Al-Mashat Discuss with EBRD’s Executive Director Joint Future Strategy

On Monday, Minister of International Cooperation and Egypt’s Governor at the European Bank for Reconstruction and Development (EBRD) Rania Al-Mashat, held a video conference with the European Bank for Reconstruction and Development’s Executive Director of the Board of Governors for Egypt, Australia, Korea, and New Zealand, Philip Lindsay, to address the developments of negotiations that the Ministry of International Cooperation held with the EBRD and relevant national entities on forming the future strategy. This comes within the framework of the Board of Directors’ meeting taking place on November 20.

During the meeting, they covered the ongoing projects that are implemented within the portfolio of cooperation between Egypt and the EBRD, as well as the country’s efforts in advancing green transition. This meeting comes in light of the Ministry of International Cooperation’s constant effort to coordinate between relevant authorities and ministries; supporting Egypt’s development agenda. In that same vein, the Ministry prepares future strategies with the United Nations, the European Bank for Reconstruction and Development, the World Bank and the African Development Bank.

The Minister of International Cooperation stated that Egypt is one of EBRD’s largest countries of operations, as the joint portfolio of cooperation encompasses a number of successful projects that reflect the close ties between Egypt and the bank.

This underlines the Government of Egypt’s efforts to achieve development across all sectors, as well as its commitment to the agreed-upon strategies with International Financial Institutions (IFIs), in a way that advances Egypt’s Vision 2030 and the United Nations Sustainable Development Goals (SDGs).

Minister Al-Mashat further mentioned that the strong partnership between Egypt and the EBRD over the past years have resulted in encouraging the private sector’s engagement, where 75% of the development financing was allocated to the private sector, and 25% to the public sector. Furthermore, reviewed the Government of Egypt's efforts to strengthen the national economy and promote sustainable and inclusive growth, which made Egypt the only country of operations that have achieved positive growth during 2020, due to the homegrown economic reform program launched in 2016 cushioned Egypt from the pandemic’s impact on the health, education and financial sector.

In addition, the Minister referred to the government’s structural and legislative reforms that have enhanced the private sector’s engagement in the development and enabled IFIs to further provide development financing to the private sector.

For instance, the Feed-in Tariff (FiT) program, contributed to pushing forward the private sector to implement more renewable energy projects as well as to open the horizon for more strengthened cooperation with development partners. This framework helped in the implementation of Egypt’s flagship project: Benban Solar Park, in cooperation between the government, the private sector and IFIs, including the European Bank for Reconstruction and Development.

The Minister further noted that the Government of Egypt puts the renewable energy sector at the forefront of its plan towards green transition, paving the way for facing the negative repercussions of climate change. The Government of Egypt is committed to its Integrated Sustainable Energy Strategy (ISES 2035); building a hydrogen energy-based society. In 2020, Egypt also sold $750 million in green bonds in 2020, in what was the region’s first sovereign offering of climate-friendly securities.

She touched on the pivotal role the private sector and IFIs play in supporting Egypt’s efforts to develop the transport sector, as the EBRD supported the construction of Dry Ports, where the first dry port in Egypt was implemented in the 6th’s of October. Moreover, Al-Mashat referred to the negotiations for the preparations of the new Country Strategy with the European Bank for Reconstruction and Development 2022/2027.

Minister Al-Mashat expressed her aspiration to further successful partnerships with the European Bank for Reconstruction and Development to support Egypt’s Vision 2030 and open the horizon for the private sector’s engagement in development; building on the previous Country Strategy with the EBRD, through which a score of successful partnerships was established, some of which won awards in 2020, where Egypt won Silver and Bronze prizes as part of the EBRD’s 2020 Sustainability Awards, respectively for the “Sustainable Energy” category, and the “Gender and Economic Inclusion” category.

For his part, the European Bank for Reconstruction and Development’s Executive Director of the Board of Governors for Egypt, Australia, Korea, and New Zealand, Philip Lindsay, applauded the partnership with Egypt, which plays a key role in enhancing development in the country, and constantly opens the room for enhanced private sector's engagement.

He further added that he looks forward to the new strategy to provide more opportunities for the achievement of an inclusive, sustainable economic recovery.

These negotiations come within the framework of the European Bank for Reconstruction and Development’s Vice President of Banking, Alain Pilloux’s visit to Egypt till October 20, to meet with a number of high-level officials to discuss joint economic cooperation with Egypt and follow up on the negotiations on the future strategy.

In 2020, Egypt was the EBRD’s largest country of operations in the Southern and Eastern Mediterranean (SEMED) region, accounting for more than €1 billion to finance 21 projects, which comprise 47% of the bank’s total investments in the region. Egypt was also the largest country of operations for two consecutive years in 2018 and 2019. The EBRD investments in Egypt reached over EUR 7.8 billion to implement 134 projects, 75% of which were dedicated for the private sector