Business Hub – Cairo:
After the negotiations carried out by the Ministry of International Cooperation over the past period, Against the background of the reforms undertaken by the government and its efforts to face the repercussions of the current crisis, The Board of Directors of the African Development Bank unanimously approved, Development financing for Egypt amounting to 271 million dollars. As part of the rapid financing mechanism to face the repercussions of the global food crisis, According to which the Bank provides quick and easy financing to all African countries to implement the necessary financial and social programs to face the effects resulting from the crisis.
Dr. Rania Al-Mashat , Minister of International Cooperation,said: The development financing approved by the African Development Bank for Egypt, to support the budget, It comes within the framework of the government’s efforts to enhance efforts to combat the challenges facing development in the current period. As a result of global developments, and its related impact on food security, Pointing out that the Board of Directors of the African Development Bank praised in a meeting regarding the financing that will be provided to Egypt, With the government’s efforts to achieve food security based on the economic gains and reforms adopted by the political leadership since 2016, Which enhanced the resilience and resilience of the Egyptian economy in the face of external shocks.
Al-Mashat explained, The concessional development funding directed to support the budget comes against the backdrop of the reforms implemented by the state in major axes, namely supporting agricultural productivity and sustainability, addressing food security risks, enhancing the resilience and resilience of the private sector, enhancing financial flexibility and transparency, Pointing out that the Ministry of International Cooperation, on behalf of the government and in coordination with the national parties, has negotiated with the African Development Bank and many development partners over the past period, Within the framework of strengthening multilateral cooperation to face the repercussions of the current crisis and support the ability of the Egyptian economy to face external shocks.
The Minister of International Cooperation added, The concessional development finance has a repayment period of about 20 years. Plus a 5-year grace period, This reflects the importance of these soft development finances in supporting development efforts in different countries. It emphasizes the strategic relationship between Egypt and its multilateral and bilateral development partners.
It is worth noting that the World Bank Group last month approved $500 million in development financing to enhance food security efforts in Egypt and face the repercussions of the Corona pandemic and the war in Ukraine.
The Ministry of International Cooperation had launched national consultations with the African Development Bank to prepare the new country cooperation strategy for the period 2022/2026, with the participation of representatives of more than 17 ministries and government agencies, including the ministries of housing, transport, local development, agriculture, water resources, irrigation, planning, tourism, communications, higher education and the General Authority Financial Supervisory Authority and the General Authority for the Economic Zone of the Suez Canal.
The development cooperation portfolio with the African Development Bank exceeds $6.7 billion. Through it, more than 107 development projects in various sectors have been financed. Of this, $1.1 billion was directed to finance private sector projects.
