In conjunction with the high-level events of the United Nations General Assembly in New York and within the framework of cooperation between Egypt and the World Economic Forum, H.E. Dr. Rania A. Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, participates in the World Economic Forum’s "Sustainable Development Impact Meetings"

“Al-Mashat”: The adoption of the "Pact for the Future" revitalizes multilateral cooperation on the global stage to address developmental and geopolitical challenges.

 Developing and emerging countries face multiple crises that hinder their ability to achieve green transitions.
 

 It is essential to arrive at innovative solutions to enhance private sector investments in climate action.

 We are working to support macroeconomic stability through governance of investment expenditure and the support of structural reforms that incentivize the private sector.

 

During the high-level week of the United Nations General Assembly in New York, H.E. Dr. Rania A. Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, participated in the annual "Sustainable Development Impact Meetings" of the World Economic Forum. This event represents a strong partnership between the Arab Republic of Egypt and the World Economic Forum, where leaders from both the public and private sectors convene to discuss the future of development and related core issues.

 

Private Sector Financing for Climate Action

 

During the meetings, the Minister participated in a panel discussion titled "Private Climate Finance: Consistency, Bankability, and Impact," alongside Dr. Mahmoud Mohieldin, Special Envoy on Financing the 2030 Agenda for Sustainable Development; Mr. Jay Collins, Vice Chairman of Citibank; Ms. Anmay Dittman, Managing Director at Blackrock; Mr. Bertrand Millot, Head of Sustainability at CDPQ, and other representatives from the World Economic Forum and international institutions.

 

In her opening remarks, the Minister of Planning, Economic Development, and International Cooperation emphasized that 70% of the infrastructure investments necessary for a transition to low-carbon energy must occur in emerging markets and developing countries, which are facing multidimensional crises, including political and economic instability, as well as environmental challenges.

 

Regarding energy transition, H.E. Dr. Al-Mashat referenced a report from the Financial Systems Preparedness Network for the Green Transition (2023), which indicated that the preferential financing needed for clean energy investments in emerging markets and developing countries—excluding China—ranges between $80 to $100 billion annually by 2030 to stimulate private sector financing. The Minister added that according to a joint report by the International Finance Corporation and the International Energy Agency (2030), investments in clean energy in most emerging markets and developing countries heavily depend on public entities.

 

The H.E. Minister Al-Mashat clarified that developing countries are not in a position to rely solely on limited national public resources to support increased clean energy investments. Moreover, emerging markets and developing countries urgently require innovative solutions to leverage private sector investments in climate initiatives to ensure development while facilitating the transition to a low-carbon economy.

 

As co-chair of the Mobilizing Investment for Clean Energy in Emerging Economies Network, launched at Davos 2024 to promote clean energy in Global South countries, H.E. Dr. Al-Mashat noted collaboration with the Forum to showcase Egypt's successful practices in the energy sector. This includes Egypt's efforts in launching a Feed-in Tariff program for electricity, which has attracted significant private sector investments in renewable energy, particularly in the Benban Solar Park, in addition to implementing innovative financial solutions through the national platform of the "NWFE" program.

 

Advancing a Global Agenda through a Geopolitical Recession

 

In a related session, H.E. Minister Al-Mashat participated in a discussion on how to advance the global agenda amid geopolitical tensions, alongside Ms. Kristalina Georgieva, Managing Director of the International Monetary Fund; Mr. Alexander Stubb, President of Finland; Mr. Mohammad Muizzu, President of the Maldives; Ms. Alicia Bárcena Ibarra, Mexican Secretary of Foreign Affairs; Mr. Taye Atskeselassie, Ethiopian Minister of Foreign Affairs; Jasem Mohamed AlBudaiwi. Secretary General of the Cooperation Council for the Arab States of the Gulf;  Mr. Ramon Laguarta, CEO of PepsiCo; Ms. Lynn Martin, President of the New York Stock Exchange; and Mr. Ian Bremmer, President and Founder of the Eurasia Group.

