Dr. Rania Al-Mashat reviews development cooperation efforts with its multilateral and bilateral partners in support of the state’s development plans, in line with the transition towards a green economy, alongside presenting the strategic relations between Egypt and France.
Egyptian-French relations are reflected across all areas of development and include enhancing and encouraging partnerships between the private sector of both countries. In 2021, the development financing signed with France amounted to €1.7 billion.
The Minister of International Cooperation, H.E. Dr. Rania A. Al-Mashat, reviewed the development cooperation efforts with multilateral and bilateral development partners in support of the country’s development plans across fields and in line with the transition towards a green economy. Al-Mashat also addressed the country-led multi-stakeholder engagement framework and development financing secured in 2021; explained in more detail in the Ministry’s 2021 Annual Report "Engaging for Impact Towards Our Common Future,” while also spotlighting the Egyptian-French strategic relations and agreements signed in the past year.
This discussion took place during a meeting organized by the French Chamber of Commerce, alongside the presence of the French Ambassador in Cairo, Mr. Marc Baréty, and members from the chamber, in celebration of its 30th anniversary since its establishment strengthening Egyptian-French relations.
Al-Mashat explained that the country-led multi-stakeholder engagement framework consists of 3 principles, including hosting multi-stakeholder platforms to coordinate and consolidate relations with multilateral and bilateral development partners. This played a key role during the COVID-19 pandemic, where multi-stakeholder platforms supported strengthening partnerships between Egypt and its partners in 2020 and 2021, as various sectors were addressed, such as transportation, energy, small and medium enterprises, health, the private sector, digitalization, and investment in human capital. The results of these multi-stakeholder platforms have been reflected in development cooperation agreements with development partners and relevant national entities.
The Minister stated that the objectives of the country-led multi-stakeholder engagement framework are to maximize socioeconomic returns from Official Development Assistance (ODA), to ensure alignment of development interventions with national objectives as well as with the SDGs, and to enhance the management of development cooperation for better implementation of development projects within Egypt.
Regarding the second principle of the country-led multi-stakeholder engagement framework, Al-Mashat shared the Ministry’s efforts in mapping the ODA to the SDGs, explaining how each project contributes to the implementation of the global goals and national objectives by 2030. She also added that an interactive map was published on the Ministry’s website that includes the current ongoing development portfolio of development financing, distributed across sectors, SDGs, and governorates.
The results of the ODA-SDG Mapping in 2021 showed that the ongoing portfolio includes 372 projects amounting to $26.5 billion, supporting Egypt’s efforts in accelerating development. The highest SDG in receiving ODA financing was SDG 9: Industry, Innovation, and Infrastructure, amounting to $5.9 billion, making up for 22.3% of the portfolio; SDG 6: Clean Water and Sanitation, amounting to $5.3 billion, making up for 20.3% of the portfolio; SDG 7: Affordable and Clean Energy, amounting to $4.6 billion, making up for 17.5% of the portfolio.
Al-Mashat also explained that the third principle of the country-led multi-stakeholder engagement framework is to promote Egypt’s development stories in international forums and by preparing promotional content of projects done in cooperation with developing partners.
The Ministry of International Cooperation’s 2021 Annual Report "Engaging for Impact Towards our Common Future" detailed that the total development financing in 2021 amounted to $10.2 billion, including $8.7 billion directed to public sector development and $1.57 billion directed to private sector development, all dedicated to supporting Egypt’s development vision and the UN SDGs. Al-Mashat also noted that the cooperative efforts with development partners during 2020 and 2021 amounted to $20 billion in development financing.
Strategic Economic Cooperation: Egypt & France
The Minister also addressed the long history of relations between Egypt and France, which is reflected across many areas of development cooperation. The total economic cooperation portfolio since 1974 amounts to €7.5 billion through 42 protocols that support development. In December 2020, H.E. President Abdel Fattah El-Sisi visited France, during which he met with French President Emmanuel Macron, where a number of development agreements were signed.
