Dr. Rania Al-Mashat, Minister of Planning, Economic Development and International Cooperation, Comments on the Outcomes of the Development Committee Held during the Spring Meetings of the International Monetary Fund and the World Bank

 Egypt is implementing a clear approach to empower the private sector and mobilize private capital to increase employment rates.

Employment-stimulating sectors are among the top priorities of the state, including tourism, value-added industries, and agricultural businesses.

Strengthening our partnership with the World Bank to benefit from the Joint Capital Markets Program (J-CAP) to support local capital markets.

Coordinating efforts with various ministries to prepare an executive plan to support growth and employment and implement structural reforms, focusing on a number of key sectors.

Developing innovative investment guarantee products in cooperation with the Multilateral Investment Guarantee Agency (MIGA) to increase financing mechanisms for the private sector.

H.E. Dr. Rania A. Al-Mashat, Minister of Planning, Economic Development and International Cooperation and Egypt's Governor at the World Bank, affirmed that the Ministry is working in coordination with various ministries to prepare an executive plan aimed at supporting growth and employment rates. This plan focuses on several key sectors, including foreign direct investment, industrial development and trade, labor markets and employment, in addition to enhancing macroeconomic stability and supporting economic policies in collaboration with the World Bank Group as a knowledge partner.

These remarks came following Dr. Al-Mashat’s participation in the Development Committee meetings. The committee was chaired by Mr. Ajay Banga, President of the World Bank Group, and attended by Ms. Kristalina Georgieva, Managing Director of the International Monetary Fund. The committee is one of the most prominent forums that brings together the Governors of the World Bank to discuss development and international financing issues.

H.E. Dr. Al-Mashat added that Egypt places private sector empowerment at the forefront of its priorities within the framework of economic and structural reform. The private sector is considered a key driver of development efforts and employment creation. She outlined several vital sectors in this context, including tourism — which provides millions of job opportunities — as well as industry, particularly non-oil value-added manufacturing, and agribusiness.

H.E. Minister Al-Mashat also pointed to efforts by the ministry to enhance its partnership with the World Bank by leveraging the Joint Capital Markets Program (J-CAP) to support local capital markets, in cooperation with the International Finance Corporation (IFC). She noted several ongoing programs with international financial institutions, in partnership with the Micro, Small, and Medium Enterprises Development Agency (MSMEDA), aimed at supporting and growing this sector and increasing financing opportunities for various companies.

The Development Committee’s conclusions emphasized that the World Bank Group’s strategic direction is to create jobs by encouraging entrepreneurship and fostering private sector development. It stressed the necessity for a three-pronged approach to support private sector development and job creation: establishing employment-supportive infrastructure, strengthening governance and business-enabling policies in collaboration with governments, and stimulating the mobilization of private capital. The World Bank considers accelerating job creation a top priority.

The committee also highlighted the importance of enabling the private sector to create more jobs by improving supportive policies and establishing a stable regulatory environment that allows the sector to operate efficiently. It emphasized investment in human capital through proper nutrition, healthcare, education, and skills development, along with mobilizing private capital to create more and better-quality jobs. Special attention was also given to developing micro, small, and medium-sized enterprises (MSMEs), which represent about 90% of all companies and employ nearly 75% of the workforce in emerging markets and developing economies.

The committee’s conclusions also underscored the importance of private sector financing and the need to expand the scope of the Joint Capital Markets Program (J-CAP), which is the World Bank’s main tool to support local capital markets, by intensifying its activities and broadening its engagements.