‘Egypt supports New Development Bank’s sustainable energy vision’
|Published
EGYPT is fully committed to supporting the mission by the New Development Bank (NDB) to help finance infrastructure development projects in the global south.
This was said by Dr Rania Al-Mashat, the governor of the New Development Bank (NDB) for Egypt, and Egypt’s Minister of Planning, Economic Development and International Co-operation, at the opening ceremony of the ninth annual meeting of the NDB on Friday.
Egypt stood ready to work alongside its BRICS partners to strengthen South-South co-operation and contribute to its shared prosperity, she said.
“This year is particularly significant for Egypt, as we join you here in the annual meeting for the first time as a BRICS+ country. This membership represents not only a recognition of our growing economic potential, but also an alignment with the values and objectives shared by all BRICS nations — values rooted in fostering inclusive growth and enhancing co-operation among emerging markets and developing countries,” she said.
The NDB is a multilateral development bank established by Brazil, Russia, India, China and South Africa (BRICS) with the purpose of mobilising resources for infrastructure and sustainable development projects in emerging markets and developing countries.
In September 2021, Bangladesh, the United Arab Emirates and Uruguay joined the NDB. In December 2021, the NDB admitted Egypt, with more nations seeking membership.
Al-Mashat said sustainable development had become ever more crucial in these challenging times.
“The theme of this year’s meeting, ”Investing in a Sustainable Future“, resonates deeply with the objectives we all strive to achieve, particularly in a world that is grappling with unprecedented challenges ranging from the lingering effects of the Covid-19 pandemic, climate change and geopolitical tensions affecting peace and security, particularly in the Middle East,” she added.
Al-Mashat said Egypt had always believed in the power of multilateral co-operation. Its strategic geographical location, bridging Africa, Asia and Europe, had long positioned it as a critical nexus for trade, culture and innovation.
“Today, this positioning also underscores our role in fostering South-South and triangular economic co-operation and contributing to the global development agenda,” she said.
Over the past decade, Egypt had embarked on a comprehensive economic reform programme aimed at restoring macroeconomic stability and fostering inclusive quality growth. Despite the significant achievements made, including a marked improvement in public finance, investor confidence and job creation, the country continued to face challenges exacerbated by external shocks and global economic instability.
In response, Al-Mashat said Egypt was reinforcing its commitment to multi-stakeholder partnerships and sharing the best practices and policies among the emerging economies, which were essential in mobilising resources for sustainable development.To that end, Egypt had mobilised $40 billion (R713bn) in development finance, of which $10bn was allocated to the private sector between 2020 and 2024.
Egyt said development finance institutions like the NDB were at the forefront of addressing the vast infrastructure needs of emerging markets and developing countries.
“The scale of these needs is staggering, with Africa alone facing an infrastructure financing gap of up to $108bn annually,” Al-Mashat said. “This is where the NDB’s role becomes crucial, not only in providing financial resources but also in leveraging private sector investments and co-financing arrangements that can amplify our collective impact.”
Egypt was particularly focused on advancing its green energy initiatives as part of its National Climate Strategy. Its efforts were encapsulated in the Nexus of Water, Food, and Energy programme, which aimed to accelerate the national climate agenda and provided opportunities to mobilise climate finance and private investment to support Egypt’s green transition, reflecting the interlinkages and complementarity between climate action and development efforts.
“We look forward to NDB's support in this domain, whether through direct financing or by providing technical assistance,” Al-Mashat said.
FINANCING
Al-Mashat added that to navigate the complexities of global financial markets, it was essential to explore innovative financing solutions such as blended finance, carbon credits and debt-for-climate swops, among others.
This required concerted efforts from all stakeholders, including governments, multilateral development banks, the private sector and philanthropies.
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