(MENAFN- Daily News Egypt) Egypt is on track to secure $2.9bn in new financing from a group of development partners, including the European Union, Minister of Planning, Economic Development, and International Cooperation Rania Al-Mashat told Daily News Egypt. The funds are intended to support the country's general budget and strengthen structural reforms.
This announcement came during Al-Mashat's first press conference following the merger of the Ministries of Planning and Economic Development and International Cooperation.
The financing will be channelled through a combination of mechanisms, including Macroeconomic Support, Budget Deficit Support, and Development Policy Financing. The funds are being provided by a consortium of international institutions including the World Bank Group, the African Development Bank, Japan, the Asian Infrastructure Investment Bank, and the French Development Agency.
Al-Mashat highlighted the ministry's efforts in public investment governance and the national integrated financing strategy, emphasizing the government's commitment to enhancing private sector participation in the economy through improved public investment governance.
The ministry has been working to streamline public investment management through a three-pronged approach:
Planning: The ministry has updated project evaluation criteria, mandated feasibility studies for all projects, developed new investment accounting methodologies, enhanced geographical information integration, and activated local development programs using advanced planning tools. Allocation: The ministry has developed a financing formula to address development gaps across governorates, linking investments to incentives, and ensuring the integration of investment and current spending. Monitoring: The ministry has digitized the monitoring process, encompassing both desk-based and field monitoring, and created an inventory of investment assets.
The government is prioritizing public investments, particularly those exceeding 70% completion, as part of a wider effort to ensure efficient allocation of resources. The ministry is also coordinating with ministries and governorates to address financial arrears and postpone new projects. No new protocols or contracts will be signed without prior coordination with the ministry.
Al-Mashat also elaborated on the national integrated financing strategy, launched at the Future Summit during the 79th session of the United Nations General Assembly in New York in September 2024. The strategy aligns with national strategies and policies, the national structural reform program, state ownership policy, and the sustainable sovereign financing framework. It is also aligned with the economic and social development plan and the reform program supported by the International Monetary Fund.
The strategy aims to support Egypt's efforts to achieve the Sustainable Development Goals by bridging the financing gap and mitigating future financial risks. It prioritizes key sectors, with the potential for expansion to include additional sectors. The strategy emphasizes the catalytic role of public capital in attracting private financing and integrating it into financial tools to bridge the financing gap and increase resource flows to key sectors while promoting innovative financing mechanisms.
Al-Mashat emphasized the government's commitment to promoting equitable economic and social development by ensuring fair distribution of investments across governorates, as evidenced by the increasing allocation of funds to human and social development and local development projects.
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