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Madbouly participates in inaugural New Development Bank Forum in New Administrative Capital


Madbouly participates in inaugural New Development Bank Forum in New Administrative Capital

Prime Minister Dr. Mustafa Madbouly participated, Tuesday, in the opening session of the first international conference of the New Development Bank in Egypt, held under the patronage of President Abdel Fattah El Sisi for two days in the New Administrative Capital. It carries the slogan: "Exploring New Horizons".


 

The event welcomed a high-level delegation from the bank, led by Dilma Rousseff, President of the New Development Bank. Ministers, ambassadors, parliamentarians, presidents, and representatives from international and regional organizations, development partners, economists, the business community, private sector, and international and regional research centers all attended.

At the beginning of the opening session, Dr. Madbouly conveyed to the attendees President Sisi's greetings. He wishes that that important gathering be fruitful and constructive in serving all member states of the BRICS and the New Development Bank.

The Prime Minister hailed the New Development Bank's decision to select the Arab Republic of Egypt as the first member state to host this inaugural high-level meeting. The gathering will review the bank's diverse range of development activities, including providing accessible financing options, facilitating local currency transactions between member states, and introducing mechanisms to support the private sector.  These mechanisms encompass equity participation, easy financing solutions, and technical assistance for small and medium-sized enterprises.

  

Dr. Mostafa Madbouly considered that holding this forum presents a valuable opportunity to highlight Egypt's key development initiatives. We can showcase progress in community development, poverty reduction, infrastructure construction, and government support for the private sector. I look forward to a productive dialogue on the crucial role of South-South economic partnerships, particularly the "BRICS+" group, in achieving national development goals. Let's explore strategies that benefit all parties and maximize the impact of investments in sustainable development.

The Prime Minister affirmed that this forum comes at a very critical stage. Dangerous regional and global developments threaten the economies of major powers and developing nations. This underscores the critical role of the New Development Bank.  In light of the decline in ways to obtain easy financing, credit ratings falling,  as a result of the increase in risks, and the failure of the current international system with its old mechanisms to face these challenges, the NDB must support member states' development plans.

Madbouly acknowledged the international challenges and the need for reform within the global financial system. He expressed confidence that, through collaboration between member states and the New Development Bank, these crises can be overcome and a more equitable international system achieved.. He expressed his hope for the bank's future plans to promote local currency transactions, utilize innovative financial mechanisms, and provide technical support to both public and private sectors. These efforts will contribute to reforming the global financial structure and creating a more favourable environment for developing economies.

The Prime Minister highlighted Egypt's proactive response to the global crisis. Through a series of deep and decisive reforms, Egypt is reducing inflation, lowering the debt-to-GDP ratio, and enhancing economic flexibility. This includes diversifying our productive sectors, boosting exports, and rationalising imports. Additionally, we're empowering the private sector through the state ownership policy and competition law. Social justice remains a cornerstone, with programs safeguarding low-income groups. These actions create an attractive environment for foreign direct investment.

 He confirmed that these positive developments have contributed to the credit rating agencies changing their outlook on Egypt's sovereign rating from "stable" to "positive," supported by a decline in short-term external financing risks due to the economic measures taken by the state and the transition to a flexible exchange rate policy.

He emphasized Egypt's open approach to all nations and financial institutions. He clarified that Egypt's focus on the BRICS group and the New Development Bank isn't intended to antagonize anyone or dismantle the existing system. Instead, it's a long-term strategy to reform a system built on outdated data.

He underscored the importance of the New Development Bank (NDB) in addressing financing limitations and offering fairer loan terms. He stressed that expanding membership, including countries with large sovereign funds and major energy producers, will strengthen the bank's resources and broaden its reach in key regions like the Middle East, North Africa, and Southeast Asia. Additionally, the inclusion of leading grain producers bolsters global food security.

Mr. Prime Minister expressed confidence that the high-level participation at the NDB forum will foster meaningful dialogue, spark innovative ideas, and contribute to achieving shared goals of prosperity and growth.

