Al-Mashat: Approval of CPF Establishes a New Phase of Effective Development Cooperation

Rania A. Al-Mashat, Minister of International Cooperation and Governor of Egypt at the World Bank Group (WBG), said that the approval of the new CPF between the Arab Republic of Egypt and the WBG for 2023-2027 establishes a new phase of effective development cooperation and joint action, in order to support efforts to achieve comprehensive and sustainable growth.

This is based on the national priorities in various sectors and the 2030 development vision, as well as presidential initiatives, explaining that through the extended partnership with the WBG, work will be done over the next five years to stimulate the role of the private sector in development to create more job opportunities, enhance the investment environment, increase investment in human capital, and promote climate action, in order to achieve comprehensive recovery and sustainable growth.

Yesterday, Tuesday, in Washington, the WBG Board of Executive Directors, which consists of 25 executive directors representing member countries, approved the new CPF for the period 2023-2027. The framework has 3 main pillars: increasing and improving job creation, empowering the private sector-led investments and job opportunities; enhancing investment in human capital via inclusive, equitable and improved health and education services as well as effective social protection programs; and improving the resilience of response to shocks by supporting macroeconomic management and climate change adaptation and mitigation measures.

Through the new CPF, which will be implemented in partnership between the WBG, the IFC, MIGA, the concerned national entities, as well as the private sector, $7 billion in financing will be made available over the period of the strategy, at a rate of $1 billion annually from the International Bank for Reconstruction and Development (IBRD). That is in addition to $2 billion for the private sector from the IFC as well as guarantees from MIGA.

In her statement, the Minister stated that the new CPF was prepared through joint work and continuous discussions with all relevant entities from the national authorities as well as the private sector and was based on the studies that were prepared on the Egyptian economy and the private sector, as well as the Country Climate Development Report (CCDR), which was launched during the COP27. The CCDR identifies opportunities, challenges, policies and investment opportunities that can be implemented within five years to increase the efficiency of using and allocating natural resources, reducing the effects of climate change on citizens and business institutions, and enhancing Egypt's competitiveness

Al-Mashat added that the new CPF also includes the dimension of regional integration, especially in light of Egypt's COP27 presidency, through which the country’s role in supporting climate action in the African continent will be stimulated, enhancing resilience and encouraging mitigation and adaptation efforts.

Al-Mashat then stressed the importance of the private sector pillar, promoting job opportunities and creating an investment environment within the new CPF through which the IFC and the MIGA, affiliated with the WBG, will work to stimulate the role of the private sector and provide investments and development financing, technical support and consultations that enhance the competitiveness of the private sector in Egypt, in line with the government's efforts to expand the base of private sector participation in development. H.E. explained that the Ministry is keen on all joint strategies with development partners to include the pillar of private sector participation in order to expand financing and support mechanisms and technical direction for various companies.