Egypt is set to obtain $2.9 billion in new financing from a coalition of development partners, including the European Union, according to Minister of Planning, Economic Development, and International Cooperation Rania Al-Mashat, in an interview with Daily News Egypt. The funds aim to support the country’s general budget and bolster structural reforms.
This announcement was made 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 allocated through various mechanisms, including Macroeconomic Support, Budget Deficit Support, and Development Policy Financing, provided by a consortium of international institutions such as the World Bank Group, the African Development Bank, Japan, the Asian Infrastructure Investment Bank, and the French Development Agency.
Al-Mashat underscored the ministry’s focus on public investment governance and the national integrated financing strategy, highlighting the government’s commitment to enhancing private sector participation in the economy through better governance.
The ministry is streamlining public investment management via a three-pronged approach:
- Planning: Updating project evaluation criteria, requiring feasibility studies, developing new investment accounting methods, enhancing geographic information integration, and activating local development programs with advanced planning tools.
- Allocation: Creating a financing formula to address developmental gaps across governorates, linking investments to incentives, and integrating investment and current spending.
- Monitoring: Digitizing the monitoring process for both desk-based and field evaluations, while also compiling an inventory of investment assets.
The government is prioritizing public investments, especially those over 70% completion, to ensure efficient resource allocation. Coordination with ministries and governorates is vital to addressing financial arrears and postponing new projects, with no new contracts signed without the ministry’s oversight.
Al-Mashat also discussed the national integrated financing strategy, introduced at the Future Summit during the 79th session of the United Nations General Assembly in September 2024. This strategy aligns with national policies, structural reform programs, state ownership policies, and sustainable financing frameworks, while also supporting the International Monetary Fund-backed reform agenda.
Aimed at achieving the Sustainable Development Goals, the strategy seeks to close the financing gap and mitigate future financial risks. It focuses on key sectors while allowing for potential expansion and emphasizes the role of public capital in attracting private financing and enhancing resource flows to crucial sectors through innovative financing mechanisms. Al-Mashat reiterated the government’s commitment to promoting equitable economic and social development, ensuring a fair distribution of investments across governorates.
