Min. announces mobilization $2 bln to support Egypt's budget, stimulate reform policies

CAIRO - 24 June 2024: Egyptian Minister of International Cooperation Dr. Rania Al-Mashat, announced the results of the efforts made with multilateral and bilateral development partners over the past months, in coordination with relevant national authorities, to mobilize support for the government’s program to implement reform and structural policies. 

 

The efforts also aimed at supporting the state’s general budget, enhance flexibility macroeconomic competitiveness and encourage the implementation of the objectives of the state ownership policy document, by leading the process of negotiation, coordination, and implementing matrices of agreed-upon procedures and policies.

 

The Ministry of International Cooperation revealed, in a statement, that these efforts resulted in the mobilization of soft financing worth approximately two billion dollars, with $700 million approved by the World Bank’s Board of Directors within the Development Policy Financing (DPF) program, in addition to one billion euros ($1.069 billion) from the European Union, which is scheduled to be signed during the activities of the Egyptian-European Investment Conference under the umbrella of the “Macroeconomic Support and Budget Deficit Support Mechanism” (MFA).

 

This comes in addition to soft development financing from the African Development Bank (AFDB) worth $131 million, as well as $100 million financing from the Economic Development Cooperation Fund (EDCF) is being finalized.

 

Dr. Rania Al-Mashat, Minister of International Cooperation, said that the past period witnessed intense negotiations and coordination between multilateral and bilateral development partners and relevant national bodies, to mobilize budget support funds with the aim of supporting structural reform policies and encouraging private sector participation in development, through 3 main axes. They represent a common factor in various budget support programs implemented with international partners, which are: macroeconomic stability, enhancing resilience, improving competitiveness and the business environment, and promoting the green transition.

 

Al-Mashat confirmed that the ministry is working within the framework of an integrated approach and specific axes to maximize the benefit of international partnerships to support structural reform efforts and empower the private sector in Egypt, explaining that the government has implemented more than 30 procedures and policies to support structural reforms and enhance the competitiveness of the Egyptian economy within the framework of the implemented programs with development partners.