He wished Ms. Roussef a productive visit to the Suez Canal Economic Zone tomorrow, highlighting the successes achieved there. He also expressed his hope for the New Development Bank's continued growth, with a vision for a future regional office in the New Administrative Capital. This office could serve as a gateway to Africa, Europe, and Asia.

During the opening session, Dr. Madbouly viewed a documentary on the New Development Bank's role in supporting member countries' development efforts. He also heard remarks from Ms. Dilma Roussef, President of the New Development Bank, who expressed gratitude to the Egyptian government for hosting this inaugural forum, marking a new chapter in cooperation between Egypt and the Bank.

Roussef called for strengthening member states' economies, reducing poverty, and building resilience against global challenges. She highlighted the untapped potential within BRICS countries, stating, "Cooperation and collaboration unlock immense development capabilities for BRICS nations. This not only bolsters individual plans but also fuels trade and benefits emerging economies the most."

Roussef acknowledged the ongoing challenges but expressed confidence in the bank's participatory approach. "The path ahead is demanding, but we remain committed to collaboration until we achieve our shared goals," she concluded.

Roussef commended Egypt's significant role and distinguished location as a gateway to Africa and Asia, highlighting its crucial role in the global economy. She pledged the bank's unwavering support for Egypt's future endeavors.

She acknowledged the significance of the Suez Canal and its role in facilitating trade. She also recognized Egypt's position as a leading industrial nation in Africa with a skilled workforce. The expansion of the Suez Canal and the economic zone, she believes, will fuel further development and attract investment, particularly in the industrial sector. Cooperation between Egypt and BRICS countries, she emphasized, holds immense potential.

Roussef pointed to the completion of the New Administrative Capital as a testament to Egypt's development capabilities. She applauded Egypt's comprehensive development vision aimed at building a competitive economy. The partnership between Egypt and the bank, she affirmed, will be instrumental in supporting Egypt's development plans and securing prosperity for its people. "Our priorities align with the priorities of our member states," she concluded.

Roussef concluded by expressing the bank's honour in supporting Egypt's development vision, championed by its leadership. This vision aligns perfectly with the bank's goals, and the bank stands ready to assist with Egypt's prioritized projects across key national sectors. "Through collaboration," she declared, "we can build a more integrated and prosperous future together."

In his subsequent speech, Dr. Mohamed Maait, Minister of Finance, highlighted key indicators within the new general budget that prioritize development and service sectors crucial for attracting investment. This emphasis underscores the government's unwavering commitment to achieving its development goals across various sectors.

Dr. Rania Al-Mashat, Minister of International Cooperation, underscored the timeliness of this forum. It plays a critical role in supporting and advancing Egypt's development plans, which perfectly align with the New Development Bank's goals and its dedication to progress.

She further emphasized the forum's potential to unlock new avenues for economic cooperation and explore innovative mechanisms to strengthen member states' economies. Additionally, she highlighted the forum's role in introducing the business community to the bank's tools and showcasing growth opportunities in Egypt.

At the beginning of his speech, Nandan Kumar Singh, Chairman of the 15th Finance Commission, President of the Institute for Economic Growth, India, thanked President Sisi for his support and sponsorship of the forum. He said that Sisi’s tenure marked a turning point that helped unlock the full potential of relations between Egypt and India, which are important historical ties.

He highlighted the meeting's role and its significance in bolstering the member states' plans and propelling them towards growth, while exploring new avenues for collaboration within this framework. He also outlined the bank's capabilities, areas, and opportunities for cooperation with India, and the positive outcomes that have emerged from this partnership.

Mr. Nandan Kumar Singh also discussed the various challenges that must be addressed in order to achieve the set goals, as well as certain aspects that member states need to take into account. He stressed that the BRICS group can play a significant role in numerous development initiatives and highlighted the significance of the meeting's timing, stating: "The meeting is taking place at a crucial juncture... Amidst challenges that necessitate swift action and innovative approaches."

Prime Minister Dr. Moustafa Madbouly also participated in a "BRICS" dialogue session featuring Dr. Rania Al-Mashat and Nandan Kumar Singh.

