Al-Mashat Reviews Egypt's Integrated National Financing Strategy

H.E. Dr. Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, presented the details of Egypt's Integrated National Financing Strategy (E-INFS) during a high-level event held under the patronage of Prime Minister Dr. Mostafa Madbouly. 

The event was also attended by: Dr. Khaled Abdel Ghaffar, Deputy Prime Minister for Human Development and Minister of Health and Population; Mr. Ahmed Kouchouk, Minister of Finance; Dr. Maya Morsy, Minister of Social Solidarity; Engineer Sherif El Sherbini, Minister of Housing, Utilities, and Urban Communities; Mr. Mohamed Abdel Latif, Minister of Education and Technical Education; Ms. Elena Panova, UN Resident Coordinator in Egypt; Mr. Alessandro Fracassetti, UNDP Resident Representative; along with representatives from international financial institutions, ambassadors, and members of Parliament.

The First Strategy of Its Kind

H.E. Dr. Al-Mashat emphasized that the Integrated National Financing Strategy is the first of its kind in Egypt. It follows the global approach of the Integrated National Financing Framework (INFF), providing a cohesive national framework for financing and resource mobilization in line with the SDGs within Egypt's Vision 2030 and the Addis Ababa Action Plan. 

The strategy identifies financing gaps and improves resource allocation to priority sectors. Al-Mashat noted that around 86 countries have launched integrated national financing frameworks, many of which have successfully mobilized new sources of financing to achieve the SDGs.

H.E. highlighted that the strategy is being implemented by the Ministry of Planning, Economic Development, and International Cooperation, in collaboration with the UN Resident Coordinator in Egypt and partner UN agencies: the United Nations Joint Fund for Financing the Sustainable Development Goals (the Joint SDG Fund), the United Nations Development Program (UNDP), the International Labor Organization (ILO), UNICEF, UN Trade and Development (UNCTAD), and UN Women. 

The strategy addresses three key questions: the financing needed to achieve the SDGs, current financial sources and flows, and opportunities to increase and diversify financing.

Mobilizing Financing to Bridge Development Gaps

Al-Mashat added that the strategy focuses on mobilizing sustainable financing to bridge financing gaps and mitigate financial risks. It promotes a transition from traditional financing mechanisms to comprehensive strategies aimed at achieving the SDGs. 

The strategy seeks to align public and private financing with Egypt's strategic priorities, encourage private sector investments, and increase the efficiency of public expenditures. 

It also aims to develop a roadmap for sustainable and innovative financing to mobilize public and private resources at both local and international levels.

In March 2021, the Ministry, in partnership with the UN Resident Coordinator's Office in Cairo, signed the "Financing Strategy for the SDGs in Egypt" project, supported by the Joint SDG Fund. 

The strategy identified six priority sectors, including social protection, education, health, water, sanitation, transportation, and women's empowerment. Climate change was later added as a key sector due to its growing importance.

Components of the Integrated National Strategy for Sustainability and Financing for Development

H.E. outlined the strategy's main components, which include identifying financing gaps for priority sectors as a percentage of GDP until 2030, conducting a comprehensive analysis of public and private financing sources, and establishing a framework for investment policies. 

The strategy also seeks to enhance the investment environment by simplifying regulatory procedures, improving governance, and supporting public-private partnerships.

Roadmap for Sustainable and Innovative Financing

The strategy establishes a roadmap to enhance public and private resource flows by improving revenue collection efficiency, increasing budget transparency, and expanding innovative financing mechanisms. 

A governance approach ensures effective coordination between national entities through a supervisory committee and technical working groups. Follow-up and evaluation mechanisms will track progress toward achieving the SDGs.

Al-Mashat emphasized that the government is committed to implementing reforms, including tax reforms, debt sustainability measures, promoting public-private partnerships in infrastructure projects, attracting foreign direct investment, and expanding innovative instruments like Islamic finance sukuk, sustainable development bonds, and venture capital.

Institutional Integration

H.E. discussed the institutional integration following the merger of the Ministry of Planning, Economic Development, and International Cooperation. 

This integration supports financing for development efforts by enhancing coordination and collaboration. 

The ministry plays a key role in preparing, implementing, and monitoring economic and social development plans to ensure investments align with development goals.

The Ministry also chairs the Financing for Development Working Group, which estimates financing needs across various sectors and directs resources to them. 

The "NWFE" program was highlighted as a country platform combining innovative and blended financing mechanisms to drive climate and development efforts.

The Integrated National Strategy in the Context of the Ministry Merger

Al-Mashat emphasized that the merger of the ministries aligns financing strategies with national development priorities and provides a unified framework linking economic and social development plans with financing efforts. This integration enhances public spending efficiency, ensures sustainable financing, and maximizes the use of international partnerships.

Addis Ababa Action Agenda 2015

Al-Mashat noted that the Addis Ababa Action Plan laid the foundation for national integrated financing frameworks in 2015, establishing a global framework for financing the 2030 Agenda for Sustainable Development.

The plan emphasized the importance of national development strategies supported by integrated financing frameworks to mobilize the resources needed to achieve the SDGs. Many countries are aligning their national priorities with the SDGs, but strategies still require further refinement.

H.E. concluded by highlighting the global significance of integrated national financing frameworks, especially in light of escalating debt challenges in developing countries. 

These frameworks provide a strategic approach for countries to manage financing sources, reduce reliance on external funding, enhance fiscal resilience, and support sustainable debt management policies.