During the French Minister of Economy and Finance, Mr. Bruno Le Maire’s, visit in June 2021, and Rémy Rioux, Chief Executive Officer of the Agence Française de Développement (AFD), alongside their accompanying delegation, new development financing agreements were signed in light of the 2021-2025 strategy, amounting to €1.76 billion, including €776 million from the French Treasury and €990 million from the AFD. This development financing is secured for development projects for transport, agriculture, water and sanitation, electricity, and energy sectors.
Al-Mashat elaborated that Egyptian-French cooperation paves the way for more partnerships between the private sectors of both countries. The total amount of French investment in Egypt amounts to $5.5 billion in various fields, including infrastructure, industry, renewable energy, telecommunications, information technology, banking, and insurance.
Driving Resilience Through Investing in Sustainable Infrastructure
The Minister referred to the country’s efforts in developing sustainable infrastructure, in addition to the transition towards a green economy. The Ministry’s current portfolio includes 30 projects that support the third most funded goal, SDG 7: Clean and Affordable Energy, amounting to $4.6 billion, making up 17.5% of the total ODA.
With regards to the transportation sector, Al-Mashat referred to the legislative reforms implemented by the state to strengthen public-private partnerships in this area. In 2020 and 2021, the Ministry secured $4.7 billion in development financing in support of the transportation sector with development partners that included the World Bank, the African Development Bank (AfDB), the European Investment Bank (EIB), AFD, the European Bank for Reconstruction and Development (EBRD), China, and the Kuwait Fund for Arab Economic Development (KFAED).
Food Security & Sustainable Value Chains
The Minister of International Cooperation referred to the country’s efforts to enhance food security and sustainable value chains to improve the agricultural sector. Al-Mashat noted that the government worked with the Food and Agriculture Organization (FAO) and the EBRD to increase the efficiency of agricultural value chains and to enhance smart investments in the agricultural sector.
The Ministry’s ongoing portfolio by the end of 2021 included $553 million addressing rural and agricultural development, which features projects that encompass the reclamation of 22 thousand feddans, promoting efficient irrigation systems, and new renewable energy technologies. Al-Mashat explained that the Ministry has worked with many development partners, including the EBRD, the World Food Programme (WFP), the International Fund for Agricultural Development (IFAD), France, and USAID, to strengthen Egypt’s agribusiness sector through helping local farmers adopt environmentally friendly agricultural practices.
Efficient Water Management
Al-Mashat expressed that, in light of the Government of Egypt’s commitment to reducing water loss and to increasing investment in water desalination projects, the Ministry is working to strengthen partnerships between the public and private sectors through international partnership and development financing. In 2021, the Ministry secured $169 million for wastewater management and sanitation. Among the projects implemented in support with development partners is the Water Desalination Plant for Eastern Port Said, costing $130 million to meet the demand for various purposes such as drinking, agricultural, and industrial activities. The Government of Egypt is working on plans to expand the capacity of the plant to reach 150,000 cubic meters per day to serve approximately a million citizens.
The Minister also referred to the Bahr Al-Baqar Drainage System, inaugurated by H.E. President Abdel Fattah El-Sisi, which aims to treat 5.6 million cubic feet of water per day. The water project reclaims over 460,000 feddans and provides over 100,000 job opportunities. In June 2020, $249 million in development financing was signed with the Arab Fund for Economic and Social Development (AFESD), in addition to development financing from over development partners, where Al-Mashat explained that the project strengthened partnerships with the private sector in the water management sector and opened the door to more opportunities with the public sector.
Innovative Climate Financing
During COP 26, the Ministry of International Cooperation organized a high-level panel in cooperation with the Ministry of Environment on the development of an international framework for innovative climate financing to accelerate action towards climate change and close the financing gap by strengthening the role of the private sector and by building on successful partnerships with international development institutions and banks.
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