Minister of Finance Mohamed Maait stated on Wednesday that Egypt’s accession to the membership of the Africa Finance Corporation contributes to opening up broad horizons for investment in infrastructure projects, heavy industries, communications, transportation, logistics, and green transformation.
Maait added that the corporation contributes to providing soft financing for public and private sector projects in a way that helps in achieving development goals and enhancing the capabilities of the Egyptian economy for sustainable growth through green projects.
The minister noted that after the House of Representatives approved Egypt’s accession to the Africa Finance Corporation, Egypt is continuing efforts to stimulate public and private investments. This is in order to help improve standard of living of citizens and improve the services provided to them by strengthening cooperation with our regional partners especially in light of unprecedented global economic challenges.
He further explained that Egypt’s accession to the Africa Finance Corporation corresponds with the country’s goals by increasing green investments to 50% in the FY2024/25 budget through the expansion of clean energy projects, smart transportation, and other developmental and national projects.
This is besides giving more space to the private sector so that it can lead economic growth that is rich in jobs, especially in light of the government’s efforts to stimulate investment, which was reflected in the State Ownership Policy Document and Golden License and others.
Nevine Mansour — Adviser to the Deputy Minister of Finance — said that joining the Africa Finance Corporation helps the Egyptian government to reduce the cost of financing, as government bonds can be offered in international markets at a lower cost through this institution with a high credit rating, which remained A3 according to Moody’s from 2014 until 2022.
Mansour pointed out that joining the corporation also provides advisory and support services to the public and private sectors of member countries to increase their ability to implement their strategic plans for development.
Samaila Zubairu — President and CEO of the Africa Finance Corporation — said that the corporation has a proven record of achievements for more than 15 years in the basic infrastructure sectors of energy, natural resources, heavy industries, transportation, and communications, with an investment portfolio that exceeded $10bn in 37 countries in Africa.
“We are keen to cooperate with all African countries, including Egypt, to advance economic development in all aspects of life. Egypt’s accession as a shareholder in the Africa Finance Corporation is an addition to the institution. We hope to achieve the development goals of Egypt and Africa,” Zubairu added.
