Minister of Planning, Economic Development and International Cooperation Receives President of the European Bank for Reconstruction and Development to Review Various Joint Cooperation Files

During her visit to Egypt…

 

Minister of Planning, Economic Development and International Cooperation Receives President of the European Bank for Reconstruction and Development to Review Various Joint Cooperation Files

 

 

 

 

Dr. Rania Al-Mashat:

 

 

Egypt is working to achieve comprehensive economic development led by the private sector and based on tradable and export-oriented sectors.

 

We are committed to capping public investments to make room for domestic and foreign investments and reduce state involvement in economic activities.

 

2024 witnessed the highest rate of development financing for the private sector over 5 years, and for the first time, it exceeded government financing.

 

We aim to launch an executive plan to drive economic growth based on foreign direct investment, industry, and human capital sectors.

 

Integration of efforts among various state entities to advance the industrial sector, leveraging the vast potential of the Egyptian economy.

 

We have observed a positive development in private sector investments in the first and second quarters of the current fiscal year, supported by economic and structural reforms.

 

We are continuing joint work to implement the energy pillar targets of the "NWFE" program and mobilize renewable energy investments worth $10 billion, equivalent to (EGP 506 billion).

 

EBRD President:

 

We invested €1.5 billion (EGP 86 billion) in Egypt last year and are committed to injecting more investments.

 

Our relationship with Egypt is diverse across various fields, and we have significant opportunities to contribute to more development sectors.

 

The meeting addresses preparations for the Annual Meetings and Business Forum of the Bank in the United Kingdom during May.

 

H.E. Dr. Rania A. Al-Mashat, Minister of Planning, Economic Development and International Cooperation and Egypt's Governor at the European Bank for Reconstruction and Development (EBRD), received Ms. Odile Renaud-Basso, President of the EBRD, at the Ministry's headquarters in the New Administrative Capital, as part of her official visit to Egypt.

 

The meeting touched on preparations for the 2025 Annual Meeting and Business Forum, scheduled to take place in London from May 13 to 15. It also discussed the events aimed at strengthening cooperation between the Egyptian government and EBRD in various fields, within the framework of the strategic partnership between the two sides.

Egypt is one of the founding members of the Bank and is considered one of the largest countries of operation worldwide.

The meeting also covered the current and future cooperation portfolio and efforts to boost investment in private sector projects.

 

 

EBRD Investments in Egypt

 

At the beginning of the meeting, H.E. Dr. Rania Al-Mashat welcomed the EBRD President, emphasizing the strategic partnership with the Bank, through which investments exceeding €13.8 billion, equivalent to (EGP 790 billion), have been injected into the Egyptian economy since 2012, with over 86% of these investments directed to the private sector.

 

H.E. Dr. Al-Mashat affirmed that the EBRD's investments during last year reflect the Bank’s significant confidence in the Egyptian economy and the attractiveness of local and foreign companies for obtaining external financing.  

 

H.E. Minister Al-Mashat pointed to the successes achieved by the state, particularly in the field of structural reforms for the renewable energy sector, which enabled the Bank, as a key partner in the energy pillar of the "NWFE" program, to attract innovative financing for numerous projects.

 

For her part, Ms. Odile Renaud-Basso, President of the EBRD, reiterated the depth of relations between the Bank and Egypt and the EBRD's commitment to investing in the local market, which reached around €1.5 billion (EGP 86 billion) last year. She expressed keenness to expand this cooperation to more development sectors.

 

 

Indicators of the Egyptian Economy

 

During the meeting, H.E. Dr. Rania Al-Mashat reviewed the positive indicators of the Egyptian economy. She stressed that Egypt is following an approach to achieve comprehensive economic development led by the private sector and based on tradable and export-oriented sectors.

 

H.E. Dr. Al-Mashat noted that the current government is making efforts to enhance macroeconomic stability and continues to implement structural reforms that stimulate the private sector, provide a favorable investment climate, and a suitable business environment. She affirmed the government's intention to proceed with the initial public offering (IPO) program to maximize the return on state-owned assets.

H.E. Minister Al-Mashat referred to the government's commitment to the investment spending ceiling, estimated at around one trillion Egyptian pounds for public investments, to make room for local and foreign investments and reduce the state's presence in economic activities, in exchange for increasing private sector investments. This has already been evident in the first and second quarters of the current fiscal year, where private sector investments increased while public investments decreased, accounting for more than 50% of total investments.

 

Regarding development financing, H.E. Dr. Al-Mashat outlined that 2024 was a pivotal year for development financing for the private sector, reaching its highest level in 5 years, amounting to approximately $4.2 billion (EGP 212 billion), exceeding government financing, which amounted to $3.2 billion (EGP 162 billion). She noted that most of the government financing last year was to support the budget and enhance structural reforms.

 

The National Narrative for Economic Development

 

H.E. Dr. Al-Mashat pointed out that the Ministry of Planning, Economic Development and International Cooperation aims to launch the national narrative for economic development, which includes a clear executive plan in coordination with various state sectors, to drive economic growth based on foreign direct investment, industry, and human capital sectors. She noted that various state entities are making integrated efforts to advance the industrial sector, capitalizing on the vast potential of the Egyptian economy.

 

"NWFE" Program

 

The Minister highlighted the partnership with the EBRD and other development partners in the energy pillar of the "NWFE" program. The efforts exerted have resulted in the mobilization of concessional financing for the private sector amounting to $3.9 billion (EGP 197 billion) since the platform's launch, facilitating private sector investments in renewable energy projects. She pointed to the Bank's contribution to strengthening Egypt's electricity grid to accommodate capacities in the renewable energy sector.

 

H.E. Dr. Al-Mashat noted that efforts are ongoing to mobilize investments of around $10 billion (EGP 506 billion) to implement renewable energy capacities of 10 gigawatts by 2028, in order to implement the national integrated and sustainable energy strategy.

 

H.E. Minister Al-Mashat pointed to the Country Strategy for Cooperation with the EBRD 2022-2027, which reflects the Egyptian government's commitment to achieving comprehensive and sustainable development.

 

H.E. Dr. Al-Mashat confirmed the Ministry's keenness to align the Bank's strategy with the Egyptian government's objectives, which are based on three main pillars: supporting the state's efforts to achieve inclusive economic growth, promoting the green economic transition, and enhancing opportunities and increasing growth.