Debt burden on low- and middle-income states threatens poverty eradication efforts: Egypt at BRICS meeting

CAIRO – 2 June 2023: Egypt’s Foreign Minister Sameh Shoukry highlighted the importance of enhancing the efficiency and comprehensiveness of mechanisms for dealing with debts.

He made the remarks as he participated in the BRICS bloc virtual ministerial meeting, held in South Africa’s Cape Town on Friday.

In a speech, Shoukry highlighted the need for warning against the impact of this current global crisis on low- and middle-income countries, whose debt burden threatens their efforts during the past decades to eradicate poverty.

The current international crises in terms of food, energy, debt and climate require a comprehensive dialogue among developing countries on ways to promote peace and prosperity, the top Egyptian diplomat said.

The current global development financing gap requires engaging in discussions on reforming multilateral development institutions as well as establishing new financing mechanisms, Shoukry said.

He also stressed the importance of diversifying economic opportunities, trade partners and funding sources.

Egypt attaches great importance to its relationship with BRICS and other developing countries with which it shares positions on global economic challenges and opportunities, Shoukry said.

Shoukry also highlighted Egypt’s commitment to maintain action and multilateral cooperation based on national sovereignty, mutual respect, common benefits and solidarity.

Egypt's joining of the BRICS New Development Bank in 2021 and the Asian Infrastructure Investment Bank (AIIB) in 2016 proves Egypt's support for both bank’s efforts to strengthen their presence in developing countries, especially in Africa, Shoukry said.

This comes in a way that expands the development financing options available for infrastructure in the continent, he added.

Shoukry, however, stressed that such endeavors should not be a substitute for multilateral development financing institutions, which have to be reformed to be able to respond to the priorities of developing countries.

In this regard, Egypt, during its presidency of the COP27 Climate Conference, led a multilateral consensus on demanding the reform of international financial institutions and multilateral development banks.

Such reforms would help facilitate the provision of financing through grants and soft loans, Shoukry said.

Egypt also launched discussions on loss and damage finance to support developing countries affected by extreme weather events, the foreign minister added.

Shoukry also stressed Egypt's commitment to continue playing an active role in promoting the interests of developing countries at the international level and to support South-South cooperation.

Egypt also looks forward to strengthening cooperation with the BRICS bloc, Shoukry added.