(MENAFN- Daily News Egypt) Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, delivered the opening speech at the 18th session of the“People and Banks” Economic Conference, organized by the Arab media Center.
In her speech, Al-Mashat highlighted the conference as a vital platform for discussing challenges and opportunities in the Egyptian Economy amid regional and global shifts, thanking Mostafa El-Feki for organizing the event.
Al-Mashat explained that the global financial system is undergoing an unprecedented test, coinciding with an economic slowdown due to consecutive health, economic, and geopolitical crises over the past few years, compounded by challenges from climate change. These crises have negatively affected the ability of countries to meet their financial and developmental commitments.
She affirmed that these challenges have revealed the shortcomings of the global financial system in mobilizing stable, long-term financing on a large scale for investments needed to achieve sustainable development goals, particularly with increasing development needs in countries. She noted that the financing gaps for developing countries range from $2.5trn to $4trn annually, and the developmental challenges have affected all countries, particularly those with lower growth.
Al-Mashat continued:“Despite the efforts made by international financing institutions and governments, the severity of the challenges necessitates continued cooperation between regional and international financing institutions to provide fair and equitable financing that meets the developmental needs of countries.”
Furthermore, coordination between central banks and governments at the international level is crucial to confront escalating international crises through the alignment of monetary and fiscal policies, ensuring that these policies are consistent with economic reform measures, thereby supporting a joint response to financial volatility.
The session's attendees included Alaa Farouk, Minister of Agriculture; Mostafa El-Feki, Chairperson of the Arab Media Center; Tarek El-Kholy, Deputy Governor of the Central Bank; Mohamed El-Etreby, Chairman of the Federation of Egyptian Banks; Hisham Okasha, CEO of Banque Misr; Yehia Abou El-Fettouh, Deputy Chairperson of the National Bank; along with prominent bankers and private sector representatives.
The National Structural Reform Programme aims to strengthen confidence in Egypt's economy, focusing on macroeconomic resilience, competitiveness, and a green transition through renewable energy and a voluntary carbon market. Al-Mashat highlighted efforts to advance green financing, with Egypt's international partnerships bolstering development funding. Since 2020, over $11bn in concessional financing and investments have supported Egypt's private sector, with banks like the National Bank of Egypt, Banque Misr, and others receiving substantial funds.
Al-Mashat highlighted that international investments have strengthened Egyptian banks, enabling greater support for SMEs and environmentally friendly projects, and advancing Egypt's green transition. She also announced the Green Sustainable Industry Programme (GSI) agreement with the European Investment Bank, providing €271m for projects in resource efficiency, renewable energy, low-carbon hydrogen, and carbon removal. This programme paves the way for more international collaborations.
The Ministry launched the EU Tigara programme to enhance Egypt's enterprise and trade development systems and boost SME participation in industrial value chains. Al-Mashat noted that international institutions have enabled Egyptian banks to issue the first private-sector green bonds in 2021. Recently, the European Bank for Reconstruction and Development (EBRD) signed a €70m risk guarantee agreement with QNB Egypt to support SME growth and reduce credit risks. This partnership highlights the expanding range of innovative financial instruments in Egypt's banking sector and strengthens collaboration with international partners.
The Ministry of Planning launched the Hub for Advisory, Finance & Investment for Enterprises to empower Egypt's private sector with innovative financing from international institutions, enhancing developmental funding and technical support. Al-Mashat highlighted efforts to boost the entrepreneurial ecosystem through a specialized ministerial group focused on fostering entrepreneurship, attracting investments, and coordinating initiatives for startups. This group collaborates with the Central Bank, commercial banks, and stakeholders to position Egypt as a regional hub for startups and innovation.
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