Al-Mashat: Developing Capital Market in Egypt is Key Driver for Achieving Sustainable Growth, Job Creation

Nada Mustafa

Dr. Rania A. Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, held a meeting with the joint mission of the World Bank and the International Finance Corporation to discuss cooperation within the framework of the Joint Capital Market Program (J-CAP).

The meeting was attended by representatives from the Ministry of Finance, the Financial Regulatory Authority, and the General Authority for Investment and Free Zones.

H.E. Dr. Rania Al-Mashat emphasized the importance of enhancing and expanding Egypt's capital market, considering it a key driver for achieving sustainable growth, creating jobs, and fostering long-term prosperity.

H.E. Minister Al-Mashat pointed out that in recent years, Egypt has embarked on an ambitious journey to modernize and strengthen its financial sector, recognizing the importance of having an efficient and attractive capital market that can attract both local and international investments, diversify financing sources, and stimulate innovation.

Al-Mashat reviewed the initiatives undertaken by the Egyptian government to develop the capital market. H.E. highlighted the launch of the first voluntary carbon trading market in Africa in August 2024, with technical support from the World Bank. This initiative aims to attract local and international investors and promote projects that contribute to reducing carbon emissions in sectors such as agriculture, industry, and others.

Minister Al-Mashat also pointed to Egypt's issuance of the first sovereign green bonds in the Middle East and North Africa in 2020. She confirmed Egypt's commitment to building on its successes and accelerating the transformation of its capital market.

Regarding partnership opportunities with the J-CAP program,

Dr. Rania Al-Mashat stated that there is significant value in exploring a partnership with the Joint Capital Market Program launched by the World Bank and the International Finance Corporation. Their extensive expertise and global experience in capital market development can be a critical factor in boosting Egypt's efforts to achieve the targeted economic growth rate, particularly in the context of today's unstable global economic environment.

The Minister of Planning, Economic Development, and International Cooperation added that cooperation with the J-CAP program can contribute to achieving several strategic objectives. This includes enhancing the efficiency of the local debt market, improving its management mechanisms, expanding the investor base in Egypt's market, increasing financing opportunities, and providing access to small and medium-sized enterprises in Egypt. Additionally, it will support the expansion of Egypt’s carbon market, transforming it into a regional hub, revitalizing the bond market for large and medium-sized companies, exploring innovative financing tools based on blended finance to support sustainable development, encouraging public-private partnerships, and proposing specific policies to facilitate investments related to capital markets.

Minister Al-Mashat reiterated that working together with the J-CAP program will enable Egypt to unlock the full potential of its capital market and contribute to achieving national economic development goals. She clarified that the partnership with the program will play a pivotal role in enhancing the resilience of Egypt's economy, increasing its inclusivity, and ensuring long-term sustainable development.

It is worth noting that the World Bank and the International Finance Corporation launched the Joint Capital Market Program in 2017 to help developing countries realize the benefits of strong local capital markets. The initiative began implementation in 2018, mobilizing resources across the World Bank Group to provide tailored advice and investments to each country in order to create a supportive and enabling environment for healthy capital markets through technical assistance, including market infrastructure modernization, regulatory framework improvements, and capacity building.