 

In her remarks during the session, H.E. Dr. Rania A. Al-Mashat pointed out that geopolitical tensions impact global economic growth rates. She noted that due to debt levels, the COVID-19 pandemic, and associated geopolitical tensions, low-income countries are unable to meet basic needs such as health and education services. Nearly 60% of countries eligible for international development support face significant risk or are already experiencing debt distress. Despite economic recovery and improvements in some debt ratios, external debt accumulation continues to outpace Gross National Income and export revenues for many countries, a situation exacerbated by the current political stagnation.

 

In this context,H.E. Minister Al-Mashat presented several recommendations to advance the global development agenda amid political stagnation, including debt restructuring and utilizing debt-for-development swap instruments, focusing on positive climate adaptation, and integrating sustainable development goals into debt relief discussions. She also emphasized the importance of implementing economic development policies that support growth and employment while achieving inclusive and sustainable development.

 

Path to Sustainable Growth

 

As part of the World Economic Forum's Sustainable Development Meetings, the Minister participated in the session titled "Path to Sustainable Growth," with Mr. Esther Dweck, Brazilian Minister of Public Management and Innovation in the Public Sector, and Ms. Vera Songwe, Chair of the United Nations Liquidity and Sustainability Facility, moderated by Stephanie Flanders is Senior Executive Editor for Economics at Bloomberg and head of Bloomberg Economics.

 

During the session, H.E. Minister Al-Mashat commended the United Nations General Assembly's adoption of a significant agreement known as the "Pact for the Future," which is the broadest international agreement in years. She noted that it comes at a critical time when multilateralism faces significant risks and aims to elevate the values of multilateral cooperation to address today’s challenges, particularly those faced by developing countries in their efforts toward achieving sustainable development. Additionally, she discussed the need to restructure the global financial system to make it more responsive and suited to current economic developments.

 

H.E. Dr. Al-Mashat also addressed the macroeconomic and structural reforms undertaken by Egypt with support from international financial institutions and development partners in light of global geopolitical tensions. She highlighted the Ministry’s efforts to establish a new framework for adopting a comprehensive approach to enhancing sound growth by focusing on data- and evidence-based policies.

 

H.E. Minister Al-Mashat continued that the Ministry's new framework, following the integration of the portfolios of planning, economic development, and international cooperation, aims to build a sustainable economy for the future to ensure macroeconomic stability and implement structural reforms that enhance competitiveness, overall financial capacity, and the green transition, as well as improve resource allocation through an integrated framework that mobilizes local and international financing for priority sectors and accelerates progress toward achieving the Sustainable Development Goals.

 

H.E. Dr. Al-Mashat affirmed Egypt's commitment to building a diverse and robust economy capable of facing global and local challenges by focusing on comprehensive economic reforms, investing in human capital, and enhancing collaboration with the private and international sectors to achieve sustainable development and inclusive growth.

 

Balancing Quality and Growth Rate

 

H.E. Minister Al-Mashat also participated in a session entitled "Balancing Quality and Growth Rate," with Mr. Wamkele Mene, Secretary-General of the African Continental Free Trade Area, and Dr. Mahmoud Mohieldin, Executive Director of the International Monetary Fund and Special Envoy of the UN Secretary-General on Financing for Development.

 

During her remarks, H.E. Dr. Al-Mashat explained that the Egyptian government has prioritized two key areas to guide the development path and ensure sustainable, qualitative, and inclusive growth: industrial development through investments in infrastructure and renewable energy, and human development through investments in health, education, and social protection.

 

H.E. Minister Al-Mashat elaborated on the role of the Ministry of Planning, Economic Development, and International Cooperation in achieving fiscal discipline and governance of investment expenditure, stating that the Ministry works closely with all stakeholders to identify public investment priorities in key sectors outlined in the investment plan, with the aim of directing investments towards priority projects and areas.

 

H.E. Dr. Al-Mashat emphasized the Egyptian government’s focus on policies that promote inclusive economic opportunities, particularly for the most vulnerable groups, in alignment with Egypt's Vision 2030, which targets economic diversification, infrastructure development, and human capital investment.