This high-level meeting, organized by the New Development Bank in collaboration with the Egyptian Ministry of International Cooperation, served a valuable purpose. It provided a platform to showcase the bank's operations and explore ways to support both the government and private sector in integrating with its development initiatives. The session fostered discussions on potential future collaboration among existing and new BRICS members which aims to maximize Egypt's benefits from its membership in the BRICS group and the New Development Bank.

 The meeting features in-depth discussions on growth and investment themes throughout its two-day duration, encompassing several sessions where the New Development Bank showcases innovative financial instruments that can expedite progress. The sessions also delve into Egypt's strategic endeavors to establish itself as a regional and international hub for transportation and logistics services, alongside fostering enhanced cooperation among countries of the South.

The diverse range of speakers seeks to offer comprehensive perspectives on the challenges and opportunities within the domains of development finance, infrastructure, and international collaboration.

The conference sessions include the axes: Egypt's multi-dimensional plan for growth and investment, in light of its capabilities; the role of the New Development Bank in mobilizing investments for development strategies in Egypt; the future of Egypt as a center for linking the continents of the world; as well as a center for linking the continents of the world by exploring its potential and the government's vision for development as a linking hub, in addition to promoting global development through South-South cooperation.

The bank serves as a key instrument for economic collaboration among member countries. It prioritizes critical areas such as facilitating technology transfer, fostering innovation, addressing food and energy security challenges, developing sustainable infrastructure, and supporting development efforts.

The New Development Bank supports public or private projects through loans, guarantees, equity participation, and other financial instruments, in addition to providing technical assistance to the projects it supports, including projects that are a priority for the Egyptian economy, most notably: transportation projects, water and sanitation projects, clean energy projects, digital infrastructure projects, and urban development projects

On the sidelines of the inaugural NDB international meeting held in the New Administrative Capital, the PM met with the bank's President, Ms. Dilma Rousseff. Dr. Rania Al-Mashat, Minister of International Cooperation, was also present at the meeting.

 


The Prime Minister welcomed the selection of Egypt as the host of the New Development Bank's (NDB) inaugural international conference. This gathering offers a valuable platform to showcase the bank's diverse activities, including its mechanisms for supporting the private sector with soft financing and technical assistance for small and medium-sized enterprises (SMEs).

Looking ahead, the Prime Minister emphasized the NDB's expanding role as new members join the BRICS group. He highlighted the financial strength of these incoming members, which will significantly enhance the bank's capabilities and broaden its operational scope, leading to greater access to soft financing for member states.

In his interview, the Prime Minister engaged in a productive discussion with Dilma Rousseff regarding Egypt's recent development experience. He highlighted the successful construction of the New Administrative Capital, launched in 2016. The government, he explained, prioritized accelerating construction to ensure a functional headquarters within a record timeframe.

He added, "The new administrative capital is a green city. We have taken care to increase green spaces and environmental standards that achieve sustainability."

He emphasized that the government primarily relied on Egyptian companies that have gained extensive experience in building the new administrative capital.

The Prime Minister pointed out that the financial and business district in the new administrative capital houses the largest tower in Africa, which was built in cooperation with one of the largest Chinese companies. Egyptian companies contributed significantly to the construction of the financial and business district, and our primary reliance was on Egyptian workforce.

He said that the government succeeded in transferring 50,000 employees to the new administrative capital and was able to provide essential services to them and their families. The administrative capital also enjoys university and pre-university education services.

Emphasizing ongoing development, he stated, "We have a vision for the new administrative capital to become a regionally attractive city within the next decade."

The Prime Minister addressed the ongoing challenge of informal settlements, particularly those posing safety hazards and lacking proper planning. While the government is providing alternative housing, a comprehensive strategy is needed to address the root causes of this complex issue.

During the meeting, Dilma Rousseff expressed her great admiration for the achievements of the Egyptian government in the New Administrative Capital, praising the Egyptian experience in the field of urban development, which is witnessing a great deal of accuracy and attention to detail.

In another context, Rousseff touched on the important development experience of Brazil in the field of urban development and the fight against slums.

Dr. Rania Al-Mashat expressed her appreciation for Dilma Rousseff's support for holding the first international conference of the New Development Bank in Egypt, praising the ongoing cooperation between Egypt and the BRICS countries.