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Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

Al Mashat Participates in Spring Meetings of the IMF, WB in Washington


Sat 20 Apr 2024 | 10:36 PM
Rana Atef

Dr. Rania Al-Mashat, Minister of International Cooperation and Governor of Egypt at the World Bank Group, noted that the Arab Republic of Egypt is committed to supporting the efforts of multilateral international financing institutions to increase their resources to play their role in supporting developing and emerging countries. 

This is in light of its belief in the importance of multilateral development work to confront successive global challenges and the intertwined crises that not only affect the achievement of sustainable development goals, but also threaten the gains achieved over the past decades, and their impact on developing countries and emerging economies is increasing.

This came during her participation in the spring meetings of the International Monetary Fund and the World Bank held in Washington, where the Minister of International Cooperation participated in many high-level events to discuss global economic developments, most notably the G24 , and the meeting of the African Consultative Group with the World Bank Group President Ajay Banga.

Al-Mashat indicated that the Council of Ministers, headed by Dr. Mostafa Madbouly, had approved the Arab Republic of Egypt’s subscription to the IFC capital increase, in accordance with IFC Board of Governors Resolution No. 272 of 2018, with the aim of maintaining the amount of Egypt’s shares of shares; thus ensuring its voting power within the institution, knowing that the institution is increasing its financial resources in an effort to increase the provision of funds directed to private sector investments.

The Council of Ministers also approved the Arab Republic of Egypt’s subscription to the nineteenth increase of the resources of the International Development Authority (IDA), one of the institutions of the World Bank Group, in accordance with Resolution No. (244) of the Board of Governors of the IDA. The Council of Ministers also approved the Arab Republic of Egypt’s subscription in the twentieth increase of the capital shares of the IDA, in accordance with Resolution No. (248) of the Board of Governors of the IDA, considering that Egypt is one of the countries that has the right to contribute and subscribe to the increase in the capital of the Authority, noting that the Authority is increasing its resources on a regular and periodic basis, and the constitutional procedures regarding these approvals are scheduled to be completed.

International Finance Corporation (IFC)

With regard to increasing the capital of the International Finance Corporation (IFC), the arm of the World Bank to finance the private sector, the Minister of International Cooperation stressed the importance of the role that the institution plays in providing concessional development financing and private sector investments in developing countries and emerging economies, and the importance of the steps taken to increase the institution’s capital. This enhances its ability to provide more financing.

The Minister pointed to the close relationship between Egypt and the IFC to support the development of the private sector in Egypt, as the relationship between Egypt and the IFC has developed significantly over the past years based on the great efforts and huge development projects that are being implemented under the leadership of H.E. President. Abdel Fattah El-Sisi in various sectors, which contributed to increasing the IFC’s role in mobilizing and providing investments and technical support services to the government and private sectors. The Minister expressed her aspiration for integration between the various World Bank platforms and mobilizing more financing for the private sector to advance its role in achieving development.

Based on the directives of the President of the Republic, in June 2023, the Egyptian government signed an agreement with the International Finance Corporation, under which the institution will provide advisory services and technical support for the government proposals program, in light of Egypt’s commitment to this program as one of the tools for empowering the private sector and increasing its contribution to the Egyptian economy.

International Development Authority (IDA)

Moreover, the Minister stressed that confronting the economic challenges facing developing countries requires the availability of much greater resources than the available resources, noting that Egypt’s contribution to increasing the capital of the IDA enhances its ability to face challenges and provide soft development financing to the countries with the lowest and highest incomes. H.E. stated that this increase would enhance the IDA’s role in combating poverty and achieving economic development.