Tue, 11 Oct 2022 - 05:00 GMT
Tue, 11 Oct 2022 - 05:00 GMT
CAIRO – 10 October 2022: Egypt’s Ministry of International Cooperation reviewed, Monday within the 2022 International Monetary Fund and the World Bank Group annual meetings most Important aspects of the Development Cooperation between Egypt and the World Bank Group.
It was stated that ongoing development cooperation portfolio includes 14 development projects, worth nearly $7 billion, and 23 projects in technical support, consultancy and capacity building.
The partnership with the WBG supports the country’s development in several vital sectors such as food security, social protection, water and sanitation, education, and infrastructure.
The new Country Partnership Framework (CPF) for 2023-2027 promotes inclusive and sustainable growth, as well as building resilience to climate change while increasing private sector participation.
Increasing the base of private sector participation through development cooperation efforts with the Multilateral Investment Guarantee Agency (MIGA) & International Finance Corporation (IFC).
The MIGA provides $480 million to stimulate the role of the private sector, including support in the expansion of the Norwegian company, Scatec in Egypt.
$1.25 billion through cooperation with the IFC is directed to the private sector, and $31 million in technical support and consultancy
The World Bank Group (WBG) is one of Egypt’s most important multilateral development partners, and since 2014, great development within the framework of the country’s national agenda has been witnessed, including efforts to enhance multilateral cooperation.
This week, the Minister of International Cooperation and Governor of Egypt at the WBG, H.E. Dr. Rania A. Al-Mashat is in Washington for the 2022 Annual Meetings of the International Monetary Fund (IMF) & the WBG, held from October 10 to 16, under the theme “Unity in a Time of Crises”.
The Ministry of International Cooperation works to advance economic relations with multilateral and bilateral development partners, to accelerate the national development vision, to stimulate the transition to a green economy, and to implement the 2030 UN Sustainable Development Goals (SDGs), by securing development finance and technical cooperation through international cooperation, while also stimulating private sector engagement.
Moreover, Egypt and the WBG share a development cooperation portfolio of 14 ongoing projects, up until October, worth almost $7billion, as well as 23 projects with technical support and consultancy. This is in addition to joint efforts to enhance private sector participation in development through cooperation with the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA), both part of the WBG.
Details of Projects in Cooperation Portfolio
The cooperation portfolio between Egypt and the WBG include several projects such as the: Strengthening Social Safety Nets Projects worth $900 million, the Sustainable Rural Sanitation Services Program for Results worth $850 million, and the Upper Egypt Local Development project worth $500 million.
Moreover, the portfolio also includes the Supporting Egypt Education Reform Project worth $500 million, Catalyzing Entrepreneurship for Job Creation project worth $200 million, the Transforming Egypt’s Healthcare System Project worth $530 million, the Egypt Inclusive Growth for Sustainable Recovery project worth $360 million, Supporting Egypt’s Universal Health Insurance System with $400 million, the Greater Cairo Air Pollution Management & Climate Change Project with $200 million, the Egypt COVID-19 Emergency Response with $50 million, the Railway Improvement & Safety for Egypt Project worth $440 million, the Cairo Alexandria Trade Logistics Development Project worth $400 million, and the Emergency Food Security & Resilience Support Project worth $500 million.
Development Across Sectors
The ongoing development cooperation portfolio also covers a variety of sectors with water covering 13%, Health, Nutrition & Population with 15%, Finance, Competitiveness & Innovation with 18%, Transportation with 12%, Social Protection & Jobs with 13%, Agriculture & Food with 7%, Education with 7%, Environment, Natural Resources & Blue Economy with 3%, Macroeconomics, Trade & Investment with 5%, and Urban Resilience and Land with 7%.
Role of International Cooperation in Increasing Private Sector Engagement
With regards to the cooperation with the MIGA, the portfolio includes $480 directed to a variety of private sector companies, especially in renewable energy. In 2022, the MIGA issued guarantees to Finance Virtuo, at a value of $98 million in support of the Norwegian company Scatac, to implement renewable energy projects in Egypt.
Moreover, the cooperation portfolio with the IFC amounts to $1.25 billion covering a variety of sectors such as renewable energy, construction, industry, and the financial sector. Additionally, the IFC provides advisory services and technical support to the private sector, worth $31 million.
Latest Information on the Development Cooperation Between Egypt & the WBG
At the present time, the cooperation between Egypt and the WBG is witnessed new developments, especially ahead of COP27, and this includes:
The Country Partnership Framework (CPF) for 2023-2027: The Ministry of International Cooperation, the WBG, and relevant national entities are currently preparing the CPF 2023 - 2027 which will establish a new chapter of joint relations for the next 5 years. The new framework focuses on stimulating efforts to create a favorable environment for private sector participation and job growth, increasing human capital investment, inclusivity, enhancing resilience to climate and macroeconomic shocks, as well as governance, regional integration, and women’s empowerment.
The Country Climate and Development Report (CCDR): The Ministry of International Cooperation, the Ministry of Environment, and relevant entities, are working in partnership with the WBG to prepare the CCDR which looks into the interrelationship between climate and development, and takes into account national efforts in the green transformation. The report encompasses 3 main pillars: water and agriculture, energy and industry, and resilient cities and coastal economies.
Preparations Ahead of COP27
As part of the preparations for the COP27, the Ministry of International Cooperation is working on many projects with multilateral and bilateral development partners, including the WBG.
Recently, the Ministry launched Egypt’s Country Platform for the NWFE program to finance a list of green government projects in water, food and energy, within the National Strategy for Climate Change 2050. This includes the participation of many bilateral and multilateral development partners. Moreover, the Ministry is also in discussions with over 70 partners and institutions on climate finance with regards to the launch of the Sharm El-Sheikh Guidebook for Just Financing, setting equitable financing to stimulate innovative and blended finance.
The IMF & WBG 2022 Annual Meetings are being held at a challenging time as the global economy is witnessing the repercussions of many successive crises including the COVID-19 pandemic, the Russian-Ukrainian War, disruptions in supply chains, and increased food and energy prices worldwide. The 2022 Annual Meetings will look into the overlapping crises facing development efforts, working towards resilience and the ability to mitigate shocks from future challenges.
Last June, a high-level delegation from the WBG’s Board of Executive Directors visited Cairo, and a statement was issued by the bank on the commitment to continue supporting development priorities in Egypt.