Egypt, IFC discuss expansion of development finance to increase private sector participation

CAIRO - 30 January 2023: The Minister of International Cooperation, Rania A. Al-Mashat, discussed the expansion of development finance with the International Finance Corporation (IFC) to increase private sector participation in Egypt.

 

The Minister pointed out the importance of expanding the scope of cooperation between the IFC and private sector companies in Egypt through credit lines to banks to promote the development of small, medium and micro enterprises (SMEs), in addition to the availability of green bonds, to increase investments in various fields.

 

Al-Mashat explained that the Ministry of International Cooperation works to advance partnerships between international financing institutions and the private sector in order to accelerate  the implementation of the country's vision aimed at increasing private sector investment and its role in development.

 

For his part, Aliou Maïga, IFC's Regional Director for the Financial Institutions Group (FIG) in Africa, pointed out the importance of the Egyptian market for the IFC, and the corporation's keenness to consolidate ways of cooperation in order to provide more financing mechanisms for the private sector in Egypt.

 

Both agreed to make further efforts to familiarize the private sector and Egyptian banks with the financing instruments available from the IFC for the private sector.

 

In 2021, the IFC financed the first green bonds for the private sector at a value of $ 100 million, from which the Commercial International Bank  (CIB) in Egypt benefited.

 

In a related context, the Minister discussed with IFC officials the expansion of technical support and consultancy efforts to the private sector, in support of the ongoing portfolio of consultancy and technical support of $32.4 million, in the areas of electricity, private sector development, environment, governance and gender, finance and insurance, transport and storage, wholesale and retail trade, textiles and clothing, and others.

 

The two sides discussed the state's efforts to stimulate the green transition, expansion of green buildings and clean energy transition with the participation of the private sector as a key development partner.