Egypt pens $4.5bln development finance deals in 2020, 2021

Al-Mashat said that theses agreements provide banks operating in the Egyptian market with finances to on-lend small- and medium-sized enterprises

  
A customer counts his U.S. dollar money in a bank in Cairo, Egypt March 10, 2016.

A customer counts his U.S. dollar money in a bank in Cairo, Egypt March 10, 2016.

REUTERS/Amr Abdallah Dalsh

ArabFinance: Egypt signed development finance agreements with its development partners with a total value of $4.5 billion during 2020 and 2021, Minister of International Cooperation Rania Al-Mashat announced.

The announcement took place during Al-Mashat’s participation in the 7th edition of the ‘CEO Thoughts Conference’, which kicked off on December 5th in Cairo.

The conference discussed how the Egyptian economy can mitigate the effects of a global recession.

Al-Mashat said that theses agreements provide banks operating in the Egyptian market with finances to on-lend small- and medium-sized enterprises, offer direct investments for companies and finance Egypt’s first private sector-led green bonds, which were issued by the Commercial International Bank in 2021.

She added that the development policy finances Egypt has obtained from the World Bank (WB) and the Asian Infrastructure Investment Bank (AIIB) with a total value of $750 million that aims to support the country’s sustainable and inclusive economic recovery efforts.

“This would be achieved through three key pillars; enhancing overall financial stability, fostering private sector participation in the country’s development efforts through financial and digital inclusion, and pushing forward women’s empowerment through regulatory and legislative reforms,” Al-Mashat explained.

She further noted that despite the global demand increase on global financing resources — especially low-cost finances during the past two years — Egypt’s ambitious development plans have enabled the government to conclude development financing agreements amounting to $9.8 billion in 2020 covering various economic sectors.

Al-Mashat pointed out that the development financing factsheet for 2021 will be announced soon.

During the event, the CEO of Egypt’s Sovereign Wealth Fund Ayman Soliman revealed that the fund is about to create a sub-fund for investing in the education sector, adding that the fund currently has five sub-funds focused on the same purpose.

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