Al Mashat Witnesses Signing Development Financing Agreement for a $230 Mln from Japan to Support Budget, Empower the Private Sector

Dr. Rania A. Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, and Mr. IWAI Fumio, Ambassador of Japan to Egypt, attended the signing ceremony of the executive agreement for the development financing from Japan, worth $230 million.

This financing aimed at supporting the budget, empowering the private sector, and diversifying the economy. The agreement was signed by Mr. Yasser Sobhi, Deputy Minister of Finance for Financial Policies, and Mr. KATO Ken, the Chief Representative of the JICA office in Egypt, in the presence of representatives from the two ministries and the Japanese side.

This follows the Minister’s visit to Japan in December last year, to celebrate the 70th anniversary of development cooperation between the two countries. During the visit, they signed exchanged letters for the financing, which complements the ministry's efforts to enhance international partnerships and secure funding to support the budget. Thereby, strengthening Egypt's ability to implement the National Structural Reform Program.

In H.E.’s speech, Dr. Rania Al-Mashat welcomed Ambassador IWAI Fumio and representatives from the Japanese International Cooperation Agency (JICA). She affirmed that the agreement reflects the deep historical partnership between Egypt and Japan, which began in 1954 and has, over the past seven decades, become a model for bilateral cooperation based on mutual respect, shared vision, and both countries' commitment to sustainable development.

H.E. Dr. Al-Mashat explained that this financing is part of a broader framework of integration with other funding sources from the European Union, the World Bank, and other development partners, to support the implementation of the National Structural Reform Program, which aims to enhance macroeconomic stability, diversify Egypt's production structure by focusing on the real economy sectors such as industry, agriculture, and information and communication technology, increase competitiveness, improve the business environment, and support the transition to a green economy. It also aims to raise labor market efficiency and flexibility, and develop the technical education and vocational training systems. The Minister noted that Egypt implemented 86 measures last year as part of ongoing structural reforms to increase the economy’s resilience to future shocks.

H.E. Minister Al-Mashat emphasized that the Egypt-Japan partnership has seen remarkable development in recent years, with cooperation expanding across various sectors, especially in human development, infrastructure development, and other priority sectors.

H.E. Dr. Al-Mashat highlighted her visit to Tokyo last December, where she held multiple meetings with Japanese government and private sector officials to explore future cooperation opportunities. This also included the signing of three memoranda of understanding in areas like private sector development, cultural cooperation, and expanding agricultural mechanization technologies in Egypt.

H.E. Minister Al-Mashat expressed her appreciation to Japan, both the government and the people, for their continuous support of Egypt at various stages, and thanked all those involved in ensuring the success of this agreement, from both the Egyptian and Japanese sides, for their significant efforts in strengthening this outstanding partnership. She looks forward to further cooperation, particularly in AI technologies, industrial development, and human development.

Mr. Yasser Sobhi, the Deputy Minister of Finance, confirmed the importance of this agreement, noting that collective efforts played a key role in reaching an agreement that enhances their shared vision for achieving the green transformation. He stressed that this cooperation is essential for creating a more sustainable future.

Mr. IWAI Fumio, the Ambassador of Japan to Egypt, also affirmed his country's appreciation for the shared relationship with Egypt and its commitment to enhancing this partnership in diverse areas, with a focus on development cooperation. He noted that Japan is dedicated to strengthening its ties with Egypt and will remain steadfast in continuing its development cooperation with the country.

Since the tenure of H.E. President Abdel Fattah El-Sisi, Egypt-Japan relations have witnessed significant growth, being elevated to the level of strategic partnership. In this regard, the Ministry of Planning, Economic Development, and International Cooperation is working to strengthen economic relations with Japan to reflect the aspirations of both nations' leaders.

It is worth noting that Egypt's development cooperation portfolio with Japan since 1954 amounts to approximately $7.2 billion in development financing across various sectors, in addition to $2.4 billion in developmental grants.