$ 500 million in FDI to Egypt via Multilateral Investment Guarantee Agency

$ 500 million in FDI to Egypt via Multilateral Investment Guarantee Agency Sun, Apr. 18, 2021
CAIRO – 18 April 2021: The Multilateral Investment Guarantee Agency (MIGA) supported the influx of foreign direct investments to Egypt worth $ 500 million in many sectors, including extractives and infrastructure, MIGA officials said in a virtual meeting with Egypt’s Minister Rania Al-Mashat.

Minister of International Cooperation, Rania Al-Mashat, held a virtual meeting with officials of the Multilateral Investment Guarantee Agency (MIGA), a member of the World Bank Group.

The meeting comes within the framework of the Minister of International Cooperation's discussion with multilateral and bilateral development partners, to enhance the participation of the private sector in development plans, as it is a key partner in the efforts made by the state to achieve economic recovery and sustainable growth, and to discuss the proposed areas of cooperation for the international agency to ensure investment in Egypt, according to a statement.

The Minister of International Cooperation discussed, with agency officials, providing more investment guarantees to private sector companies in several areas, including communications, electricity, renewable energy and transportation, in order to expand the participation of private sector companies in development efforts.

Al-Mashat presented the measures taken by the state to promote the transformation towards a green economy, especially through the sustainable energy strategy, through which it succeeded in increasing the surplus of electricity, working to explore new areas, including the use of hydrogen to generate electricity, and the introduction of the first green sovereign bonds in the region worth $ 750 million.

She indicated that these measures represent an important factor in promoting green investment in Egypt and enhancing cooperation with the MIGA in this regard.

The minister presented the efforts made by the ministry through the joint coordination cooperation platform through which the ministry seeks to bring together multilateral and bilateral development partners and relevant government agencies, and the ministry’s endeavor during the coming period to hold a joint coordination cooperation platform for the private sector. She also discussed the possibility of cooperation between the International Investment Guarantee Agency and the Chambers of Commerce.

The Minister of International Cooperation also discussed the possibility of enhancing cooperation through the partnership unit with the private sector at the Ministry of Finance, in light of the presence of many successful projects, especially the dry port project in the 6th of October City.

For their part, MIGA officials affirmed their commitment to support vital development sectors in Egypt, including energy and transportation, and to build on successful partnerships, especially the Benban solar power plant project in Aswan. They also looked forward to the possibility of expanding the partnership in the field of wastewater management in Egypt.

The MIGA officials expressed its interest in exploring the three aforementioned areas (transport, electricity and the PPP unit).

MIGA was established in 1988 as a member of the World Bank Group to encourage the flow of foreign direct investment into emerging economies to support economic growth, reduce poverty, and improve the living conditions of the population.

The Ministry of International Cooperation issued the annual report "International Partnerships for Sustainable Development ... Shaping the Future in a Changing World", to review the international partnerships achieved during 2020, where it was agreed on development funds worth $9.8 billion, including $6.7 billion for projects of various state sectors, and $3.1 billion for the private sector.