Egypt collects $9.8B in development financing during 2020

CAIRO – 22 December 2020: Ministry of International Cooperation secured $9.8  billion in development financing during 2020 to meet targets by 2030, according to the Ministry’s Annual Report for 2020.

The report clarified that more than $6.7 billion secured for financing sovereign projects and $3.1 billion in support of the private sector. 

The Ministry’s Annual Report for 2020 titled “International Partnerships for Sustainable Development: Writing the Future in a Changing Global Dynamic”, a detailed breakdown of the year showcases multilateralism, Economic Diplomacy, the COVID-19 response plan, and allocation of financing to sectors aligned with corresponding Sustainable Development Goals (SDGs).

“To move forward, to build on the progress of the past years and put the stresses of this year’s adjustment behind us, we need multilateralism and cooperation more than ever, creating the future we all want to be part of,” Minister of International Cooperation, Rania A. Al-Mashat, said. 

In supporting the healthcare sector,  the Ministry of International Cooperation secured $477 million in development financing for 7 projects with development partners that include the World Bank, Arab Fund for Economic and Social Development, USAID, African Development Bank (AfDB), Japan and Canada. As per SDG 3: Good Health and Well Being, Egypt has 36 projects making up for $1.443 billion which is 5.62 percent of the total ODA. Health goes hand in hand with other sectors as well such as food, gender and water. 

Regarding Agriculture & Food Security, the report stated that the development projects in the sector offer solutions that start from the bottom-up rather than focus on merely the market and consumers; food security goes beyond putting an end to hunger, it’s about empowering farmers and their communities. 

“Africa is the world’s future breadbasket, and Egypt is the gateway to Africa,” the report revealed.

The Ministry of International Cooperation secured $100 million in agriculture, irrigation, and national supply through the AFD, EBRD, USAID, OPEC Fund for International Development and bilateral cooperation with Germany.  Moreover, SDG 2: End Hunger makes up 1.89 percent of the ODA financing in 17 projects with $486 million. 

“In Egypt, around 34 projects, worth $3.3 billion, are being executed to achieve the targets of gender equality, with the top targeted sectors including Health (20%), Education (14%), and Micro, Small and Medium-sized Enterprises (MSMEs) (15%). The Ministry of International Cooperation’s current portfolio of projects that exclusively target SDG 5 include 13 projects amounting to $82 million. This is in addition to the other projects in the portfolio that achieve the same goal as a collateral effect to their development,” it stated.

It added that the Ministry has secured an additional financing dedicated to SDG 5, in 2020 with a total of $7 million through bilateral cooperation with Spain and Canada. 

As for education , the Ministry of International Cooperation secured financing agreements with a total of $252 million from multilateral and bilateral partners in Education, from the USAID, Saudi Fund, South Korea, Italy and Germany. There are also 36 projects on SDG 4: Quality Education amounting to $2.361 billion, 9.2% of the total ODA. 

The ministry stated that infrastructure is compelling in attracting investment and development financing for Egypt. The development cooperation portfolio with the Ministry of International Cooperation answering SDG 9: Industry, Innovation and Infrastructure includes 36 projects with a total financing of $5.737 billion, making up 22.3% of ODA financing; which makes it  one of the three highest financed SDGs in Egypt. With an additional 30 projects for SDG 11: Sustainable Cities and Communities, worth $1.497 billion and 34 projects for SDG 7: Affordable and Clean Energy, worth $5.950 billion

It concluded agreements worth $1.3 billion in total dedicated to building resilient infrastructure and promoting inclusive and sustainable industrialization; SDG 9: Industry, Innovation and Infrastructure and a total of $1.066 billion in total dedicated to promoting sustainable cities and communities, making settlements more inclusive, safe and resilient; SDG 11: Sustainable Cities and Communities, according to the report.

Moreover, the ministry secured $1.794 billion in development financing in support of the transportation sector, with development partners that include the EIB, AFD, EBRD, China, and Kuwait Fund for Arab Economic Development (KFAED).

On another vein, the government has set targets for renewables to make up a share of 42% of the country’s electricity by 2035.

“In the renewable energy, electricity and petroleum sector in 2020, the Ministry of International Cooperation signed major financing agreements totalling $677 million with the AfDB, the AFD, and EBRD.,” it noted.

Egypt progressed significantly with multilateral and bilateral development partners with regards to energy and sustainability in advancing towards the UN SDG 7: Affordable and Clean Energy. There are 34 projects within the Ministry of International Cooperation’s portfolio answering SDG 7: Affordable and Clean Energy with a total of $5.95 billion thus making up for 23.2% of the ODA; the highest ODA financing. 

According to the report, under housing and wastewater management, the Ministry of International Cooperation secured financing for $1.417 billion from the Arab Fund for Economic and Social Development, World Bank, Kuwaiti Fund for Arab Economic Development, and the AfDB, EBRD and Germany.  Moreover, within the development portfolio of the Ministry of International Cooperation, there are 43 projects worth $4.99 billion on SDG 6, making up 19.4% of total ODA. 

In 2020, the Ministry of International Cooperation secured a total development financing worth $457 million to MSMEs through the OPEC Fund for International Development, the Arab Fund for Economic & Social Development (AFESD), World Bank, AfDB and Germany. 

There are currently 34 projects in innovation, digitalization and entrepreneurship contributing to 13 SDGs with a total development financing of  $1.014 billion; 4% of Egypt’s ODA portfolio. This contributes to various SDGs, most notably SDG 8: Decent Work & Economic Growth which  includes 42 projects totaling $1.075 billion with a 4.2% ODA financing. 

Regarding the private sector, the Ministry  secured development financing agreements in 2020 with a total of $3.191 billion through direct financing to private sector companies as well credit lines to commercial banks for the financing of SMEs.