CAIRO – 4 December 2024: Egypt looks forward to cooperating with the African Finance Corporation (AFC) to support climate action efforts, and to strength the path of green economic recovery, the Minister of Finance, Mohamed Maait said during his meeting with the CEO of AFC on the sidelines of COP28.
The Minister expressed Egypt's willingness to enhance the contribution of AFC to providing financing to Egyptian heavy industries, infrastructure, communications, transportation, logistics services, and green transformation projects.
Maait stressed on the importance of debt-for-climate swaps, the initiative of converting part of the debts to confront climate change in boosting green investments.
The initiative contributes effectively to addressing environmental challenges, especially for developing countries that face huge financing burdens, the minister of finance confirmed.
This initiative was suggested by United Nations and have recently been endorsed by the International Monetary Fund (IMF). Such mechanisms allow countries in distress to have part of their debts converted into targeted resources for climate action.
He pointed to Egypt's efforts to find a common framework to bridge the financing gap, during its presidency of the COP 27 climate summit and through the Finance Day activities in Sharm El-Sheikh.
Maait pointed out that the UAE’s establishment of a $30 billion fund for global climate solutions will contribute to bridging the climate financing gap and facilitating affordable access.
Despite Africa's contribution of less than 3 percent of global carbon emissions, Africa disproportionately suffers the consequences of severe climate change and unprecedented environmental degradation, the minister of finance stated.
He added that this imbalance highlights the continent's immense potential to spearhead a green industrial revolution, leveraging its abundant natural resources and human capital, particularly in the field of renewable and green energy.
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