Egypt’s Deputy Prime Minister for Economic Affairs Hussein Issa held talks with a delegation from the World Bank Group to discuss the potential launch of a new mechanism aimed at guaranteeing financing risks for infrastructure projects and boosting private sector participation.
The meeting, held in Cairo, included representatives from the International Bank for Reconstruction and Development and was attended by Egypt’s Minister of Planning and Economic Development Ahmed Rostom. Discussions focused on strengthening private investment in infrastructure and developing innovative financial tools to support long-term development projects.
During the meeting, the World Bank delegation presented a proposal to establish an Infrastructure Finance Guarantee Facility (IFGF). The mechanism is designed to address financing challenges associated with long-term infrastructure projects, particularly the availability of funding in local currency, while reducing reliance on direct sovereign guarantees.
Officials said the proposed facility could help ease pressure on Egypt’s state budget, improve management of financial obligations, and attract private capital to key sectors such as renewable energy and water.
Issa noted that studying the proposal aligns with Egypt’s broader strategy to expand private sector participation in infrastructure investment and financing. He emphasized the government’s focus on developing innovative financing mechanisms capable of stimulating private investment while reducing fiscal burdens on the state and ensuring the sustainability of priority infrastructure projects.
On his part, Rostom said the proposal represents an important opportunity to strengthen Egypt’s infrastructure financing system through advanced institutional tools that can bridge funding gaps and manage credit risks more efficiently.
At the conclusion of the meeting, both sides agreed to begin in-depth technical consultations and develop a roadmap for broader discussions involving government agencies, financial institutions, and private sector developers to ensure the mechanism aligns with the needs of the Egyptian market and the country’s long-term development goals.
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