Egypt to represent Africa in AIIB's 8th annual meeting in Sharm El-Sheikh

Ahram Online , Monday 21 Aug 2023

Egypt is set to represent Africa at the eighth annual meetings of the Asian Infrastructure Investment Bank (AIIB), which will convene in Africa for the first time on 25-26 September in Sharm El-Sheikh, read a statement by the Ministry of Finance on Monday.

AIIB logo.
AIIB logo.

 

As a founding member of the AIIB, Egypt aspires to contribute to fostering Africa-Asia partnership to achieve sustainable development goals, improve services provided to citizens in Africa, and facilitate their livelihoods, said Mohamed Maait, minister of finance and Egypt’s governor of the AIIB.

Egypt aims to leverage the AIIB's growing focus on climate financing to scale up sustainable development efforts across the country. The AIIB plans to allocate half of its investments to climate action by 2025 -- a goal Egypt hopes to tap into.

"The AIIB provides concessional loans for renewable energy, low-carbon transport, water and sanitation, and ecosystem protection -- areas that can increase Egypt's fiscal capacity for green projects," noted Environment Minister Yasmine Fouad at a press conference on Monday. 

Scaling up such initiatives would aid Egypt's progress on priorities outlined in the African Union's Agenda 2063, she added, particularly goals related to climate change impacts.

Ahmed Kouchouk, deputy minister of finance for fiscal policies and Egypt's AIIB executive director, stressed the need for intensified cooperation to build a more resilient global financial system and close financing gaps exacerbated by health and economic crises in emerging economies.

"More stimulation of development cooperation between Egypt and the AIIB is needed, focused on key joint areas aligned with Egypt's vision of private sector support for growth and sustainable development," Kouchouk said.

The officials' remarks suggest Egypt aims to further leverage AIIB financing windows over the coming years to mobilize much-needed funding for large-scale renewable and clean transport projects nationwide. Such efforts could help accelerate the country's economic transition in an environmentally-friendly manner.

The AIIB has dispersed $1.3 billion for infrastructure projects in Egypt to date, including $300 million in water management, $360 million to fund the budget deficit, $210 million to finance 11 private companies in the renewable energy sector, and a credit line of $150 million for the National Bank of Egypt.

Egypt has secured $2.1 billion in concessional financing to the private sector from international partners since the start of 2023.

In 2022, the country secured development financing worth $13.7 billion to support national development objectives, with $2.6 billion dedicated to the private sector.

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