Egypt’s Minister of Planning, Economic Development, and International Cooperation, Rania Al-Mashat, has called for financial reform at the G20 Meeting in South Africa. Al-Mashat participated in a high-level workshop on financing for development as part of the G20 meetings in South Africa. The workshop, organised by the Development Bank of South Africa, the Presidential Climate Commission of South Africa, the African Climate Foundation, the French Development Agency, and the World Resources Institute, served as a platform for exchanging experiences among countries.
During her address, Al-Mashat emphasised the need for more efficient and equitable financing mechanisms for emerging markets to overcome financial constraints. She advocated for the reform of the global financial system and increased investment flows to developing countries through innovative financing tools.
“Emerging markets need more efficient and equitable financing mechanisms to address the global financial constraints,” Al-Mashat said.
The minister highlighted the pivotal role of country platforms in achieving tangible impacts by enhancing partnerships and mobilising development finance to tackle climate change. According to Al-Mashat, these platforms have gained increasing attention in international forums. She affirmed the importance of “country ownership” as a key element in enhancing the effectiveness of these platforms and their ability to mobilise climate investments.
Al-Mashat also noted the significance of the recent statement issued by multilateral development banks (MDBs) on country platforms to support climate action during the COP29 conference. She stressed that MDBs have a vital role in enhancing climate efforts by supporting the development of country platforms, contributing to coordinating efforts among various stakeholders, and mobilising the necessary financing to achieve nationally determined contributions (NDCs).
“Multilateral development banks play a vital role in supporting national platforms for climate action,” Al-Mashat said.
Al-Mashat said that country platforms facilitate coordination among governments, the private sector, civil society, and international partners, thereby enhancing the impact of these efforts on communities. This approach was agreed upon by the G20.
Al-Mashat reviewed Egypt’s experience in launching the country platform for the “NWFE” program, a nexus of water, food and energy sectors. She said that the program follows a national, country-led approach based on practical vision and planning. She clarified that nine priority projects have been identified, balancing adaptation, resilience, and climate change mitigation, in line with Egypt’s National Climate Change Strategy 2050. These projects were selected through an evaluation process led by the Egyptian government and categorised into three main areas addressing the interconnected challenges of water scarcity, food security, and energy needs, helping to bridge gaps through offering investable projects.
“Egypt’s experience in launching country platforms has become a model for other developing countries,” Al-Mashat said.
According to Al-Mashat, the program adopts a blended finance approach, enabling it to effectively address the socio-economic challenges related to climate change. She explained that it serves as a guiding framework to mobilise financial resources to support Egypt’s transition to a sustainable climate agenda. She said that the platform has become a model for other developing countries, such as North Macedonia and Tanzania, that have requested technical support from Egypt to replicate the experience.
“The ‘NWFE’ program follows a blended finance approach to engage the private sector in climate action,” Al-Mashat said.
Al-Mashat said that the platform utilises a variety of financing sources, including debt swaps, guarantees, concessional financing, grants, and private investments, emphasising the principle of “just financing” as a key element. Al-Mashat said that, through joint efforts with international partners, the platform has mobilised approximately $3.9bn in concessional development finance for the private sector to fund renewable energy projects with a capacity of 4.2 gigawatts, as well as decommissioning thermal power plants with a capacity of 1.2 gigawatts. As a result of these joint efforts, Egypt updated its renewable energy targets within the NDCs in 2023, bringing forward the goal of generating 42% of electricity from renewable sources from 2035 to 2030.
Al-Mashat concluded by reiterating the importance of working according to the priorities and national vision of each country while considering the international agenda and maximising the benefits of partnerships for a sustainable future for future generations. She also mentioned preparations for the fourth Financing for Development Conference in Spain later this year and its importance in continuing global efforts to achieve sustainable development, enhance the reform of the international financial system, and contribute to increasing capital flows. Al-Mashat said that Egypt has launched a comprehensive national strategy for financing development that integrates both domestic and external financing along with innovative financing mechanisms to create a coherent and transparent framework for financing for development.
Also participating in the sessions were Rudi Dicks, head of projects at the South African Presidency Office; Sri Mulyani, Indonesian finance minister; Ivan Oliveira, deputy minister of finance for sustainable development of Brazil; Susana Muhamad, minister of environment and sustainable development of Colombia; Cheikh Niane, deputy minister of energy, oil, and mining of Senegal; as well as officials from the Development Bank of South Africa and investment funds.
