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Editor in Chief Mohamed Wadie

Al-Mashat witnesses Agreement Signing between Banque du Caire, IFC worth $100 Mln.

Sun 12 May 2024 | 03:29 PM
Rana Atef

As a reinforcement of the long-term partnership between the Arab Republic of Egypt and the International Finance Corporation (IFC), a member of the World Bank Group, Dr. Rania Al-Mashat, Minister of International Cooperation and Egypt's Governor at the World Bank, witnessed a financing agreement between the International Finance Corporation and Banque du Caire worth $100 million, in addition to a consultancy agreement with the General Authority for Comprehensive Health Insurance. 

This took place during the "IFC Day in Egypt" event, which began today with the presence of Dr. Mostafa Madbouly, the Prime Minister, and the attendance of the Ministers of Planning, Finance, Communications, and Public Business Sector, as well as a group of bank presidents and private sector companies.

The consultancy agreement for the Comprehensive Health Insurance System was signed by Minister of Finance, Dr. Mohamed Maait, and Chairman of the General Authority for Comprehensive Health Insurance, while the financing agreement for Banque du Caire was signed by Mr. Tarek Fayed, the bank's Chairman. The agreements were signed on behalf of the International Finance Corporation by Mr. Sérgio Pimenta is IFC’s Regional Vice President for Africa.

Banque du Caire Financing Agreement

The Minister of International Cooperation witnessed an agreement between Banque du Caire and the International Finance Corporation, worth $100 million, including $50 million to support the development efforts of small, medium, and micro-enterprises owned by the private sector, with a focus on financing projects owned by women entrepreneurs, in addition to $50 million to finance trade under the International Finance Corporation's Global Trade Finance Program.

The Minister of International Cooperation emphasized that the agreement signed today between the International Finance Corporation and Banque du Caire is not the first of its kind, as the IFC had previously financed the first green bonds for the private sector in Egypt by providing $100 million from the International Finance Corporation, enhancing green transformation efforts and reducing emissions.

Minister Mashat added that the Ministry of International Cooperation is keen, in implementation of the presidential directives to support and empower the private sector, to strengthen relations with multilateral and bilateral development partners to explore more available financing tools for various private sector companies, providing more direct and indirect financing tools for the private sector in Egypt.

It is worth noting that during the period 2020-2023, the Egyptian private sector obtained concessional development financing, in the form of direct financing, investment contributions, technical support, and credit lines, worth $10.3 billion.

Consulting Services Agreement

Regarding the Consulting Services Agreement, the Minister of International Cooperation affirmed that signing the Consulting Services Agreement for the Comprehensive Health Insurance System enhances the measures taken with development partners to support the system in Egypt, strengthening the state's efforts to provide comprehensive healthcare services and insurance coverage for all citizens through contracting with a network of private healthcare providers.

Dr. Al-Mashat explained that efforts with development partners have succeeded in providing concessional development financing amounting to $900 million, including $400 million from the World Bank, $181.6 million from the French Development Agency, and $326.7 million from the Japanese side, within the framework of the constructive relations linking Egypt with multilateral and bilateral development partners.

And according to the agreement, the International Finance Corporation (IFC), with its accumulated experience in dealing with the private sector in over 100 countries worldwide, works on analyzing contracting systems with the private sector, conducting consultations with stakeholders, providing technical support and consultations for contracting with private healthcare providers, and providing technical support to the General Authority for Comprehensive Health Insurance, among other provisions that achieve the project's desired objectives.

The Minister of International Cooperation expressed gratitude to the IFC for its commitment to supporting the state and private sector efforts in Egypt through constructive and fruitful partnerships to support development efforts in various fields. The Minister noted that this agreement builds on a portfolio of consultations and technical support for the institution in Egypt worth $34 million in the areas of manufacturing, agriculture, public-private partnerships, green buildings, gender equality, and the financial sector.