Egypt, IFC Discuss Efforts to Stimulate Private Sector Investments

Within the framework of discussions with multilateral and bilateral development partners to stimulate private sector investments, enhance its role in implementing national development plans, and provide more financing mechanisms and tools for the private sector and the financial sector in Egypt through international partnerships, the Minister of International Cooperation H.E. Dr. Rania A. Al-Mashat met with the International Finance Corporation delegation headed by Cheick-Oumar Sylla, IFC’s Regional Director for North Africa; Aliou Maïga, IFC's Regional Director for the Financial Institutions Group (FIG) in Africa, Sandra Bomah, Director of Investments of Financial Institutions, Yasmine El-Hini, IFC’s Country Officer, Deputy to Country Manager, alongside a team from the Ministry of International Cooperation.

During the meeting, Al-Mashat stressed the importance of working collaboratively with development partners to stimulate private sector participation in development and in implementation of the Government of Egypt’s national vision; driving inclusive and sustainable growth, noting the joint efforts with the International Finance Corporation (IFC) to make investments, financing and credit lines available to Egyptian companies and banks in order to increase the private sector participation base in development.

The Minister pointed out the importance of expanding the scope of cooperation between the IFC and private sector companies in Egypt through credit lines to banks to promote the development of small, medium and micro enterprises (SMEs), in addition to the availability of green bonds, to increase investments in various fields, explaining that the Ministry of International Cooperation works to advance partnerships between international financing institutions and the private sector in order to accelerate the implementation of the country's vision aimed at increasing private sector investment and its role in development.

For his part, Aliou Maïga, IFC's Regional Director for the Financial Institutions Group (FIG) in Africa, pointed out the importance of the Egyptian market for the IFC, and the corporation's keenness to consolidate ways of cooperation in order to provide more financing mechanisms for the private sector in Egypt.

Both agreed to make further efforts to familiarize the private sector and Egyptian banks with the financing instruments available from the IFC for the private sector.

In 2021, the IFC financed the first green bonds for the private sector at a value of $ 100 million, from which the Commercial International Bank (CIB) in Egypt benefited.

In a related context, the Minister discussed with IFC officials the expansion of technical support and consultancy efforts to the private sector, in support of the ongoing portfolio of consultancy and technical support of $32.4 million, in the areas of electricity, private sector development, environment, governance and gender, finance and insurance, transport and storage, wholesale and retail trade, textiles and clothing, and others.

The two sides discussed the state's efforts to stimulate the green transition, expansion of green buildings and clean energy transition with the participation of the private sector as a key development partner.

IFC Officials Reception

Moreover, Al-Mashat participated in the reception organized by the IFC for Maïga, on the occasion of his visit to Egypt, in the presence of the previously aforementioned IFC representative, as well as CEOs of private sector companies and heads of Egyptian banks.

In her speech, Al-Mashat stressed the importance of the existing relationship with the IFC in providing financing and investments to Egyptian private sector companies, within the state's vision to expand the private sector participation base, pointing out that the Ministry of International Cooperation works through international partnerships to provide blended financing that stimulates partnership between the government and private sectors and international finance institutions to accelerate the pace of efforts to achieve sustainable development.

H.E. pointed to the importance of the role of the private sector in driving green transformation efforts in Egypt, and the need to strengthen cooperation and mobilize financing mechanisms to support the implementation of the Country Platform for the Nexus for Water, Food and Energy (NWFE) program, which comes under the umbrella of the National Strategy for Climate Change 2050, and includes nine priority projects in the water, food and energy sectors.

It is worth mentioning that the Arab Republic of Egypt works closely with the IFC, the World Bank Group's (WBG) arm for private sector finance. The portfolio of financing and investments in Egypt makes up for about$1.3 billion covering several sectors such as the financial sector, agriculture and forestry, health, education, industry, tourism, retail, construction, infrastructure, oil and gas.