Egypt’s Minister of Planning, Dr. Rania Al-Mashat, held a meeting with the joint delegation from the World Bank and the International Finance Corporation (IFC) to discuss collaborative efforts under the Joint Capital Markets Program (J-CAP). The meeting, which also included representatives from the Ministry of Finance, the Financial Regulatory Authority, and the General Authority for Investment and Free Zones, focused on strengthening Egypt’s capital markets to drive sustainable growth and attract investment.
Key Highlights of the Meeting
In her opening remarks, Dr. Al-Mashat emphasized the importance of developing Egypt’s capital markets, describing it as a key driver for achieving sustainable economic growth, creating job opportunities, and fostering long-term prosperity. She highlighted the Egyptian government’s commitment to modernizing and strengthening its financial sector, recognizing the need for an efficient and attractive capital market to diversify funding sources and stimulate innovation.
Pioneering Sustainability: Egypt’s Carbon Trading Market
Dr. Al-Mashat also showcased several government initiatives aimed at enhancing Egypt’s capital markets, including the launch of Africa’s first voluntary carbon trading market in August 2024. Supported by the World Bank, this new market is designed to attract both local and international investors while driving projects that reduce carbon emissions across sectors like agriculture and industry.
Additionally, she highlighted Egypt’s issuance of the region’s first sovereign green bonds in 2020, reaffirming Egypt’s ongoing commitment to advancing its capital markets and accelerating the transition toward a sustainable financial ecosystem.
Strategic Partnership with J-CAP
Regarding Egypt’s potential partnership with the J-CAP program, Dr. Al-Mashat expressed confidence in the value of collaborating with the World Bank and IFC. She noted that the global expertise and experience of these institutions could play a crucial role in supporting Egypt’s economic growth, especially in today’s unstable global economic environment.
She outlined the strategic goals that the partnership with J-CAP aims to achieve, including improving the efficiency of Egypt’s domestic debt market, expanding the investor base, increasing financing opportunities, and supporting small and medium-sized enterprises (SMEs). The cooperation will also focus on expanding Egypt’s carbon market and turning it into a regional hub while activating the bond market for large and medium-sized companies.
A Vision for Sustainable Development
The collaboration with J-CAP is expected to help unlock the full potential of Egypt’s capital markets and support the country’s national development goals. Dr. Al-Mashat emphasized that the partnership would play a pivotal role in enhancing the resilience of the Egyptian economy, promoting inclusivity, and driving long-term sustainable development.
J-CAP Program Overview
Launched in 2017 by the World Bank and IFC, the J-CAP program aims to help developing countries realize the benefits of strong local capital markets. The initiative began implementation in 2018 and mobilizes resources across the World Bank Group to provide tailored advice and investments designed to create a supportive environment for healthy capital markets.
This partnership with J-CAP represents a critical step in Egypt’s broader strategy to strengthen its financial markets, attract more investments, and create a more resilient and sustainable economy.
