In view of the challenges facing the global economy, banks should provide innovative solutions to enable countries to continue on their development path.
This statement by Minister of International Co-operation and Governor of Egypt at the World Bank Rania al-Mashat came during the 2023 Spring Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) in Washington, with various bank directors to discuss files of joint co-operation.
Al-Mashat met with WB Senior Managing Director Axel van Trotsenburg, WB Middle East Region Vice President Ferid Belhaj, WB Executive Director Mansour Al-Shamali and WB Managing Director of Operations Anna Bjerde.
The discussions addressed strengthening the role of the WBG in financing development and climate action across member states, reviewing the requirements for the bank’s work approach and ways to enhance its role in facing development challenges, eradicating poverty, promoting prosperity in developing and emerging economies, and expanding climate financing. These discussions take place ahead of the annual meetings in Morocco that will be held later this year.
In this regard, al-Mashat referred to the close relationship between the government and the WBG, and Egypt’s appreciation for the joint efforts and development co-operation relations, in order to support the various fields of development in accordance with the country’s development priorities and its commitment to the Sustainable Development Goals (SDGs).
The minister said that multilateral development banks play a vital role in promoting development work with developing countries and emerging economies. The minister added that in light of the complex challenges facing the global economy at this time, banks are required to provide more innovative solutions and mechanisms to enable countries to continue on their development path.
The meetings also discussed projects within the Country Platform for the Nexus of Water, Food and Energy (NWFE Programme), which was launched during COP27 in Sharm El-Sheikh. They also discussed future steps to implement projects and transfer the Egyptian experience to member states within the North African region.
Moreover, al-Mashat referred to the ongoing preparations for the official launch of the Country Partnership Framework (CPF) between Egypt and the WBG for 2023-2027, next May, after its approval by the Board of Executive Directors on March 21. The minister stressed the importance of this new strategy in supporting national development objectives, and its compliance with strategies and presidential initiatives.
The new CPF enhances development efforts, through its three pillars: increasing and improving job creation, empowering the private sector-led investments and job opportunities; enhancing investment in human capital via inclusive, equitable and improved health and education services as well as effective social protection programmes; and improving the resilience of response to shocks by supporting macroeconomic management and climate change adaptation and mitigation measures.
Al-Mashat thanked the WBG for its continuous co-ordination and co-operation for more than a year in the technical preparation of the new CPF, in co-operation with the private sector and civil society organisations, to ensure that the strategy includes all priority sectors in the country.
During the meetings, al-Mashat discussed the ongoing development co-operation portfolio with the WBG, development finances and technical support efforts in various sectors, referring to the programmes that were recently approved in co-operation with the bank and which enhance the state’s efforts in the field of food security, social protection, investment and trade. This includes the approval of $500 million in development financing for the emergency response to food security challenges, development funding to expand social protection efforts through the Takaful and Karama Program, at a value of $500 million, and financing of a project to develop the trade logistics line between Cairo and Alexandria at a value of $400 million.
They also discussed future projects with the bank in various areas of development and ongoing consultations between the bank and national entities to enhance investment in human capital, support the competitiveness of the Egyptian economy and build resilience.
The ongoing portfolio of development cooperation with the bank includes 14 projects worth $7 billion distributed in several priority development sectors for the country, and also includes 23 projects for technical and advisory support and capacity building. Moreover, Egypt launched the first Country Climate and Development Report (CCDR) in the Middle East and North Africa region, in co-operation with the WBG, in order to review the challenges and opportunities available to promote development and climate action.
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