Egypt receives $1.9B in financing from development partners for private sector in H1 of 2021

CAIRO – 30 June 2021: The first half of 2021 witnessed multilateral and bilateral development partners financing private sector projects worth $1.9 billion, including $300 million in the energy and environment sectors, according to Minister of International Cooperation, Rania Al-Mashat, said.

During her participation in the signing of the first green bond issuance for the private sector, the minister added that the International Finance Corporation is Egypt's main partner in financing directed to the private sector, with a value of $1.2 billion in various development sectors, infrastructure, education, health, mining, in addition to financial markets.

During her speech at the signing ceremony for the issuance of the first green bonds for the private sector in the local market, at a value of $100 million, the Minister of International Cooperation explained that this first issuance would contribute to the growth of investments in this field significantly in order to achieve the requirements of green development.

Al-Mashat stressed the importance of this issuance, as it is the first participation of the private sector in this rapidly growing global market, which is estimated at more than one trillion dollars.

She pointed out that the market for investment products aimed at sustainable development is growing steadily, with the increasing need to mobilize the capital necessary to achieve the goals of sustainable development 2030.

And she continued: "According to the latest estimates, the value of investment products aimed at sustainable development has increased by more than 80% compared to 2019; these products include green bonds, social bonds, mixed sustainability bonds, and others."

The Minister of International Cooperation noted that green bonds, social bonds and sustainability bonds have emerged as the most common means of financing, and investment in sustainability, the environment, social impact and governance has become at the heart of the economic recovery from the epidemic, led by the private sector.

She said that the signing of the first issuance of green bonds for the private sector between the Commercial International Bank and the International Finance Corporation is a vivid example of the role that the private sector can play in contributing to green recovery and following up on the progress that the Egyptian government has already made in the interest of public investors in the Egyptian market.

She stated that the world went through unprecedented challenges due to the coronavirus pandemic, which had many negative consequences for the global economy, but contributed to reconsidering the order of reconstruction towards a comprehensive, flexible and sustainable green recovery for all parties, explaining that the pandemic proved the pivotal role of the private sector to achieve More inclusive growth and green recovery promotion; This is within the framework of environmental, social and governance principles.

Al-Mashat indicated that the issuance of green bonds has become part of Egypt's innovative strategy to enhance financial sustainability, support environmentally friendly projects, and shift towards a green economy, as Egypt became the first country in the Middle East and North Africa to issue green bonds in September 2020, and the issuance achieved $750 million.

She stated that the Egyptian government is taking positive steps towards green recovery and developing national plans to adapt to climate change and reduce its risks, within the framework of a comprehensive economic reform program that prioritizes green recovery, with a dual focus on access to modern, reliable, sustainable and affordable energy and encourages foreign and domestic private investment, to remove obstacles facing investors.

The minister explained that the Ministry of International Cooperation, through the principles of economic diplomacy, is working to advance multilateral cooperation and promote comprehensive and effective participation with all relevant parties, to achieve the goals of sustainable development, through three principles: the platform for joint coordination and matching development funds with the UN Sustainable Development Goals and a narrative of international partnerships.