework, she explained, would ensure that financing is aligned with the needs of sustainable development, while also taking into account climate finance as a key component. To this end, she highlighted Egypt’s ongoing efforts in partnership with UNDP to develop a national financing strategy that incorporates climate considerations and supports sectoral development.

 

Dr. Al-Mashat also discussed the Ministry’s integrated framework for sustainable economic growth following its merger with the Ministry of International Cooperation. This framework is built on three core pillars: fostering constructive partnerships among all stakeholders, ensuring effective national coordination, and promoting international cooperation. The framework relies on evidence-based policies and data to identify and address gaps in various development sectors. It also emphasizes the importance of macroeconomic stability, structural reforms to enhance competitiveness, improving the business environment, and promoting resilience in fiscal policies. Additionally, the framework prioritizes the mobilization of both domestic and international financing to accelerate progress toward achieving the SDGs, with a special focus on channeling resources into priority sectors and stimulating private sector investments.

 

Dr. Abdallah Dardari, UNDP’s Regional Director for Arab States, echoed Dr. Al-Mashat’s concerns, stating that the international community is facing mounting challenges in its pursuit of the SDGs. He pointed out that the current global economic environment, characterized by rising interest rates, higher borrowing costs, and shrinking fiscal space, is putting immense pressure on both businesses and governments. This, he noted, has made it even more difficult to mobilize the necessary financial resources to achieve sustainable development goals. Dr. Dardari stressed the importance of innovative, low-cost financing solutions and the need to increase investments, particularly in infrastructure, to bridge development gaps. Geopolitical tensions, he warned, are further complicating the path toward achieving the SDGs, making it all the more important for countries to adopt innovative financial strategies.

 

In his remarks, Dr. Markus Berndt, Head of the EIB Group Representation to the UN and the United States, affirmed the European Investment Bank’s commitment to working closely with countries to support infrastructure development and strengthen the private sector. Dr. Berndt outlined the EIB’s top priorities, which include enhancing financing capacity, scaling up climate action, mobilizing private sector investments, improving development effectiveness, and fostering multilateral cooperation. He praised Egypt’s NWFE program, describing it as a prime example of how international partnerships can be leveraged to maximize the effectiveness of multilateral cooperation and achieve sustainable development goals. The NWFE program, he said, demonstrates the power of collaboration in addressing both development and climate challenges.

 

Dr. Mahmoud Mohieldin, UN Special Envoy for Financing the 2030 Agenda and Executive Director at the International Monetary Fund (IMF), addressed the pressing global challenges, particularly in food security. He revealed that 350 million people worldwide are currently suffering from hunger, while 50 million more are at risk of famine. Dr. Mohieldin highlighted the positive strides made in the energy sector but cautioned that the global water crisis is becoming increasingly alarming. This, he explained, underscores the urgent need for greater investments in water infrastructure and resource management to prevent further deterioration of the situation.

 

In closing, the high-level event underscored the critical importance of mobilizing innovative financing tools, engaging the private sector, and fostering international cooperation to address the pressing challenges faced by developing countries. The discussions reiterated the need for a comprehensive approach to financing that integrates climate action, infrastructure development, and sectoral investments, all aimed at accelerating progress toward achieving the SDGs by 2030.