Egypt’s Governor at the World Bank, during her meeting with the President of the World Bank Group at the G20 meetings in Brazil, stated that the merging of the Ministry of Planning and the Ministry of International Cooperation will enhance the partnership with the World Bank in monitoring the implementation of projects and programs, both in terms of economic sectors and geographical distribution across governorates.
Human development, industry localization, and increasing private sector investments are top priorities for future partnership with the World Bank.
Discussions regarding the continuation of the Development Policy Financing (DPF) program to support structural reforms that stimulate the private sector, in collaboration with development partners.
Diagnostic reports on priority economic sectors are among the key areas of cooperation between Egypt and the World Bank.
The International Finance Corporation (IFC) plays a pivotal role in providing innovative financing that enables the private sector to drive development efforts and enhance macroeconomic stability.
World Bank’s reform efforts will impact global financial system restructuring and provide innovative and sustainable financing mechanisms for developing and emerging countries.
H.E. Dr. Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, and Egypt’s Governor at the World Bank Group, met with Mr. Ajay Banga, President of the World Bank, during the G20 Development Ministerial Meeting held in Rio de Janeiro, Brazil.
This meeting is the first following her new appointment. The meeting involved discussions on various aspects of the partnership between the Arab Republic of Egypt and the World Bank Group.
H.E. Dr. Rania Al-Mashat emphasized the importance of the strategic partnership with the World Bank, which is one of the largest multilateral development banks globally. She praised the Bank’s role through concessional financing, technical support, and advisory services in achieving the country’s developmental goals.
The President of the World Bank Group congratulated the Minister on her new roles and affirmed the Bank’s commitment to enhancing partnership with Egypt in alignment with the new government’s priorities for development efforts across various sectors.
H.E. Dr. Al-Mashat noted that the merger of the Ministries of Planning, Economic Development, and International Cooperation will enhance collaboration with the World Bank Group by improving coordination with different ministries and governmental bodies on programs and projects executed with the Bank, thereby achieving integration and strengthening the management of cooperation across various levels. This will also maximize the developmental impact of projects and programs at both sectoral and geographic levels.
Priorities for the Coming Phase
The Minister discussed the priorities for the upcoming phase of cooperation with the World Bank, which align with the government’s program priorities, including advancing human capital, localizing industry, and encouraging local and foreign investments by focusing on productive and export sectors to enhance the competitiveness of the Egyptian economy and support macroeconomic stability.
The meeting reviewed the joint strategies being implemented between the government and the World Bank in the areas of human development and industry localization, under the 2023-2027 partnership framework. Current activities include assessing the state of foreign direct investment in Egypt and developing the national industry strategy. These studies are crucial for advancing government priorities to attract more foreign direct investment and localize industry across various sectors.
H.E. Minister Al-Mashat highlighted the alignment of the strategic partnership areas with the government’s program priorities and Egypt’s Vision 2030, which aims to enhance private sector growth, create job opportunities, and invest in human capital through social protection systems, health, and education, while supporting resilience through innovative solutions in climate action.
*Structural Reforms and Empowering the Private Sector*
H.E. Minister Al-Mashat commended the partnership with the World Bank in implementing the Development Policy Financing (DPF) program, which supports the government’s efforts in executing structural reforms that stimulate the private sector.
The World Bank approved the first tranche of the program amounting to $700 million in June, in collaboration with other development partners, including the European Union. This program focuses on building fiscal resilience, enhancing economic competitiveness, improving the business environment, and supporting green transformation.
The meeting also discussed the next phase of the DPF program, emphasizing the government’s commitment to continuing structural reforms that facilitate private sector involvement and integrating with development partners in executing the matrix of structural reforms.
H.E. Minister Al-Mashat noted the importance of diagnostic and analytical reports as key areas of cooperation between Egypt and the World Bank to provide clear economic insights and current situation analysis. This includes the Country Climate and Development Report (CCDR), the Egypt Systematic Country Diagnostic (SCD), the 2020 Private Sector Diagnostic Report for Egypt, and the 2022 Public Expenditure Review for Human Development Sectors in Egypt. The World Bank also launched a demographic report in collaboration with the Egyptian government in 2022.
International Finance Corporation (IFC)
The meeting also discussed cooperation mechanisms between the government and the International Finance Corporation (IFC) to provide concessional financing and technical support exceeding $9 billion across various developmental sectors, making Egypt one of the largest operations countries for IFC.
The Minister highlighted IFC’s active role in financing private sector projects in energy under the “NUCA” program, as well as its partnership with the Sovereign Fund and the European Bank for Reconstruction and Development to enhance private sector participation in the desalination program in Egypt.
H.E. Dr. Al-Mashat affirmed the importance of IFC’s role in providing innovative financing that enables the private sector to play a larger role in development efforts, enhancing the competitiveness of the Egyptian economy.
Furthermore, the meeting addressed the goals of the G20 Development Ministerial meetings and the group’s efforts to accelerate the achievement of sustainable development goals, including the launch of the global alliance against hunger and poverty, which the World Bank has announced its participation in, along with several other international institutions.
H.E. Dr. Al-Mashat confirmed that the World Bank’s development efforts would impact the reform of the global financial structure and provide innovative and sustainable financing mechanisms for developing and emerging countries.
In March, the World Bank Group announced its intention to provide $6 billion in financing over the next three years, with $3 billion allocated to support the government’s economic reform program and $3 billion to empower the private sector.
Distributed by APO Group on behalf of Ministry of Planning and Economic Development – Egypt.