Egyptian talks with IFC to increase infrastructure funding

Written by: Mohammed Omran

Dr. Ahmed Rostom held a meeting, Minister of Planning Economic Development, a bilateral meeting with Ethiopis Tafara, Vice President of the International Finance Corporation (IFC) for Africa - one of the institutions affiliated with the World Bank Group, in the presence of Ousmane Dione - World Bank Vice President for North Africa and a high-level delegation of World Bank Group leaders.

This came to discuss the executive steps to enhance joint relations and the latest developments in activating the mechanism for guaranteeing and financing infrastructure projects, in line with the state’s vision to empower the private sector and drive comprehensive development within the objectives of Egypt’s Vision 2030.

Egyptian talks with IFC to increase infrastructure financing in local currency and reduce budget burdens

At the beginning of the meeting, Dr. Ahmed Rostom welcomed the Vice President of the Corporation, praising the pivotal role played by the International Finance Corporation as a strategic development partner in Egypt for nearly 50 years, which has resulted in financing more than 300 projects for the Egyptian private sector, in addition to the current joint work to develop quality programs aimed at raising the percentage of private sector contribution to overall economic activity.

 Procedures for activating the mechanism to guarantee infrastructure projects in Africa and Egypt

The meeting witnessed in-depth discussions on the ongoing coordination efforts between the government and the World Bank Group to study and activate the infrastructure financing and guarantee mechanism in Egypt, which aims to increase the mobilization of financial flows in local currency, and to create flexible and long-term financing tools that contribute to reducing the capital cost of national projects.

The Minister of Planning and Economic Development explained that the government is moving forward strongly in implementing the economic reform plan, noting that the ministry’s vision for the coming period places “the quality of life of the citizen” as the ultimate goal for all public investments and development spending.

Rustam added that the new guarantee mechanism represents a pivotal tool to meet the state’s needs in the energy, transportation and urban development sectors, while at the same time protecting the state’s financial space and reducing pressure on the general budget by relying on financing in local currency, and providing attractive channels for local and foreign capital.

For his part, Ethiopis Tafara, Vice President of the International Finance Corporation (IFC) for Africa, affirmed the Corporation’s firm commitment to increasing its investments directed towards the private sector in Egypt, particularly in vital areas that provide sustainable job opportunities and support inclusive growth.

Tafara noted that the courageous decisions and actions taken by the Egyptian government in the area of fiscal discipline and structural reform have contributed significantly to raising the business environment rating, and have made the Egyptian market a top priority for the institution to expand its financing operations.

It is worth noting that this meeting comes as a continuation of a series of intensive moves by the Ministry of Planning and Economic Development; a high-level meeting was recently held in the presence of Dr. Hussein Issa, Deputy Prime Minister for Economic Affairs, followed by an expanded meeting chaired by the Minister of Planning with the participation of major Egyptian banks, international institutions, and infrastructure companies, to formulate joint frameworks to activate this innovative mechanism.