Rania Al-Mashat, the Minister of International Cooperation and Governor of Egypt at the World Bank Group, met with a high-level delegation from the International Finance Corporation (IFC), led by Sheikh Omar Sylla, the Regional Director for North Africa and the Horn of Africa, Jumoke Jagun-Dokunmu, the Chief Investment Officer for Africa, and Saad Sabra, the Director of the new IFC office in Egypt.
The meeting focused on the existing cooperation with the IFC to empower the private sector and increase investments in various fields, in line with the Country Partnership Framework (CPF) between Egypt and the World Bank for 2023- 2027, and the government’s efforts to enhance the role of the private sector in development.
Al-Mashat welcomed the IFC’s delegation and praised the close relations with the IFC, as the World Bank’s arm for financing the private sector. She also highlighted the partnerships that have increased the IFC’s investments in Egypt in various private sector companies to support development efforts, worth over $7bn.
The meeting discussed the IFC’s goals in Africa and its desire to increase the volume of investments and diversify programs to include more sectors and groups. Al-Mashat also discussed the existing partnerships with the government to empower the private sector in Egypt.
They also discussed the possibility of the IFC’s participation in the projects of the Presidential Initiative “Decent Life” to develop the rural villages in Egypt, by financing private sector companies involved in the initiative.
The IFC commended the initiative and its role in improving the living standards of rural citizens and its impact on their lives through infrastructure development and human capital investment.
The meeting also discussed the role of the MSMEs in financing small projects within the “Decent Life” initiative, and the potential of enhancing cooperation with the IFC to increase financing for the private sector at the level of small and medium enterprises.
Al-Mashat emphasized the government’s keenness to strengthen the strategic partnership with the IFC, which will increase investments and financing for the private sector in various fields, in line with the strategy with the World Bank, which is based on three main pillars: More and Better Private Sector Jobs, Enhanced Human Capital Outcomes, and Improved Resilience to Shocks.
Al-Mashat mentioned in the report that the IFC is preparing to encourage foreign direct investments in the healthcare sector in Egypt, and expressed the government’s interest in this sector and the participation of the private sector in its projects.
The relationship between the Egyptian government and the IFC is part of the broader relationship with the World Bank, and the relationship with the institution is based on three principles: employment, integration, and comprehensiveness. The institution’s current investment portfolio in Egypt amounts to about $1.84bn in the sectors of financial markets, agricultural business, health, education, manufacturing, tourism, retail, construction, real estate, infrastructure, petroleum and mining. In January 2024, the IFC pumped investments into the private sector worth $26.8m in a number of sectors.
In June 2023, the government signed an agreement with the IFC, under which the institution will provide advisory services and technical support for the asset monetization program, in light of Egypt’s commitment to this programme as one of the tools for empowering the private sector and increasing its contribution to the Egyptian economy, based on the directives of the President.
