Dr. Rania A. Al-Mashat, the Minister of International Cooperation and Governor of Egypt at the World Bank Group met with a high-level delegation from the International Finance Corporation (IFC).
The delegation was led by Sheikh Omar Sylla, who is the Regional Director for North Africa and the Horn of Africa at IFC. Other delegation members were Jumoke Jagun-Dokunmu, Chief Investment Officer for Africa, and Saad Sabra, the Director of the new IFC office in Egypt.
During the meeting, they discussed various aspects of their existing cooperation with the IFC. The main focus was to empower the private sector and increase investments in all fields.
The meeting aligns with the Country Partnership Framework (CPF) between the Arab Republic of Egypt and the World Bank 2023- 2027. The government focuses on empowering the private sector and enhancing its role in development efforts.
During the meeting, H.E. Rania Al-Mashat welcomed the delegation from the International Finance Corporation (IFC), including the Chief Investment Officer in Africa and the new Director of the IFC’s office in Egypt. She emphasised the close relationship between Egypt and the IFC, which is the arm of the World Bank that provides financing for the private sector. She also highlighted the partnerships that have been implemented over the past years to increase the IFC’s investments in various private sector companies in Egypt to support development efforts, which are worth over $7 billion.
The meeting also discussed the IFC’s goals in Africa and its desire to increase the volume of investments and diversify programs to include more sectors and non-targeted groups. H.E. Al-Mashat also discussed the existing partnerships with the government to enhance the empowerment of the private sector in Egypt.
At the meeting, they discussed the IFC’s interest in participating in the implementation of the Presidential Initiative “Haya Karima.” The initiative aims to develop rural areas in Egypt by financing private sector companies involved in the project. The IFC expressed its appreciation for the initiative and its impact on the standard of living of rural citizens through infrastructure development and investment in human capital.
Additionally, the conversation touched on the role of MSMEs in financing small projects within the initiative. They also explored the possibility of enhancing collaboration with the IFC to increase financing available to the private sector at the small and medium enterprises level.
During a recent meeting, Al-Mashat emphasized the government’s commitment to strengthening its strategic partnership with the International Finance Corporation (IFC).
This partnership will result in an increase in investments and financing directed towards the private sector in various fields. This is in line with the strategy being implemented by the World Bank, which has three main pillars:
- Creating More and Better Private Sector Jobs: by supporting the creation of an empowering environment for the private sector, and job opportunities. This will create a level playing field for the private sector.
- Enhancing Human Capital Outcomes: by supporting the provision of inclusive, equitable, and improved health and education services, as well as influential social protection programs.
- Improving Resilience to Shocks: by strengthening macroeconomic management, and implementing climate change adaptation and mitigation measures.
Al-Mashat mentioned a report from the International Finance Corporation (IFC) that aims to promote foreign direct investments in Egypt’s healthcare sector. The government is interested in developing this sector and is looking for private sector participation in implementing its projects.
The relationship between the Egyptian government and the IFC is a part of a broader relationship with the World Bank, based on three principles: employment, integration, and comprehensiveness. The IFC’s current investment portfolio in Egypt amounts to approximately $1.84 billion in various sectors such as financial markets, agriculture, health, education, manufacturing, tourism, retail, construction, real estate, infrastructure, petroleum, and mining.
In January 2024, the IFC invested $26.8 million in the private sector across multiple sectors. In June 2023, the government signed an agreement with the IFC, wherein the institution will provide advisory services and technical support for the asset monetization program. This program is a tool to empower the private sector and increase its contribution to the Egyptian economy as directed by the President of the Republic.
