AIIB approves $360mln fund for development policies in Egypt: Minister

Aims to support the economy

  
Aerial View of Cairo city. Image used for illustrative purpose.

Aerial View of Cairo city. Image used for illustrative purpose.

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Rania Al-Mashat, Minister of International Cooperation, announced on Tuesday that the Asian Infrastructure Investment Bank (AIIB) agreed to finance development policies in Egypt with $360m, to support the state’s efforts to achieve recovery from the coronavirus (COVID-19) pandemic’s repercussions.

It comes as part of the development partners’ $720m finance for the Development Policy Financing Framework (World Bank and AIIB), with $360m each.

The Minister explained, in a statement, that the Development Policy Financing Framework, which was prepared by the government in cooperation with the two development partners, aims to support the economy and the second stage of structural reforms, through three main pillars, namely enhancing financial sustainability, stimulating the participation of the private sector in development efforts, and boosting the economic empowerment of women.

She explained that this framework reflects the policy pursued by the Egyptian government to achieve integration between the efforts of development partners to maximize the impact of development cooperation, through the participation of more than one development partner in financing projects that represent a priority for the state.

As for the financial sustainability pillar, the framework aims to improve the management of state-owned enterprises by enhancing transparency and reporting, and stimulating the transition towards a green economy.

In the second pillar, the project works on stimulating the participation of the private sector in development efforts by supporting digital and financial inclusion, and facilitating trade and customs-related operations, with the aim of improving Egypt’s competitiveness and creating jobs in the private sector, in addition to enhancing the participation of the private sector in waste management projects, which lays the foundation for the development of green.

The government also aims to promote women’s economic empowerment, support legislative and regulatory reforms that enhance women’s participation in the workforce, and the government’s adoption of a national code of conduct to promote safe and decent transportation for women.

Al-Mashat affirmed the state’s determination to move forward with economic and structural reforms, which are an integral part of its quest to achieve a flexible, comprehensive and sustainable economic recovery that enables the state to face future shocks, and stimulates endeavors aimed at achieving the national development vision that is consistent with the United Nations development agenda.

Egypt’s cooperation portfolio with the AIIB after this programme exceeds $1bn in development and investment funds for the public and private sectors.

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