2024/07/01

El-Mashat highlights international financing's role in public-private partnerships

Dr. Rania El-Mashat, Minister of International Cooperation, emphasized that Egypt's cooperation with development partners is guided by a clear national strategy and state-defined priorities. This approach, within the framework of "state ownership," ensures projects align with national goals. Egypt has already established strong partnerships with various multilateral, bilateral, and international development institutions.

This statement came during her participation in a high-level panel discussion titled "Financing the Future: Financial Instruments to Encourage Investment in Egypt" at the Egyptian-European Investment Conference. Other participants included Mr. Jurgen Rigterink, First Deputy President of the European Bank for Reconstruction and Development; Mr. Gert Jan Koopman, Director General for Neighborhood Negotiations and Enlargement at the European Commission; Ms. Gelsomina Vigliotti, Vice President of the European Investment Bank; Engineer Khaled Abu Bakr, Chairman of Arab Energy Company; and Mr. Amir Mashreki, Managing Director of Prosperity Fund.

El-Mashat underscored the importance of concessional financing. This financial tool helps reduce investment risks, attract foreign investment, and strengthen public-private partnerships. International partnerships are key to achieving these goals, as they solidify private sector engagement and facilitate the implementation of strategic national projects with relevant stakeholders.

The Minister highlighted the recently signed political declaration between Egypt and the European Union (signed in March) as a significant step towards a stronger future partnership. Both parties share a focus on numerous strategic sectors, including green hydrogen, renewable energy, food security, water security, and digital transformation. The European Union and its financing institutions are also key partners in executing Egypt's national platform for green projects, "Nuwafy".

Minister El-Mashat emphasized the importance of these partnerships. They provide concessional financing to Egypt's private sector, supporting development goals and climate action aligned with the National Climate Change Strategy 2050. The government prioritizes a collaborative approach, ensuring all relevant parties work together to finance and implement development projects.

Structural reforms are critical for fostering a welcoming investment climate, El-Mashat highlighted. This is reflected in Egypt's partnerships with the European Union (through the MFA and DPF programs) and international institutions like the World Bank and African Development Bank. These collaborations emphasize clear structural reforms to encourage private sector participation in development and drive these reforms forward. The programs focus on three key areas: strengthening macroeconomic stability, enhancing competitiveness and the business environment, and promoting the green transition.

Highlighting the importance of strong partnerships, El-Mashat emphasized how collaboration with development partners has been instrumental. This cooperation has led to a unified approach in tackling Egypt's development challenges. Together, they've developed innovative solutions that drive progress, stimulate private sector investment, and support crucial structural reforms.

Structural reforms implemented since 2014, like the electricity feed-in tariff, have demonstrably attracted significant investment to the renewable energy sector. These ongoing efforts, further bolstered by the National Green Hydrogen Strategy (supported by the EU and EBRD), are paving the way for a major expansion in green hydrogen production.

The Minister of International Cooperation also pointed to the diverse financing mechanisms offered by development partners. These range from credit lines for small and medium-sized enterprises (SMEs) and startups to concessional financing, investment contributions, technical assistance, and investment guarantees.