Discussion with officials of the Multilateral Investment Guarantee Agency (MIGA) about launching the unified guarantee platform next July

By Mary Nady

During the spring meetings of the International Monetary Fund and the World Bank held in Washington DC, Dr. Rania Al-Mashat, Minister of International Cooperation, held meetings with Makhtar Diop, Managing Director of the International Finance Corporation (IFC), and also met with Hiroshi Matano, Executive Vice President of the Multilateral Investment Guarantee Agency (MIGA), Ethiopis Tafara, MIGA Vice President, in the presence of Mr. Abdelaziz El-Mulla, Executive Director of the World Bank, and Ambassador Hisham Seif El-Din, Alternate Executive Director for Egypt at the World Bank, to discuss efforts to advance the empowerment of the private sector in Egypt.

International Finance Corporation

The Minister of International Cooperation held a session of discussions with IFC’s Makhtar Diop, in the presence of Sergio Pimenta, Vice President of the Africa IFC.

They discussed developments in the ongoing cooperation with the IFC, most notably working as a strategic advisor to the government in implementing the asset monetization program, in accordance with the agreement signed last June.

This is in light of the state’s endeavor to provide the opportunity for more partnerships with the private sector, enhance technical support, and stimulate the IFC’s investments in the private sector in Egypt.

The meeting discussed the ongoing efforts with the IFC to finance and develop the private sector in Egypt, where the Minister thanked the institution’s officials for their efforts, stressing that the coming period will witness more work, especially in light of the steps that have been taken to encourage investments and develop the private sector.

H.E. also stressed the importance of the IFC’s participation in the investment conference scheduled to be held with the European Union next June, which will open the door to more cooperation and coordination to attract foreign investments to the Egyptian market.

There was also talk about ongoing projects and its implementation and the strategic partnership between the IFC and the government in the government proposals programme, in addition to the partnership between the IFC, the European Bank for Reconstruction and Development (EBRD) and the Sovereign Fund to promote seawater desalination projects.

In this regard, the Minister indicated the importance of the IFC’s contribution to supporting the private sector in 3 key sectors that are at the top of Egypt’s priorities are green hydrogen, renewable energy, and seawater desalination.

The IFC applauded the existing partnership with Egypt, stressing that the country has success stories in cooperation with international institutions and achieving development on the ground that can be transferred to African countries, pointing out that the coming period will witness directing more credit lines to Egyptian companies, as the IFC is working to expand the scope of its operations by increasing contributions and investments in a way that enhances liquidity in the local market and supports private sector companies.

Multilateral Investment Guarantee Agency (MIGA)

During the meeting with officials from the Multilateral Investment Guarantee Agency (MIGA), efforts to develop cooperation with MIGA were discussed to enable the private sector and increase its participation in achieving development, in light of the state’s development vision aimed at increasing the percentage of private sector participation in various sectors.

At the beginning of the meeting, MIGA officials thanked Al-Mashat for her continued efforts to support the agency’s work in Egypt, enabling it to expand the scope of its role in investment guarantees and stimulating the private sector. The agency’s constructive contributions to pivotal projects such as Benban Solar Energy Complex, as well as guarantees directed to the Norwegian company SCATEC to implement its development projects in Egypt.

The meeting also witnessed discussions on the ongoing efforts to maximize the role of the MIGA within the measures taken by the World Bank to develop its role in achieving international development, by launching a unified platform for guarantees that is provided through the “one-stop-shop” service, to simplify work procedures and improve access on financing, and accelerating implementation through a new and appropriate market, making them powerful catalysts for attracting private sector investment and trade financing, which drives economic growth and improves public services in developing countries.

The meeting witnessed a discussion of the details of future projects and the guarantees provided by the agency in the Egyptian market in order to stimulate private sector investments, as the Minister of International Cooperation affirmed the state’s keenness to activate the role of the private sector and support it through international partnerships to increase its participation in various development efforts, stressing during the meeting the role of the MIGA as one of the World Bank’s affiliates, promotes private sector investments in developing countries and emerging economies through guarantees, risk management services, and providing financing to companies.

MIGA officials stated that the agency is working to utilize the positive momentum in the Egyptian market, especially after the economic and structural reforms that have been implemented. In this regard, organizing a workshop for various stakeholders to introduce the guarantee services provided by the agency to expand the scope of its work in Egypt was discussed.

Since 2012, the MIGA has covered investments worth approximately $500 million in the local market. It also announced its commitment to supporting vital development sectors in Egypt, most notably renewable energy and sustainable transportation, and building on successful partnerships with the private sector, especially in the Benban solar power station in Aswan.

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