Egypt strengthens partnership with World Bank for development

Egypt’s Governor at the World Bank stated during her meeting with the President of the World Bank Group at the G20 meetings in Brazil that the merger of the Ministry of Planning and the Ministry of International Cooperation will strengthen cooperation with the World Bank in overseeing the implementation of projects and programs, both in terms of economic sectors and geographical distribution across governorates.

Human development, localization of industry and increasing private sector investment are top priorities for future cooperation with the World Bank.

Discussions on the continuation of the Development Policy Financing (DPF) programme 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 critical role in providing innovative financing that enables the private sector to stimulate development efforts and enhance macroeconomic stability.

The World Bank’s reform efforts will have an impact on the restructuring of the global financial system and will provide innovative and sustainable financing mechanisms for developing and emerging countries.

HE Dr. Rania Al-Mashat, Minister of Planning, Economic Development and International Cooperation and Governor of Egypt at the World Bank Group, met with Mr. Ajay Banga, President of the World Bank, during the G20 Development Ministerial Meeting in Rio de Janeiro, Brazil.

This meeting is the first after her new appointment. The meeting included discussions on various aspects of the partnership between the Arab Republic of Egypt and the World Bank Group.

HE Dr. Rania Al-Mashat stressed the importance of the strategic partnership with the World Bank, one of the largest multilateral development banks in the world. She praised the role of the bank through concessional financing, technical support and advisory services in achieving the country’s development goals.

The President of the World Bank Group congratulated the Minister on her new role and reaffirmed the World Bank’s commitment to strengthening the partnership with Egypt in line with the new government’s priorities for development efforts across sectors.

HE Dr. Al-Mashat noted that the merger of the Ministries of Planning, Economic Development and International Cooperation will enhance cooperation with the World Bank Group by improving coordination with different ministries and government agencies on programs and projects implemented with the Bank, thereby achieving integration and strengthening the management of cooperation at different levels. This will also maximize the development impact of projects and programs at both sectoral and geographical levels.

The minister discussed the priorities for the next phase of cooperation with the World Bank, which are in line with the priorities of the government’s program, including promoting human capital, localizing industry, and encouraging local and foreign investment by focusing on productive and export sectors to improve the competitiveness of the Egyptian economy and support macroeconomic stability.

The meeting discussed the joint strategies that the government and the World Bank are implementing in the areas of human development and localization of industry, under the 2023-2027 Partnership Framework. Current activities include assessing the state of foreign direct investment in Egypt and developing the national industrial strategy. These studies are crucial for advancing government priorities to attract more foreign direct investment and localize industry in various sectors.

Minister Al-Mashat emphasized the alignment of the strategic partnership areas with the government’s program priorities and Egypt’s Vision 2030, which aims to stimulate private sector growth, create jobs and invest in human capital through social security systems, health care and education, while supporting resilience through innovative climate action solutions.

HE Minister Al-Mashat praised the collaboration with the World Bank in implementing the Development Policy Financing (DPF) program, which supports the government’s efforts to implement structural reforms that stimulate the private sector.

The World Bank approved the first tranche of the program in June, worth $700 million, in collaboration with other development partners, including the European Union. This program focuses on building fiscal resilience, strengthening economic competitiveness, improving the business climate and supporting green transformation.

The meeting also discussed the next phase of the DPF programme, with emphasis on the government’s commitment to pursue structural reforms that promote private sector involvement and to integrate with development partners in implementing the matrix of structural reforms.

Foreign Minister Al-Mashat noted that diagnostic and analytical reports are important as key areas of cooperation between Egypt and the World Bank to provide clear economic insights and analysis of the current situation. These include 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 cooperation with the Egyptian government in 2022.

The meeting also discussed cooperation mechanisms between the government and the International Finance Corporation (IFC) to provide concessional financing and technical assistance worth more than US$9 billion in various development sectors, making Egypt one of the countries where the IFC carries out its largest activities.

The Minister highlighted IFC’s active role in financing private sector energy projects under the “NUCA” programme, as well as its partnership with the Sovereign Fund and the European Bank for Reconstruction and Development to increase private sector participation in Egypt’s desalination programme.

His Excellency Dr. Al-Mashat stressed the importance of IFC’s role in providing innovative financing, enabling the private sector to play a greater role in development efforts and increasing the competitiveness of the Egyptian economy.

The meeting also discussed the objectives of the G20 Development Ministers’ 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, in which the World Bank has announced its participation, along with several other international institutions.

His Excellency Dr. Al-Mashat affirmed that the World Bank’s development efforts will have an impact on the reform of the global financial architecture and provide innovative and sustainable financing mechanisms for developing and emerging countries.

In March, the World Bank Group announced plans to provide $6 billion in financing over the next three years, including $3 billion for the government’s economic reform program and $3 billion to strengthen the private sector.