The concessional development funds acquired by the private sector from development partners since the commencement of 2023 totaled approximately $2.1 billion. This is in addition to the funding of $7.3 billion over the last three years, from 2020 to 2022, as outlined by Rania Al-Mashat, the Minister of International Cooperation.
Al-Mashat explained that these funds take the form of investments, contributions, lines of credit, or development financing, accessible to businesses of all scales—large, medium, small, and startups.
She affirmed the Egyptian government's commitment to advancing development initiatives by creating more opportunities for the private sector. In line with this, she referred to the numerous discussions held with the Development Finance Corporation (DFC) aimed at bolstering its investments in Egypt across priority sectors.
Aligned with Egypt's updated national contributions (NDC) announced at COP27 to promote climate investment, the minister underlined the nation's efforts in fostering international cooperation and development financing to encourage private sector involvement in development.
Al-Mashat pointed out several international institutions keen on supporting the private sector, including the International Finance Corporation (IFC), the European Investment Bank (EIB), and the European Bank for Reconstruction and Development (EBRD), alongside bilateral partners. She highlighted that structural reforms undertaken since 2014, particularly in sectors like renewable energy, have heightened international financing institutions' interest in supporting the private sector, leading to successful financing models, notably exemplified by the Benban solar power plant, funded by international financing institutions and attracting local investors.
She emphasized the significance of partnerships between the private sector and international financing institutions to invigorate Egypt's development endeavors, aligning with the country's vision. Al-Mashat provided examples, such as funds from EBRD supporting the private sector's development of the first dry port in 6th of October City, and international financial institution financing for Scatec, a Norwegian company implementing a green hydrogen project in the Suez Canal economic zone, secured through MIGA financing from EBRD and a Climate Investment Funds (CIF) grant.
This information emerged during Al-Mashat's meeting with a delegation from the US Congress Foreign Affairs Committee, which took place within the context of their visit to Egypt. The meeting was attended by John Deroche, the Chargé d'Affaires of the US Ambassador to Cairo, Margaret Sancho, Deputy Director of the USAID Mission in Egypt, Aaron Jordan, Deputy Senior Chief Counsel at United States House Committee on Foreign Affairs, Chris White, and Chief Professional Officer for the U.S. House Foreign Affairs Committee, James Walsh.
During the meeting, Al-Mashat underscored the significance of robust collaboration in development cooperation between Egypt and the United States through USAID. This long-standing partnership has facilitated joint efforts to support sustainable development and enhance ties between the two countries, based on shared interests and opportunities to strengthen relations, particularly in the economic sphere. This collaboration extends to reinforcing partnerships with the private sector, reflecting the state's commitment to boosting development efforts amidst global economic challenges.
Al-Mashat highlighted the range of programs implemented with USAID through annual grants to fulfill diverse objectives, including supporting economic reforms, enhancing business competitiveness, stimulating trade and investment, workforce development, youth skill enhancement, education and vocational training, agriculture, health, and tourism. In March, the Ministry of International Cooperation and USAID signed 7 grant agreements totaling $160 million, with discussions ongoing for upcoming periods to implement priority projects.
Additionally, Al-Mashat underscored climate action's importance and Egypt's endeavors in this domain. She pointed to the country's efforts, including the launch of the National Strategy for Climate Change 2050 and the updated Nationally Determined Contributions (NDC) in mitigation and adaptation, revealed last month. Al-Mashat also mentioned the Egypt-US-Germany joint political declaration during COP27, focused on supporting the energy pillar within the program.
The NWFE program, designed in alignment with national visions, seeks international backing from financing institutions and bilateral development partners. During COP27, the program aims to announce more details and results of these endeavors. Al-Mashat highlighted the governance efforts ensuring the alignment of concessional development funds with SDGs and OECD standards to accurately assess their impact on SDGs and future decision-making.
She discussed updating national strategies with development partners and the preparation of Egypt-UN Sustainable Development Cooperation Framework, and partnership frameworks with World Bank, EBRD, and African Development Bank (AfDB), according to national priorities. Currently, 15% of the development cooperation portfolio consists of development grants aimed at boosting technical support, feasibility studies, capacity building, and skill enhancement.
Al-Mashat emphasized that concessional development funds are also directed at vital projects for the Egyptian citizen, including comprehensive health insurance, social protection programs, food security enhancement, and more.
Among the achievements during COP27, Al-Mashat highlighted the launch of the international ClimaTech Run competition for startups in climate action technology, drawing wide participation.
To the representatives of the US Congress Foreign Affairs Committee, Al-Mashat presented the Ministry's 2022 Annual Report, detailing development cooperation efforts of the previous year. Additionally, she shared the Sharm El-Sheikh Guidebook for Just Financing, created in collaboration with over 100 international entities and development partners to stimulate equitable climate finance and attract climate finance to developing nations.
Ongoing cooperation with USAID involves 11 ongoing projects offering technical support across various sectors and 41 projects and programs in fields including education, economic development, health, and governance. Implemented alongside 14 ministries and agencies, these projects align with the objectives of comprehensive economic development, social justice promotion, economic reform support, and governance enhancement in the pursuit of sustainable development in Egypt.