Egypt’s Governor at the World Bank, in her meeting with the President of the World Bank Group at the G20 meetings in Brazil, mentioned that the consolidation of the Ministry of Planning and the Ministry of International Cooperation will strengthen the partnership with the World Bank in overseeing project and program implementation, both in economic sectors and geographic distribution across governorates.
For future cooperation with the World Bank, top priorities include human development, industry localization, and increasing private sector investments.
Discussions also focused on the continuation of the Development Policy Financing (DPF) program to support structural reforms that boost the private sector in collaboration with development partners.
Key areas of cooperation between Egypt and the World Bank include diagnostic reports on priority economic sectors.
The International Finance Corporation (IFC) plays a crucial role in providing innovative financing to empower the private sector in driving development efforts and enhancing macroeconomic stability.
The reform efforts of the World Bank will influence the restructuring of the global financial system and offer 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 marks the first following her new appointment. It 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 significance of the strategic partnership with the World Bank, one of the largest multilateral development banks globally. She lauded the Bank’s role in concessional financing, technical support, and advisory services in accomplishing the country’s developmental goals.
The President of the World Bank Group congratulated the Minister on her new roles and affirmed the Bank’s dedication to enhancing the partnership with Egypt in alignment with the new government’s development priorities across diverse sectors.
H.E. Dr. Al-Mashat noted that the merger of the Ministries of Planning, Economic Development, and International Cooperation will improve collaboration with the World Bank Group by enhancing coordination with different ministries and governmental bodies on projects executed with the Bank, leading to integration and strengthened management of cooperation at various levels. This will maximize the developmental impact of projects and programs both at sectoral and geographic levels.
Priorities for the Future Phase
The Minister discussed the priorities for the upcoming phase of cooperation with the World Bank, aligning with the government’s program priorities such as advancing human capital, localizing industry, and promoting local and foreign investments in productive and export sectors to enhance Egyptian economy competitiveness and support macroeconomic stability.
The meeting reviewed joint strategies 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 foreign direct investment in Egypt and developing the national industry strategy, essential for attracting more foreign direct investment and localizing industry across various sectors.
H.E. Minister Al-Mashat highlighted the alignment of strategic partnership areas with the government’s program priorities and Egypt’s Vision 2030, aiming to boost private sector growth, create job opportunities, invest in human capital through social protection systems, health, and education, while supporting resilience through innovative climate solutions.
*Structural Reforms and Empowering the Private Sector*
H.E. Minister Al-Mashat praised the partnership with the World Bank in implementing the Development Policy Financing (DPF) program, supporting the execution of structural reforms stimulating the private sector.
The World Bank approved the first tranche of the program totaling $700 million in June, in collaboration with other development partners like the European Union. This program focuses on enhancing fiscal resilience, economic competitiveness, business environment improvement, and green transformation support.
The meeting also discussed the next phase of the DPF program, emphasizing the government’s commitment to continuing structural reforms facilitating private sector involvement and collaborating with development partners in implementing structural reforms.
H.E. Minister Al-Mashat stressed the importance of diagnostic and analytical reports as key cooperation areas between Egypt and the World Bank to provide economic insights and 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 offer 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 involvement in the desalination program in Egypt.
H.E. Dr. Al-Mashat affirmed the importance of IFC’s role in providing innovative financing enabling the private sector to play a larger role in development efforts, boosting the competitiveness of the Egyptian economy.
Moreover, the meeting addressed the goals of the G20 Development Ministerial meetings and the group’s efforts to expedite the achievement of sustainable development goals, including the launch of the global alliance against hunger and poverty, in which the World Bank has announced its participation along with several other international institutions.
H.E. Dr. Al-Mashat confirmed that the World Bank’s development efforts will influence 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.