AfDB agrees to grant $271M development financing to Egypt

CAIRO - 19 July 2022: The Board of Directors of the African Development Bank  Group (AfDB) approved a development financing for Egypt worth $271 million, within the framework of the rapid financing mechanism to face the repercussions of the global food crisis, according to which the Bank provides fast and easy financing to all African countries to implement the financial and social programs necessary to face the effects resulting from the crisis. 

 

Egypt’s Minister of International Cooperation, Rania Al-Mashat, said that the development financing approved by the AfDB to support the budget comes within the framework of the government's efforts to enhance efforts to combat the challenges facing development in the current period, as a result of global developments and their related impact on food security.

 

The Board of Directors of the AfDB praised, in a meeting on the financing that will be provided to Egypt, the government's efforts to achieve food security based on the gains and economic reforms adopted by the political leadership since 2016, which strengthened the resilience and resilience of the Egyptian economy in the face of external shocks, according to the minister.

 

Al-Mashat explained that the facilitated development funding directed to support the budget comes against the backdrop of the reforms implemented by the state in key axes, namely supporting agricultural productivity and sustainability, confronting food security risks, enhancing the resilience and resilience of the private sector, and enhancing financial flexibility and transparency.

 

She pointed out that the Ministry of International Cooperation, on behalf of the government and in coordination with the national parties, has negotiated with the AfDB and many development partners over the past period, within the framework of strengthening multilateral cooperation to face the repercussions of the current crisis and support the ability of the Egyptian economy to face external shocks.

 

 

The Minister of International Cooperation added that the soft development finance has a repayment period of about 20 years, in addition to a 5-year grace period, which reflects the importance of these soft development funds in supporting development efforts in different countries, and emphasizes the strategic relationship between Egypt and its multilateral and bilateral development partners.

 

Earlier, the World Bank Group approved $500 million in development financing to enhance food security efforts in Egypt and face the repercussions of the Corona pandemic and the war in Ukraine.

 

The Ministry of International Cooperation had launched national consultations with the African Development Bank to prepare the new country cooperation strategy for the period 2022/2026, with the participation of representatives of more than 17 ministries and government agencies, including the ministries of housing, transport, local development, agriculture, water resources, irrigation, planning, tourism, communications, higher education and the Financial Regulatory Authority (FRA) and the Suez Canal Economic Zone (SCZone).

 

The development cooperation portfolio with the African Development Bank exceeds $6.7 billion, through which more than 107 development projects have been financed in various sectors, including $1.1 billion that has been directed to financing private sector projects.